California SDI Guide: How Do You Get Short-Term Disability Benefits in California?

When life throws hurdles your way, like injury, pregnancy, or taking care of an ill family member, California SDI (State Disability Insurance) helps you navigate these changes without sacrificing your wages and financial security. California SDI offers partial wage replacement for workers unable to work due to short-term medical issues not related to work. While there aren’t many states that have a state-level temporary disability program, California counts among them. Here’s what you need to know about short-term disability insurance in California if you’ve suffered an injury that impacts your income.

California Temporary Disability: Key Takeaways

• Both residents of California and employers should understand California’s Short-Term Disability laws
• Most employees who live in California qualify for Short-Term Disability Insurance because they automatically pay taxes for it in their paycheck
• If you do not qualify for California’s state-run Short-Term Disability Insurance, there are private plans available
• The Employment Development Department (EDD) manages the State Disability Insurance (SDI) programs and provides guidance for California residents experiencing disabilities
• A disability lawyer can help you make a claim, navigate through the appeals process, and ensure that you receive the benefits you’re entitled to

What is State Disability Insurance (SDI)?

SDI, or State Disability Insurance, is the umbrella term for several programs run on a state-level (as opposed to federal or private). In California, this covers Disability Insurance, Paid Family Leave, and Non-industrial Disability Insurance.

The State Disability Insurance program provides partial wage replacement for workers who can’t work due to pregnancy, childbirth, or serious illness, and is funded through paycheck deductions.

Only four other states have temporary disability insurance like California does. These include Rhode Island, New Jersey, New York, and Hawai’i, though the eligibility and percentages differ for each one.

Who Qualifies for California SDI?

Do you live in California and receive a W2 at the end of the year? Great! You most likely qualify for California Short-Term Disability Insurance. Most employees that live in the state of California automatically have taxes for Short-Term Disability Insurance taken from their paychecks. This 1.1% tax is what funds the program.

SDI benefits can be received for a certain duration based on eligibility and past earnings.

However, not everyone who works in California will qualify for this insurance. For example, contractors and most government workers (at the state and federal level) do not qualify for SDI in California. However, they may qualify for NDI, or Non-industrial Disability Insurance.

Who Doesn’t Qualify for California SDI?

Contractors and business owners may also not qualify for SDI because they are not employees. This means that they do not have that tax automatically taken from their paychecks. You have to pay into the program in order to receive a pay out. However, people in this category can pay for Elective Coverage in order to qualify. Those who qualify can file an SDI claim to receive benefits.

Who else does not qualify? Interstate Railroad employees, some domestic workers, and some employees who work at non-profit organizations may not qualify for California SDI. It varies from case to case, so make sure to check with your employer if you are uncertain what benefits you’re entitled to.

Non-Industrial Disability Insurance

Like Short-Term Disability Insurance (SDI), Non-Industrial Disability Insurance (NDI) is a program that provides partial wage replacement for people who are unable to work for an extended period of time. The difference is that this program is available for state employees, who are not generally eligible for SDI. The SDI program also includes Non-Industrial Disability Insurance for state employees.

How Much Money Do I Need to Earn to Qualify for Short-Term Disability Insurance in California?

Now, you may be wondering if you earn too much or too little in order to qualify for Short-Term Disability Insurance in California. The minimum wages to qualify for Short-Term Disability Insurance in California is only $300 in one of the quarters of your base period wages.

The base period wages calculated in California is based on one year of earnings split into four quarters. Typically, it is the money you made from 5-18 months before you file your claim. As long as you made at least $300 during one of those three-month quarters, you should qualify. The benefit amount is calculated based on the highest-earning quarter of the base period.

In the end, California Short-Term Disability Insurance will pay you about 60-70% of your full wages to help you get through those rough patches. So while you don’t have to earn a lot of money in order to qualify, you will receive higher benefits if you had higher earnings during the base period.

How is California State Disability Insurance Funded?

In California, the State Disability Insurance (SDI) is funded entirely through the payroll tax we discussed earlier. While it is collected through employers, it is the employees paying this tax. These deductions are mandatory, meaning that they are required by law. The collected taxes are used to pay SDI benefits to eligible employees.

If you are an employee in California, you can look at your pay stub and should see the 1.1% tax with the deductions for State Income Tax, Federal Income Tax, and Social Security. Because it’s a state-run program, people living in other states don’t have access to it because they don’t pay into it.

How Are Your CA Temporary Disability Benefits Calculated?

California SDI is calculated based on a period of one year that SDI uses to determine what your ‘regular’ wages were. They start this calculation roughly 17 months before you make your short-term disability claim and end about 5 months before you made the claim. This year is referred to as the ‘base period,’ and the money you earned in that period is your ‘base period wages.’

It’s divided into four quarters, three months each, and SDI uses the quarter in which you earned the most money to decide the amount of your benefits. The weekly SDI benefit is calculated based on the highest-earning quarter of the base period. Employees will receive between 60% and 70% of the earnings calculated from the highest-earning quarter of your base period, up to the maximum. For 2024, the maximum weekly payment from California SDI is $1,620 per week.

