# How do paid leave policies affect my job and benefits in California?

- Jurisdiction: United States
- Practice area: Employment Law
- Published: 2026-10-24
- Last updated: 2026-10-24
- Canonical: https://lawasked.com/us/employment-law/how-paid-leave-policies-affect-my-job-benefits

## Question

I am currently working a full-time administrative role at a mid-sized logistics company in California. My manager recently informed me that because our company has about 150 employees, they are looking into new ways to handle time off for family emergencies or medical issues. I have been with this company for three years, and my paycheck is steady, but I am worried about the future. My sister is expecting a baby in October, and I might need to take a few weeks off to help her, or I might face my own health issues later this year. I already spoke to my HR representative, and they mentioned that they are reviewing how different types of leave policies—both the ones the law requires and the ones the company offers voluntarily—might change our insurance premiums or even affect how much work gets done. I am really confused about how these different leave programs might impact my actual benefits, like my health insurance coverage, or if the company might try to charge me more for my premiums to cover the costs of these programs. I want to know if there is any official research or information available that looks at how these kinds of leave policies actually affect workers' benefits and the costs for both the employees and the business owners.

## Summary

It depends on whether your company's policies are voluntary or required by law, but generally, your employer must maintain your health insurance coverage during leave and cannot reduce your existing benefits. However, there is official research mandated by law to study exactly how these policies impact costs and benefits for both workers and businesses.

## Analysis

Under the Family and Medical Leave Act (FMLA), your employer has specific obligations regarding your benefits. Regarding your health insurance, the law states that "during any period that an eligible employee takes leave... the employer shall maintain coverage under any 'group health plan'... at the level and under the conditions coverage would have been provided if the employee had continued in employment continuously" [cite:us-title29-fmla-sec2614]. This means your company cannot drop your health insurance or change your coverage levels just because you are taking leave for a serious health condition or to care for a family member. 

Regarding your concern about costs, the law allows employers to "recover the premium that the employer paid for maintaining coverage... during any period of unpaid leave" if you fail to return to work for reasons other than a continuing health condition or circumstances beyond your control [cite:us-title29-fmla-sec2614]. 

As for your question about official research, the law actually requires a commission to "conduct a comprehensive study of... the potential costs, benefits, and impact on productivity, job creation and business growth of such policies on employers and employees" [cite:us-title29-fmla-sec2632]. This study is specifically designed to look at how these policies affect the availability of employee benefits and the costs to both sides. 

Because you have been with your company for three years, you likely meet the definition of an "eligible employee," which requires being employed for at least 12 months and working at least 1,250 hours in the previous year [cite:us-title29-fmla-sec2611]. Since your company has 150 employees, it meets the threshold of 50 or more employees required to be covered by these federal rules [cite:us-title29-fmla-sec2611]. 

It is unsettled whether your specific company's voluntary policies will result in higher premiums for everyone, as the statutes provided focus on the protections for those taking leave rather than the math behind company-wide premium adjustments.

## Statutory citations

- Family and Medical Leave Act of 1993, 29 U.S.C. § 2632 - Duties [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section2632)
  > conduct a comprehensive study of... the potential costs, benefits, and impact on productivity, job creation and business growth of such policies on employers and employees
- Family and Medical Leave Act of 1993, 29 U.S.C. § 2614 - Employment and benefits protection [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section2614)
  > the employer shall maintain coverage under any “group health plan”... at the level and under the conditions coverage would have been provided if the employee had continued in employment continuously

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