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The SDI program is a state-mandated, partial wage replacement insurance plan for California employees. SDI provides short-term, financial benefits to eligible employees who suffer a loss of wages when unable to work due to a non-work-related illness or injury or when medically disabled due to pregnancy or childbirth. SDI is not a leave of absence.
This topic contains the following information:
SDI benefits are available to employees on a leave of absence due to the employee’s own non-work-related disability that results in a loss of wages. Employees unable to work because of a non-work-related disability may be eligible for leave under FMLA, CFRA and/or PDL. This table shows the relationship between SDI benefits and FMLA, CFRA and PDL leaves of absence. Note: Employees taking FMLA or CFRA leave for a reason other than their own illness are not eligible for SDI benefits.
Issue |
FMLA, CFRA, PDL leaves of absence (state and federal law) |
SDI wage replacement during a leave of absence (state law) |
|---|---|---|
|
Employer coverage |
FMLA — 50 or more employees CFRA — five or more employees PDL — five or more employees |
One or more employees |
|
Employee eligibility |
FMLA & CFRA - Has worked for you for 12 months and 1,250 hours in the prior 12-month period. FMLA — Employee works at a worksite with at least 50 employees within 75 miles of the worksite. PDL — Immediate for a period of actual disability. |
Immediately upon employment and need for leave if employee has earned at least $300.00 from which SDI deductions were withheld. Requires seven-day waiting period. |
|
Duration |
FMLA & CFRA — 12 weeks in a 12-month period or, under FMLA only, 26 weeks for service member leave. PDL — Periods of actual disability, up to four months per pregnancy. |
Up to a maximum of 52 weeks. |
|
Reasons for leave |
FMLA For the employee’s own serious health condition; to care for a seriously ill child, parent or spouse; for child bonding (bonding with a newborn child or a child placed with the employee in connection with adoption or foster care). For servicemember care leave or a qualifying exigency related to military service by a family member. CFRA — The employee’s own serious health condition. A qualifying exigency relating to a close family member’s military service. Bonding with a newborn, an adopted child or a child placed in foster care with an employee. Caring for a family member (parent, child, grandparent, grandchild, sibling, spouse or registered domestic partner) with a serious health condition. PDL — Disability due to pregnancy or pregnancy-related conditions. |
Employees can only receive SDI benefits when on leave because of the employee’s own non-work-related disability that results in a loss of wages. |
|
Requirement for medical certification |
Yes, you can require medical certification. |
The EDD determines eligibility for benefits. |
|
Sick, vacation or PTO pay during leave |
FMLA & CFRA — You can require the employee to use accrued benefits such as sick, vacation or PTO while on FMLA or CFRA leave if leave is unpaid. However, if the employee is receiving pay under a disability benefits plan (such as SDI or PFL), they cannot be required to use those benefits. PDL — You can require the employee to use sick pay while on PDL if the leave is unpaid but you cannot require the use of vacation or other accrued PTO during PDL. |
You can allow the employee to use accrued sick, vacation or PTO to supplement SDI benefits while the employee is on leave for FMLA/CFRA/PDL. |
|
Reinstatement rights |
You must reinstate the employee to the job held prior to the need for leave. |
Creates no reinstatement rights. The right may exist under some other law or organization policy. |
|
Continuation of benefits |
The employee is entitled to the same level of benefits as if they were still on the payroll. The employee pays any contribution they would pay if they were at work. |
No benefit continuation unless it exists under some other law. |
The Disability Insurance Branch of the EDD administers three disability insurance plans:
Individuals in family employment not covered by the California Unemployment Insurance Code can also elect coverage at the same rate and with the same benefits as employees covered by the state plan.
A common misconception is that an employee who collects SDI has a right to a protected leave of absence as long as they collect SDI. In fact, you are not obligated to hold a job because an employee collects SDI benefits.1 Even when collecting SDI benefits, an employee has no right to a guaranteed return to their job unless covered by one of the mandatory leave laws, such as family leave or pregnancy leave, or is on a leave as a reasonable accommodation under disability laws.
For more information on mandatory leave and disability discrimination laws, see:
The EDD excludes certain employees from SDI coverage. These employees are not required to contribute to the SDI program:
An individual who is a sole stockholder of a private corporation organized for profit and who is included within the meaning of the term “employee” can refuse their rights to disability insurance benefits. This exempts the corporation from making the required contributions. The individual must submit Form DE 459 - Sole Shareholder/Corporate Officer Exclusion Statement to the EDD before the exemption takes effect.
1. UI Code sec. 2601
2. UI Code sec. 2606
3. UI Code sec. 710
4. UI Code sec. 710.5
5. UI Code sec. 2902
6. UI Code secs. 684, 2606.5