How to Apply for California State Disability Insurance

So you’re an employee and a resident of California, and you find yourself in need of that partial wage replacement that SDI offers. Here’s how you actually apply for SDI benefits.

How to Apply

For most people, the easiest way to apply is online via a myEDD account and following the instructions to register for SDD Online. However, if any of the following bullet points apply to your situation, you may have to fill out a paper application:

• You do not have a valid (current) California ID or driver’s license
• You do not have a valid Social Security Number
• Your full name does not fit in the space allowance of the online form
• You recently changed your legal name
• You had issues filing an online application or received an error code that you haven’t been able to resolve

Benefit payments can be received through different methods, such as direct deposit or check.

California SDI Forms & Documents You Need

Because California SDI is a program made by the state of California for Californians, there are several documents that you need to prove eligibility in California. SDI California requires specific documents to prove eligibility.

These necessary documents are as follows:

• A valid (current) California ID or driver’s license
• Your full legal name (as it appears on your California license or ID)
• Date of birth as shown on your California license or ID
• Your Social Security Number
• The business name of your current or most recent employer, as well as their phone number and mailing address (as written on your pay stubs or W2)
• The last date that you worked your typical duties, or the day on which you started modified duty due to your disability
• Any and all wages that you received or expect to receive from your employer, including:
  • Sick leave
  • Paid time off (PTO)
  • Annual leave
  • Vacation pay
  • Any wages earned/received after you stopped working
• Workers’ compensation claim information, if applicable
• If you are receiving in-patient care at an alcohol or drug-free rehabilitation facility, the name address, and phone number of this facility
  • Note: the facility has to be certified and licensed by the state in which it is located

How to File an Appeal if Your Claim is Rejected

If your claim is rejected, don’t lose hope. You can file an appeal if you believe that your claim met all of the qualifications. Appeals can be filed electronically or by mail, and you have thirty days to do so after receiving the Notice of Determination from California. The benefit period can vary depending on the circumstances of the claim.

The Notice of Determination is the document that tells you whether or not your claim was accepted. At the same time, they should send you an Appeal Form so that you can get started on your appeal.

On the Appeal Form, you will need to provide a detailed explanation of why your claim should be approved. You will also need to add additional documentation that supports this claim. Sometimes, it can be as simple as you were missing one important document from your claim, so it was rejected.

If your claim is accepted with your appeal, you will go on to receive payments under the program. If your claim is rejected a second time, you have the ability to make a second appeal. At this point, your appeal will be sent to the local Office of Appeals of the California Unemployment Insurance Appeals Board.

They will send you a notification with the information for your hearing, including the date, time, and contact information. At the hearing, you can make a final appeal before a judge. If you do not show up for the hearing, your case will be automatically dismissed.

Alternatives to State-Sponsored Disability Benefits in California

Depending on your specific situation and disability, there are other programs and disability benefits in California that may suit your needs better. Let’s go over a few of the most popular.

When comparing state-sponsored SDI benefits with private plans, it’s important to consider eligibility, duration, and payment amounts to determine which option best meets your needs.

FMLA Leave

FMLA stands for the Family Medical and Leave Act. It is not one law, but rather a series of federal and state laws that protect your job for a certain period if you need to take extended time off to care for yourself or a family member after a medical event, including caring for a new child.

That said, the fact that FMLA protects your job does not mean that you get paid. FMLA guarantees holding your employment for up to twelve weeks of unpaid leave. However, FMLA can be used together with Short-Term Disability Insurance to both protect your job and bring in some income while you are recovering. Additionally, SDI payments can be used in conjunction with FMLA leave to provide income while protecting job security.

In the same vein, SDI will give you a percentage of your income for a certain period of time, but it will not protect your job the way that FMLA does.

Private Plan State Disability Insurance

If you don’t qualify for California’s state-run Short-Term Disability Leave, or if it does not suit your specific needs, there is also a wide range of short-term disability insurance options offered by private insurers.

The main difference with private plans is that you have not already paid in, so you will need to pay monthly premiums. Make sure that you read all of the terms and conditions thoroughly, as they will be different for each plan and insurer. Additionally, the SDI benefit amounts and durations can vary significantly between state and private plans, with state plans often providing more standardized benefits.

For example, if you are seeking short-term disability for pregnancy and childbirth, many of these insurance plans will not allow you to sign up if you are already pregnant. You would need to get insurance before you’re pregnant, depending on the waiting period required by each company.

Short-Term Disability Lawyers in California

If you’re confused about applying for California SDI, there are professionals out there to help you. The process of claiming Short-Term Disability Insurance (SDI) can be frustrating and complicated. This applies especially when you’re simultaneously dealing with an injury, medical emergency, or caring for a family member. Understanding the SDI program, including its coverage, eligibility requirements, and the process for both employees and self-employed individuals, is crucial when seeking legal assistance.

A good disability lawyer will help you by making sure that all of the required documentation is present and accurate, navigating the appeals process with you if your claim is rejected, and taking on the work to secure the benefits you’re entitled to while you recover and care for your family. Professionals are there to help: you don’t have to manage this alone.