On August 7, 2026, the mayor signed Ordinance 162-26, which cuts the tenure requirement under San Francisco’s Paid Parental Leave Ordinance (SFPPLO) from 180 days of employment to just 90 days.
The change doesn’t take effect immediately, but it’s a good time for HR teams to start planning ahead of the 2027 and 2028 compliance dates.
What’s Changing
SFPPLO requires employers with 20 or more employees (regardless of location) to provide covered employees with “supplemental compensation”—top-up pay that, combined with an employee’s California Paid Family Leave (CA PFL) benefit, brings them up to their full weekly wages (or up to a cap; in 2026, the maximum combined cap is $2,522/week) while they’re bonding with a new child.
Previously, employees needed 180 days of employment before they could qualify for this supplemental pay. Ordinance 162-26 cuts that requirement in half, to 90 days, aligning the SFPPLO’s waiting period with San Francisco’s Paid Sick Leave Ordinance.
The new 90-day requirement is phased in by employer size:
- January 1, 2027: Employers with 100 or more employees must apply the 90-day requirement
- January 1, 2028: Employers with 20–99 employees must apply the 90-day requirement
All other eligibility rules stay the same. To qualify, an employee must still:
- Work at least 8 hours per week in San Francisco
- Perform at least 40% of their total weekly hours in San Francisco
- Qualify for CA PFL benefits for new child bonding
Why It Matters
Employers should expect more employees to qualify for top-up pay, and to qualify for it earlier in their tenure, than under the current 180-day rule.
SFPPLO already applies to employers with 20 or more employees, regardless of where those employees are located, as long as they have employees who meet San Francisco’s work-location criteria. That scope isn’t changing—only the length of time an employee needs to be on the job before supplemental pay kicks in.
What to Do
Between now and your applicable compliance date, HR teams should:
- Update parental leave policies and handbooks to reflect the 90-day tenure threshold on your compliance date
- Refresh workplace postings and notices so they reflect the current eligibility rules once the change takes effect
How Sparrow Helps
Sparrow keeps employers ahead of requirements like SFPPLO, so HR teams don’t have to track ordinance changes and phase-in dates on their own. Beyond any single program, Sparrow helps manage employee leave end to end—checking eligibility, guiding employees through the claims process, keeping leave aligned with job protection rules, and surfacing compliance obligations before they become a problem. That means clearer visibility for your team and less manual tracking, without adding to HR’s plate.