I think you have in correct. If you can see that your Box 16 California wages are less than Box 1 federal wages by the amount of your PFL, then enter 0. (This seems to be how your employer described it in your question.)
If Box 1 and Box 16 are the same, then enter "PFL income received from insurance company" as the amount of the PFL.
Here's a great answer explaining your situation. Please feel free to post any additional details or questions in the comment section.
https://ttlc.intuit.com/replies/5798772
