Human Resources Manual - CalHR

Human Resources Manual - CalHR
1410 - State Disability Insurance (SDI)
Category
Benefits and Insurance
Audience List
Employee Relations Officers
Personnel Officers
Personnel Transactions Supervisors
Synopsis
This policy
Defines State Disability Insurance (SDI) and the length of SDI entitlement.
Identifies Leave of Absence (LOA) requirements.
Discusses the waiting period, use of leave credits, and leave supplementation during SDI.
Provides information on the continuation of health benefits, working while on SDI, FMLA, and Workers’ Compensation.
Provides an illustration of using various leave programs with SDI.
Introduction
The SDI program is a partial wage replacement insurance plan for eligible state employees.  Employees covered under the SDI program have two benefits available to them:  Disability Insurance (DI) and Paid Family Leave (PFL).
The Employment Development Department (EDD) has SDI administrative responsibility and determines the annual employee contribution rate; the State Controller’s Office (SCO) provides employment history transaction instructions, and the Department of Human Resources (CalHR) has program responsibility.
For specific benefit eligibility and payment amount information refer to EDD’s website.
Statement
The SDI program is a wage continuation program for employees who have been certified for a non-work-related illness or injury. SDI is available to rank-and-file employees in BU 1, 3, 4, 10, 11, 14, 15, 17, 20, and 21.
Effective July 1, 2025, employees represented by BU 10 will be eligible for SDI benefits.
There will be a transition period beginning January 1, 2025 to June 30, 2025 while converting BU 10 employees from NDI/ENDI to SDI.  SDI deductions will be effective with the January 1, 2025 pay warrant.  During the transition period, BU 10 employees will continue to be covered under NDI/ENDI, which allows these deductions to build the employees SDI account.
From July 1, 2025, to September 30, 2025, BU 10 employees may elect to switch between either program, annual leave or vacation/sick leave, regardless of when their prior election was made.  The SDI program has two components – Disability Insurance (DI) and Paid Family Leave (PFL). An employee cannot receive both DI and PFL simultaneously.
The DI program provides benefits to eligible employees who have a loss of wages when they are unable to work due to a non-work-related illness, injury, or pregnancy.  Benefits under DI are paid up to 52 weeks.
The PFL program provides benefits to eligible employees who need to take time off to care for a seriously ill child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner, or to bond with a new child or a child in connection with adoption or foster care placement. PFL is limited to an eight-week paid benefit within a 12-month period.
Additionally, the PFL program includes time off to participate in a qualifying exigency related to the covered active duty or call to covered active duty of the employee’s spouse, domestic partner, child or parent in the Armed Forces of the United States, as specified. This leave allows for the preparation of deployment for qualifying reasons, which are found in the Unemployment Insurance Code section 3302.2. Additional information on exigency leave may also be found in policy 2107 - Family Medical Leave Act / California Family Rights Act.
There are several components related to the SDI program as outlined below.
Leave of Absence Requirements
An employee is required to obtain an approved leave of absence from their human resources (HR) office. A leave is granted when the employee has a necessary absence from duty due to a DI or PFL reason. A physician’s or licensed practitioner’s medical certification is required in order to substantiate the leave of absence request. The medical certification shall include the anticipated length of the employee’s absence, any restrictions upon returning to work that prevent the employee from performing the full range of his or her normal duties, and any anticipated future absences.
An employee who requests leave for a qualifying exigency must provide a copy of the covered active-duty orders or other documentation issued by the military that indicates that the employee’s eligible family member is on covered active duty or called to active duty, and the dates of the covered active-duty service.
The employee’s request for leave shall include whether or not they are planning to file for SDI, the begin and end dates of the anticipated leave and a telephone number where the employee can be reached.
If the HR office receives notification from EDD that an employee has filed a claim for SDI benefits, and the employee has not requested a leave of absence (LOA), the employer will notice the employee requesting that they apply for a leave of absence. While the employee is off work for a LOA reason, they may be placed on temporary leave status until the LOA request is received and approved. A leave of absence is the mechanism used for employment history purposes.
