San Francisco Shortens Paid Parental Leave Eligibility Period, by Kartikey A. Pradhan, Esq. and Emma Baker, Esq., 9-28-2026

San Francisco has amended its Paid Parental Leave Ordinance (PPLO) to shorten the length of time employees generally must be employed by a covered employer before potentially qualifying for employer-paid supplemental compensation during parental leave.

Mayor Daniel Lurie approved Ordinance No. 162-26 on August 7, 2026. The ordinance reduces the employment-duration requirement from 180 days to 90 days, subject to a phased implementation schedule based on employer size.

New 90-Day Employment Requirement

The PPLO requires covered employers to provide supplemental compensation to eligible employees who receive California Paid Family Leave benefits to bond with a new child. The ordinance generally applies to employers that regularly employ 20 or more employees total, regardless of location. Employers that regularly employ fewer than 20 employees are not subject to the PPLO and are therefore unaffected by the amendment.

To qualify as a covered employee, an individual generally must have commenced employment with the covered employer at least 90 days before the start of the leave period, subject to the ordinance’s transition provisions.

That said, other PPLO eligibility requirements remain in place. Among other things, an employee generally must work at least eight hours per week for the employer within San Francisco, perform at least 40% of their total weekly hours for the employer within San Francisco, and be eligible for California Paid Family Leave benefits for bonding with a new child. Part-time and temporary employees may also qualify as covered employees, provided they satisfy the ordinance’s foregoing eligibility requirements.

Phased Implementation

The 90-day requirement does not apply to all covered employers at the same time. The ordinance includes transition provisions that temporarily preserve the existing 180-day employment requirement based on employer size.

For employers that regularly employ 100 or more employees, the 180-day requirement remains in effect through December 31, 2026. The 90-day requirement will apply beginning January 1, 2027.

For employers that regularly employ 20 to 99 employees, the 180-day requirement remains in effect through December 31, 2027. The 90-day requirement will apply beginning January 1, 2028.

In both instances, the employee-count thresholds apply regardless of location.

What Employers Should Do

Covered employers should determine when the new 90-day requirement will apply based on their workforce size and review parental leave policies, employee handbooks and leave-administration procedures in advance of the applicable transition date. Covered employers should also assess the San Francisco Office of Labor Standards Enforcement’s PPLO webpage as part of that preparation and periodically thereafter for revised compliance materials and implementation guidance.

Employers should also ensure that human resources personnel and leave administrators understand the shorter eligibility period and that systems used to determine PPLO eligibility are updated at the appropriate time. Employers with employees approaching the current 180-day threshold should pay particular attention to leave periods beginning around the applicable transition date.

The amendment does not otherwise eliminate the PPLO’s existing eligibility requirements. Employers should continue to evaluate whether employees satisfy the ordinance’s work-location and California Paid Family Leave requirements when determining eligibility for supplemental compensation.

Authors: Kartikey A. Pradhan, San Francisco Partner, and Emma Baker, Los Angeles Associate.