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Employer Eligibility and Benefits FAQs

Yes, where they live does not affect their eligibility. Their job must be based in California, and they must pay into State Disability Insurance (CASDI on their paystub).

You can find the current contribution rates on the Disability Quick Statistics page.

Yes, but they are not required to join under the California Unemployment Insurance Code. Employers can choose to offer coverage for all employees if they have:

  • An election by the appropriate governing board.
  • A written petition signed by a majority of the employees.

Important: Employees may not join as individuals.

Public agency employers may elect coverage for:

  • Employees who are in an appropriate bargaining unit. The election must result from a negotiated agreement.
  • Management and confidential employees.
  • Employees who are not part of an appropriate bargaining unit.

To learn more, visit the Public Entity Employers page and review:

For help with specialized coverage call:

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

Yes, but they are not required to join under the California Unemployment Insurance Code. If they want to join, these employers must apply and elect to join as a group. Employees may not join as individuals.

Public school employers may elect coverage for:

  • Employees who are in an appropriate bargaining unit. The election must result from a negotiated agreement.
  • Management and confidential employees.
  • Employees who are not in an appropriate bargaining unit.

Community college districts may elect coverage for:

  • Employees who are in an appropriate bargaining unit. The election must result from a negotiated agreement.
  • Management and confidential employees.
  • Employees who are not in an appropriate bargaining unit.
  • Academic employees.

To learn more, visit the Public School Employers and School Employees Fund pages and review:

For help with specialized coverage call:

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

Yes, but tribal employers are not required by the California Unemployment Insurance Code to join the SDI program.

Indian tribes may elect coverage for all employees if they have:

  • An election by the appropriate governing board.
  • A written petition signed by a majority of the employees.

Important: Employees may not join as individuals.

Indian tribes (as described by Section 3306(u) of the Internal Revenue Code) may elect coverage for:

  • All employees employed at one or more business locations.
  • Employees in an appropriate bargaining unit. The election must result from a negotiated agreement.
  • Management and confidential employees.
  • Employees who are not part of an appropriate bargaining unit.

To learn more, visit the Indian Tribe Employers page and review:

For help with specialized coverage call:

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

No, there’s no required number of working hours or days to qualify for benefits. But, your employee must have earned at least $300 with State Disability Insurance deductions taken out during their claim base period.

Yes, if your employees work part-time and lose wages due to a disability or family leave, they may receive benefits. They must all meet the other eligibility requirements.

For more information, visit the Part-time/Intermittent/Reduced Work Schedule page.

No, employees can use their Paid Family Leave hours, days, or weeks at a time. There is only an established maximum leave time of 8 paid weeks within a 12-month period.

No, they are not required by law to use vacation, paid time off, or sick leave while receiving benefits.

Yes, your employee may submit a claim for Paid Family Leave benefits to care for a seriously ill family member living out of the state or out of the country.

To qualify for benefits they must:

  • Provide a properly completed signed medical certificate from the family member’s medical provider which establishes a need for care.
  • Meet all other eligibility requirements.

Family members may include:

  • Child
  • Parent
  • Parent-in-law
  • Grandparent
  • Grandchild
  • Sibling
  • Spouse
  • Registered domestic partner

No, state law requires the State Disability Insurance program and contributions. They can only opt out of Disability Insurance (SDI) if they have an EDD approved:

  • Voluntary Plan: Employers or most employees at your company can apply for a Voluntary Plan to replace SDI. For more information visit: Voluntary Plan Information.
  • Religious Exemption: If they follow the faith or teachings of a bona fide religious sect, denomination, or organization whose creed, tenets, or principles depend on only prayer for healing, they may request an exemption. Have them complete and mail the Religious Exemption Certificate (DE 5067) to the address on the form. If we grant this exemption, they will not be eligible to receive SDI benefits.

The Paid Parental Leave Ordinance (PPLO) is a San Francisco law that applies to employers with 20 or more employees worldwide.

If you employ workers in San Francisco, you may need to pay part of their wages. This applies when employees receive PFL benefits for bonding with a new child through:

  • Childbirth
  • Adoption
  • Foster care placement

For more information, read the Paid Parental Leave Ordinance.

It takes about two weeks to process a new application and issue payment to eligible employees. If we need additional information, more time may be needed to process their claim.

We use the employees’ highest three-months of wages in their base period. The employees’ base period is 5 to 18 months before the claim begins. The base period will include all wages paid that are subject to State Disability Tax.

Note: The base period does not include wages paid at the time the claim begins.

We send a Notice of Computation (DE 429D) to your employee when we receive their application. It shows the wages we used to calculate their benefit payment.

Learn More:

In most cases, employees usually cannot receive Disability Insurance (DI) or Paid Family Leave (PFL) benefits while receiving Unemployment Insurance (UI) or workers’ compensation benefits. However, there are exceptions:

  • If your employee’s weekly workers’ compensation is less than their weekly DI or PFL benefit amount, they may receive the difference.
  • Your employees may receive Social Security disability at the same time as DI. To learn more visit Social Security Administration.
  • Other benefits, like employer-paid baby bonding, may affect PFL benefits.

We treat paid sick leave as wages earned. We may reduce your employees’ benefits:

  • By the amount of sick leave pay received unless you allow employees to combine wages.
  • If the amount of sick leave pay combined with benefits is more than their usual wages.

We will notify your employees if there are any reductions to their benefits.

Combining Benefits

If you allow your employee to combine sick leave pay with SDI benefits to receive their usual full wage, it will not affect their DI or PFL benefit amount.

Disability Insurance (DI):

 DI benefits are not reportable for tax purposes, unless your employee switches from Unemployment Insurance (UI) to DI. This happens if the employee becomes unable to work due to a disability while receiving UI. In that case, we treat the DI payments as a substitute for UI and they become reportable for taxes.

If your employee switches, we will send them a notice explaining their benefits will be reported to the Internal Revenue Service (IRS). In January, we will send the employee and the IRS a copy of the 1099G form.

Paid Family Leave (PFL):

PFL benefits are reportable for federal tax purposes but not for state tax. We will provide your employee with a 1099G form and forward a copy of the 1099G to the IRS.

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.

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