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Disability Insurance Elective Coverage (DIEC)

We offer Disability Insurance Elective Coverage (DIEC) for people who don’t pay into State Disability Insurance (SDI). DIEC protects small-business owners, entrepreneurs, self-employed, and independent contractors. It offers them access to Disability Insurance (DI) and Paid Family Leave (PFL) benefits.

Important: You must be part of the DIEC program for at least six months from the approved start date of your plan before you can apply for DI or PFL benefits.

DIEC offers DI benefits when you can’t work and lose wages because of a non-work-related:

  • Illness or injury (either physical or mental)
  • Pregnancy, childbirth, or other related conditions
  • Surgery (including elective)
  • Alcohol or drug rehabilitation (some restrictions apply)

DIEC offers PFL benefits when you need to take time off from work to:

  • Care for a seriously ill family member. (Child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner.)
  • Bond with a new child entering the family through birth, adoption, or foster care placement.
  • Support a family member in the US armed forces who is deploying to a foreign country. (Spouse, registered domestic partner, parent, or child.)

The DIEC program is for:

  • Sole proprietors.
  • Independent contractors.
  • Partnerships.
    • General Partnership.
      • A general partnership can include married couple co-owners who are active in managing the business. Not all active general partners need to be listed on the application.
    • Limited Partnership (LP).
      • Limited partners and corporate officers are not eligible because they are considered employees. They are subject to the mandatory provisions of the California Unemployment Insurance Code.
    • Limited Liability Partnership (LLP).
  • Co-ownerships.
  • Managing members of a Limited Liability Company, if taxed as sole proprietor for federal income tax.

To take part in the program you must:

  • Own a business, be self-employed, or work as an independent contractor.
  • Have a net profit of at least $4,600 a year.
  • Have a valid license if your work requires one.
  • Be able to perform all your normal duties on a full-time basis at the time you submit your application.
  • Receive most of your income from your trade, business, or independent contract work.
  • Have a business that is not seasonal.
  • Stay in the program for two complete calendar years unless you:
    • Close your business.
    • Move out of California.

Review our Elective Coverage for Employers and Self-Employed Individuals (DE 231EC) (PDF) sheet. It will give you program and eligibility information before you fill out your DIEC application.

Preliminary Worker Classification Assessment or Audit Lead Referral

If you are a worker and you:

  • Think you are misclassified as an independent contractor.
  • Want to provide information on the business as a possible employment tax audit lead.

You should submit a Request for Preliminary Worker Classification Assessment or Audit Lead Referral (DE 230) (PDF) to us.

For more information visit the Legal Aid at Work Misclassified Workers’ Guide to Applying for California Disability Insurance and Paid Family Leave.

You can apply for the DIEC program by completing an application and mailing it to the address on the form. You can download any of the following forms or call 1-916-554-7104 to receive them by mail:

For more information or help with forms and the application process, call the Taxpayer Assistance line at 1-888-747-3886.

Once you have an approved DIEC account:

  • You must be part of the DIEC program for at least six months from the approved start date of your plan. After that, you are usually eligible to apply for DI or PFL benefits.
  • You must also pay contributions for at least 4 months in the prior 12 months before you apply for benefits.
  • The best way to apply for your disability or Paid Family Leave benefits is by filing online. You must create a myEDD account before you can log in or apply for benefits using SDI Online.

Log In or Create Account

If you need more information, you can view more about benefits or your options to file for:

You can cancel your DIEC account but there are some rules:

  • After choosing elective coverage, you must stay in the plan for two full calendar years. After that, you can stop your coverage.
  • To cancel you must submit a request in writing to the Tax Branch on or before January 31st. It will be effective as of January 1st of the year you filed the request.
  • To stay in the program, you must show a profit of at least $4,600 per year. If your profits fall below this level for three years in a row, we may cancel your coverage.
  • We can choose to cancel your DIEC account if you no longer meet any program requirements. The cancellation will be effective January 1st.

To speak with an agent, call:

  • DIEC Unit at 1-916-654-6288.
  • EDD Taxpayer Assistance Center at 1-888-745-3886.
  • TTY users dial the California Relay Service at 711.

Agents are available Monday through Friday from 8 a.m. until 5 p.m. Offices are closed on weekends and holidays.

More Information