If the qualifying injury, illness, or exigency continues beyond the expiration date of the SDI benefits, the leave of absence may be extended. An employee’s leave of absence is terminated either (1) on the expiration date of the leave, or (2) by the employee when they become medically certified to return to full employment.
Upon termination of a leave, a permanent or probationary employee has a right to their former position, as defined by Government Code section 18522.
Waiting Period/Leave Credits
DI requires the employee to serve a waiting period of seven calendar days in which the employee has the option to use accrued vacation, annual leave, compensating time off (CTO), holiday credit, personal leave (PLP/VPLP), or sick leave balances per the provisions of the Memorandum of Understanding (MOU).
During a waiting period, the employee may use available leave credits, be placed on an unpaid leave, or use a combination of leave credits and unpaid leave. If the employee elects to use leave credits, the employee’s leave of absence status will begin on the day the use of leave credits end.
Leave Supplementation
Current agreements between the state and various bargaining units allows for supplementation of up to 40 hours of accrued leave credits per month while receiving SDI benefits.  Leave credits that can be used to supplement are vacation, annual leave, CTO, holiday credit, furlough, PLP/VPLP, professional development days (PDD), and sick (for approved sick leave reasons only). The leave credits combined with SDI benefits cannot exceed the employee’s monthly gross salary.
The employee must notify the employer of their election to supplement SDI benefits with the use of leave credits and the number of hours of leave credits to be charged each month (up to 40 hours maximum, the 40 hours does not include the hours used during the waiting period). The use of leave credits beyond the waiting period may impact the employee’s SDI benefit.
Family Medical Leave Act (FMLA) and California Family Rights Act (CFRA)
Employees who are approved to receive SDI benefits are typically eligible for FMLA/CFRA benefits. If the employee elects to submit a certification for the need to take FMLA/CFRA and it is approved, the FMLA and/or CFRA benefits may run concurrent with the SDI benefits.  Please see the appropriate Policy Statements for other leaves which may run concurrent with SDI benefits.
Health Insurance Coverage
Pursuant to MOU provisions, the state will continue up to 26 weeks of health, dental, and vision coverage while the employee is receiving SDI benefits.  When an employee's leave has been designated FMLA/CFRA, the employer is required to continue up to 12 weeks of the same benefits.  The benefit continuation requirement under Pregnancy Disability Leave (PDL), FMLA, and CFRA run concurrent with the SDI provisions of the MOU.  Reference the applicable Policy Statement for information on those leaves.
If the employee chooses to supplement their SDI with up to 40 hours of leave credits, their health, dental, and vision premiums will be deducted from the supplementation pay.  In the event the employee elects not to supplement their SDI with the use of leave credits, SCO will set up an accounts receivable for the employee’s portion of the health benefits premium after the employee returns to work. If the employee does not return to work after the 26 weeks, in order to continue the health benefits, the employee would be required to direct pay the provider for both the employee and employer share of the health benefits premiums.
Working While Receiving SDI Benefits
When medically certified, an employee may work reduced hours while receiving SDI benefits.
When a full-time employee physically works and/or uses leave credits for 11 or more days (or part-time equivalent) in the pay period, the pay period is qualifying. A qualifying pay period provides the employee leave and state service accruals. When combined, time worked and the SDI benefit amount cannot exceed the employee’s total regular gross salary. If the time worked, plus the SDI pay, exceeds the total gross salary, the SDI benefit may be reduced. Payment of leave credits and/or time worked is considered regular pay, and subject to mandatory and voluntary deductions. Voluntary deductions will be deducted from regular pay unless cancelled by the employee. There must be sufficient net pay to take the deduction(s). The employee is responsible for canceling and reestablishing voluntary deductions and making direct payments to the carrier(s). The employees' union dues/fair share fees will be withheld while the employee is on pay status. Union dues/fair share fees will not be withheld while on a leave of absence (not receiving pay). The employee may elect to pay union dues/fair share fees directly to his or her union.
Workers’ Compensation
When an employee files a claim for a work-related injury, they may be eligible to receive SDI benefits while waiting for the claim to be approved.  SDI benefits may also be provided if the worker’s compensation benefit is less than the SDI benefits.
