This Day In Market History: San Francisco Mandates Paid Parental Leave

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened: On April 5, 2016, San Francisco became the first U.S. city to guarantee fully paid parental leave.

Where The Market Was: The S&P 500 closed down at 2,045.17, and the Dow Jones Industrial Average closed at 17,603.32.

What Else Was Going On In The World: The Panama Papers prompted the resignation of Iceland’s prime minister, and Paypal Holdings Inc PYPL canceled a $3.6-million investment in North Carolina in protest of the state’s new anti-gay legislation.

First Paid Parental Leave Policy Approved: The city of San Francisco led the nation in approving fully paid leave for new parents. Mothers and fathers receive six weeks regardless of whether they bore or adopted a child.

Ahead of this policy, the state of California guaranteed parents 55% of their pay for six weeks, all financed by the employees’ public disability insurance; San Francisco’s law required employers to make up the 45% difference, completing the paycheck.

The progressive policy was said to have had wide support — except from small businesses.

Since its enactment, a number of companies have updated their paid family leave policies. The Family and Medical Leave Act (FMLA) provisions were amended in Title 5, United States Code (U.S.C.) to provide up to 12 weeks of paid parental leave to covered Federal employees in connection with the birth or placement (for adoption or foster care) of a child occurring on or after Oct. 1, 2020.