Governor Signs Lorena Gonzalez Bill to Ensure Workers Don’t Lose Their Money in Flexible Savings Accounts

For immediate release:

SACRAMENTO – (Friday, Aug. 30, 2019) – California Governor Gavin Newsom signed state Assemblywoman Lorena Gonzalez (D-San Diego) legislation to require employers to provide workers two different notices reminding them to withdraw or use funds in their Flexible Savings Accounts (FSAs) before they expire.

“Workers shouldn’t lose their hard-earned income sitting in Flexible Savings Accounts just because they didn’t receive a notice from their employer,” Assemblywoman Gonzalez said. “I’m proud to have authored this new law to add additional notification requirements before workers lose their saved earnings for dependent care, health services and adoption assistance.”

FSAs are employee pre-tax benefit accounts that can be used to pay for eligible services. However, if the employee does not claim all of the money in their account during the year, or does not file for reimbursement before the March 31 deadline, any remaining funds are forfeited to the employer. 

Assembly Bill 1554 would require employers provide two notices (one that needs to be electronic) to remind employees to withdraw funds before they expire.

For questions on AB 1554 or to schedule an interview with Assemblywoman Gonzalez, contact Sami Gallegos (209) 658-7617.

Assemblywoman Lorena Gonzalez represents California’s 80th Assembly District, located in southern San Diego County, including the cities of San Diego, Chula Vista, and National City. She serves as Chair of the Assembly Committee on Appropriations, Chair of the Assembly Select Committee on Women in the Workplace, and Chair of the California Latino Legislative Caucus. For more information on Assemblywoman Lorena Gonzalez visit