Various Leave Programs with SDI
Below are various leave programs with definitions and timeframes that coordinate with the SDI program and how they interact with each other.
LOA
Leave of Absence - Up to one year.
FMLA
Family Medical Leave Act – 12 weeks of job protected coverage in a 12-month period for employee’s own illness; family members’ illness; bonding; or military exigency leave; or 26 weeks for military caregiver leave.
CFRA
California Family Rights Act – 12 weeks of job protected coverage in a 12-month period for employee’s own illness; family members’ illness; bonding; or qualifying exigency.
PDL
Pregnancy Disability Leave – Up to a maximum of 17.33 weeks for a pregnancy disability/birth.
DI*
Disability Insurance  – Up to 52 weeks.
PFL*
Paid Family Leave  – 8 weeks in a 12-month period.
Health Care Benefits **
Health Care Benefits – Up to 26 weeks of employer-covered health care benefits per the SEIU MOU. (Employee must have an approved SDI claim.)
* DI and PFL = SDI Program
** Per the MOU for SEIU-represented employees, the employer is required to continue paying for health care benefits for up to 26 weeks.
Application
Not Applicable.
Authorities
Bargaining Contracts - MOUs
Unemployment Insurance Code sections 3300 to 3308
Resources
Web Pages
Employment Development Department: Paid Family Leave
: Employment Development Department: Paid Family Leave
Employment Development Department: SDI for State Employees
: Employment Development Department: SDI for State Employees
Payroll Procedures Manual
: State Controller's Office PPM
SCO PPM section E
: Disability
Authorized By
Melissa Russell
Chief
Personnel Management Division
Contact Person
Personnel Services Branch
Personnel Program Consultant
, Personnel Services Branch
Email:
psb@calhr.ca.gov
Superseded Policies
Not Applicable.
History
View History
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Table of Contents
Expand All
1000 - Equal Employment Opportunity
1001 - Equal Employment Opportunity (EEO) Officer Role
1002 - Nondiscrimination Statements
1003 - Bilingual Services
1004 - Reasonable Accommodation for Pregnancy, Childbirth, or Related Medical Condition
1005 - Upward Mobility Program
1007 - Monitoring Qualifications Appraisal Panel Composition
1009 - Employee Demographic Data Collection
1010 - Discrimination Complaint Tracking System (DCTS)
1100 - Selection
1102 - Limited Three-Rank Model
1103 - Human Resources (HR) Liaison Training
1105 - Eligibility Withhold Process
1106 - Job Analysis (JA)
1107 - Limited Examination and Appointment Program (LEAP)
1108 - Steps in the Selection Process
1109 - Policy Resolution Process
1200 - Appointments
1201 - Student Assistants
1203 - Career Executive Assignments (CEA)
1204 - Nepotism
1205 - Military Seniority
1206 - Retired Annuitants
1207 - Hiring Preference for Student Assistants and Internships
1208 - Promotions in Place
1209 - Casual Employment
1210 - Special Consultant
1211 - Criminal History Background Checks
1212 - Temporary Appointments (TAU)
1213 - Unlawful Appointments
1214 - Extension of Probationary Periods
1215 - Rescinding a Job Offer/Refusing to Employ a Person Who Has Accepted an Offer of Employment
1216 - Non-testing Classifications
1217 - Intermittent Employees
1218 - Additional Appointments
1300 - Exempt Employees
1301 - Exempt Employee Salary
1302 - Exempt Lump Sum Payments
1303 - Exempt Out of Class Assignments
1400 - Benefits and Insurance
1401 - Health Benefits
1402 - Affordable Care Act
1403 - Dental
1404 - Vision
1405 - Domestic Partners
1406 - Consolidated Benefits (CoBen)
1407 - FlexElect
1408 - Consolidated Omnibus Budget Reconciliation Act (COBRA)
1409 - Health and Wellness
1410 - State Disability Insurance (SDI)
1411 - Non-Industrial Disability Insurance (NDI)
1412 - Industrial Disability Leave
1413 - Group Long Term Disability Insurance
1414 - Temporary Disability
1415 - Workers' Compensation
1416 - