Paid Disability Leave - Brightwood Law Group, PC

California State Disability Insurance (SDI): An Overview

Financial Support When You Can’t Work Due to Disability

When a non-work-related illness, injury, or pregnancy prevents you from working, the loss of income can create significant financial hardship. California’s State Disability Insurance (SDI) program provides crucial short-term wage replacement benefits to eligible workers, helping to bridge the financial gap during these challenging times.

It’s important to understand that SDI is a state-administered insurance program providing monetary benefits; it does not, by itself, guarantee job-protected leave. Job protection typically comes from other laws like FMLA, CFRA, or PDL, which may run concurrently with your SDI benefits period.

What is California State Disability Insurance (SDI)?

State Disability Insurance (SDI) is a California state program that provides partial wage replacement benefits to eligible workers who are unable to perform their regular or customary work due to a non-work-related illness, injury, or pregnancy-related condition. SDI is funded through mandatory employee payroll deductions (you’ll see this as “CASDI” on your pay stubs). It is not paid for by employers directly. The program is administered by California’s Employment Development Department (EDD).

Who is Eligible for SDI Benefits?

To be eligible for SDI benefits, you generally must meet the following criteria:

Be unable to do your regular or customary work for at least eight consecutive days due to a non-work-related illness, injury, or pregnancy/childbirth. (Work-related disabilities are typically covered by Workers’ Compensation insurance).
Have lost wages because of a non-work-related illness, injury, or pregnancy/childbirth.
Be under the care and treatment of a licensed physician/practitioner who certifies your disability and its estimated duration. This medical certification is a required part of your SDI claim.
Have earned at least $300 from which SDI deductions were withheld during your “base period” (a 12-month period determined by the EDD, typically 5 to 18 months before your disability began). You can find these deductions on your paystub.
File your claim no earlier than the first day your disability begins and no later than 49 days after your disability begins to avoid potential disqualification or loss of benefits.
Immigration status is not an impediment to receive benefits, employees who are undocumented can file for and receive benefits if they meet eligibility requirements and have paid into the California State Disability Insurance fund.

SDI Benefits: What Can You Receive?

Benefit Amount: If eligible, you can receive SDI benefits equal to approximately 60 to 70 percent of the wages you earned 5 to 18 months before your claim start date. The EDD calculates this based on your highest quarter of earnings in your base period. There is a maximum weekly benefit amount set by law, which is updated periodically.
Benefit Duration: You can typically receive SDI benefits for up to 52 weeks (one year) for a period of disability, provided your medical certification continues to support your inability to work. However, for typical pregnancy-related disabilities, SDI benefits are often paid for up to 4 weeks before your due date and for 6 weeks (for a normal delivery) or 8 weeks (for a Cesarean section) after delivery, or longer if your doctor certifies a longer period of disability.
Waiting Period: There is a seven-day, non-payable waiting period from the start of your disability before SDI benefits begin. You will not be paid for these first seven days.

SDI and Pregnancy/Childbirth

SDI plays a critical role in providing financial support for employees disabled by pregnancy, childbirth, or related medical conditions:

Pregnancy Disability: SDI benefits are commonly paid during an employee’s Pregnancy Disability Leave (PDL). PDL provides up to four months of job-protected leave, and SDI can provide wage replacement during the time an employee is certified as disabled by their doctor due to pregnancy or childbirth.
Typical Duration: As mentioned, this often covers a period before the due date and for several weeks after birth (depending on the method of birth), or for the entire period of actual disability as certified by a healthcare provider.

How do I Apply for SDI Benefits?

The most common and efficient way to apply for SDI benefits is online through the EDD’s SDI Online portal. You can also apply by mail. The process generally involves:

Gathering Information: You’ll need information about your last employer, dates you were unable to work, and details about your physician/practitioner.
Filing Your Claim (Part A - Claimant): Complete and submit your portion of the claim form to the EDD no later than 49 days after your disability begins.
Medical Certification (Part B - Physician/Practitioner): Your physician or medical practitioner must complete and submit a medical certification of your disability to the EDD. They can often do this online as well.
Employer Notification: The EDD will notify your most recent employer(s) of your claim. Your employer will be asked to provide information, but they do not approve or deny your SDI claim; the EDD makes that determination.

SDI vs. Other Leaves and Benefits: Understanding the Differences

It’s crucial to understand how SDI interacts with other leave and benefit programs:

FMLA/CFRA: These laws provide unpaid, job-protected leave. SDI can provide partial wage replacement while you are on FMLA/CFRA leave for your own serious health condition (including pregnancy-related disability). If you need wage replacement when you are on FMLA/CFRA to care for a family member or for baby bonding you may be eligible under Paid Family Leave (PFL) benefits under SDI.
Pregnancy Disability Leave (PDL): PDL provides unpaid, job-protected leave for pregnancy-related disability. SDI provides partial wage replacement during PDL.
California Paid Sick Leave (PSL): This is employer-paid leave that you can use for shorter illnesses or to cover the 7-day SDI waiting period. Some employer policies may allow you to integrate PSL with SDI benefits to supplement your income. Please review your employers’ policies and practices.
Workers’ Compensation: This provides benefits (including wage replacement and medical care) for work-related injuries or illnesses. SDI is for non-work-related conditions.
Unemployment Insurance (UI): UI provides benefits for those who are unemployed but are able and available to work. SDI is for those who are unable to work due to a disability. You generally cannot receive SDI and UI benefits at the same time.

Common Issues or Questions Regarding SDI

What if my SDI claim is denied? If the EDD denies your claim, you have the right to appeal the decision. The appeal process will be explained in your denial notice.
Can my employer fire me while I’m receiving SDI benefits? SDI itself does not provide job protection. However, if your disability also qualifies you for FMLA, CFRA, or PDL, those laws do provide job protection. Being on SDI may coincide with these protected leaves. If you are fired while receiving SDI and believe it was due to your disability or need for leave, it could be wrongful termination and you should contact our office immediately.
Are SDI benefits taxable? SDI benefits are generally not subject to California state income tax. However, they may be subject to federal income tax if you receive them as a substitute for Unemployment Insurance benefits, or under certain other circumstances. It’s best to consult EDD materials or a tax professional for specific advice. Please note our office does not provide any tax advice or guidance.

How Brightwood Law Group Can Help with Related Employment Rights?

While Brightwood Law Group, does not typically handle the direct application process for SDI benefits with the EDD, we play a crucial role in protecting your employment rights that are often connected to your need for disability leave.

For a general overview of leave options, see our California Medical and Family Leave Overview.

Learn about federal job-protected leave under the Family and Medical Leave Act (FMLA).

Understand your state job-protected leave under the California Family Rights Act (CFRA).

If you faced negative actions from your employer due to your disability or leave, see Retaliation for Taking Medical Leave and Discrimination Overview.

Unable to Work Due to Disability? Understand Your Benefits and Rights, Call us Today!

While California’s State Disability Insurance can provide vital financial support, it’s important to also understand your job protection rights under other state and federal laws. If you have questions about your medical leave, disability accommodations, or believe your employer has violated your rights related to a disability or leave, contact our office and speak to an experienced attorney. We can help you by providing a free consultation to determine if we are able to represent you and pursue legal action.