Integration of Wages with Benefits FAQs
Integration of wages with Disability Insurance (DI) or Paid Family Leave (PFL) benefits, also known as coordination or supplementation, is when an employee receives their full DI or PFL weekly benefit amount and is also paid wages from their employer or uses available leave to cover the difference between their benefit amount and their regular wages. Visit Integration of Benefits for more information.
This process may allow you to receive up to 100 percent of your normal weekly salary during a period of disability or family leave while using a reduced amount of your leave balance or receiving wages from your employer.
Example: Your current gross (before taxes and deductions) weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. Your employer can integrate a maximum amount of $225 per week in gross wages to you, allowing you to receive up to 100 percent of your normal weekly gross pay.
When the integration process is used by your employer, and we confirm this process, we will pay your full DI or PFL benefits.
Note: It is the responsibility of both you and your employer to make sure that you are not receiving more than 100 percent of your normal weekly salary when receiving integrated wages along with the DI or PFL weekly benefit amount.
We may give this information to an employer if their employee provides written permission on their initial DI or PFL claim forms. The employee must answer Yes to the question, “May we disclose benefit payment information to your employer(s)?” when completing their claim form. If the employer integrates with DI or PFL, they need this information to make sure the right amount of wages are paid to the employee.
An employee can also submit a separate written letter giving us permission to disclose benefit payment information to their employer.
DI and PFL are partial wage-replacement programs, meaning that if an employee takes time off work due to a disability or the need to care for a seriously ill family member, bond with a new child, or participate in a qualifying military event, they must have a wage loss to qualify for benefits.
Wages received during this time, plus DI or PFL benefits, cannot be more than the employee’s normal weekly salary (excluding overtime pay) before the start of the disability or family leave period.
To review the law, visit California Unemployment Insurance Code Section 2656.
The most common types of payments are sick leave, bereavement pay, back pay, and earnings (full or partial return to work). For more information, visit Reporting Your Wages or Work Status for DI and Reporting Your Wages - PFL.
Note: Employees can use leave credits such as sick leave, vacation, and other paid time off to add to their claim benefits. Leave credits can be used during the seven-day waiting period for DI claims.
DI - Yes. Vacation benefits are not in conflict with DI.
PFL - Yes. Vacation can be used to supplement your PFL benefits so you can receive up to 100 percent pay.
Your employer may require you to use up to two weeks of vacation before receiving PFL benefits. If your employer requires that you use vacation first, you won’t receive PFL benefits for those days. You will receive PFL benefits after you have used the vacation leave required by your employer.
Yes, but depending on the type of paid leave and how much you receive, your DI or PFL benefits may be reduced or denied.
Vacation Pay: You can receive DI benefits at the same time.
Sick Pay: You cannot receive DI benefits if you also receive sick leave wages that equal your full salary. If you receive only partial sick leave wages, you may be eligible for full or partial DI benefits.
Other Pay: All other pay, including holiday pay, must be reported to confirm your eligibility.
The first seven days of your DI claim is a non-payable waiting period. Any type of wages paid by the employer during the waiting period do not conflict with DI benefits.
Disability Insurance and Paid Family Leave Benefits
Find DI Information for You
Register for myEDD
Creating an account is an important step in this process. With myEDD, you can apply for Disability Insurance and manage your claim in SDI Online.
Additional Resources
Can’t find what you are looking for? View these DI and PFL resources for more information.
- General SDI Information
- SDI FAQs
- Forms and Publications
- SDI Online Tutorials and Videos
- Self-Service Options
- Contact SDI