California Short Term Disability Information
Short term disability insurance plans provide salary replacement to California workers who incur a temporary disability. The state-mandated program is called State Disability Insurance (SDI). Optional individual or group disability plans may provide additional coverage.
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Significance
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California is only one of five states, including Puerto Rico, to mandate that employers provide short term disability benefits to all employees.
Types
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State Disability Insurance (SDI) comes in two forms: disability insurance and Paid Family Leave Insurance. California workers may also carry employer-sponsored plans, professional group coverage, or individual disability plans that cover wages above the the maximum payment allowed by SDI..
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Eligibility
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All California workers pay into SDI. Employer-sponsored and professional-affiliated plans may require that individuals work for a specific period of time before qualifying for benefits. Individual plans usually provide coverage for those without pre-existing medical conditions. All paperwork requires physician verification.
Benefit Amounts
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Calculation of claim benefits begin on the first day of disability. SDI bases the disability claim on the highest-earning calendar quarter in the 12 months of the base period. For example, claims filed in March would count as its base period the 12 months leading up to September 30 of the previous year, and claims filed in May would count as its base the 12 months leading up to December 31 of the previous year.
Time Frame
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Coverage lasts up to one year (12 weeks), with an additional four months available for those on maternity leave. Most plans require a one-week waiting period before paying out benefits.
Considerations
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Some short term disability plans require that sick leave benefits expire before coverage begins. In addition, some employers may require that employees get the maximum benefit allowed by SDI providing additional benefits up to the percentages allowed by the plan.
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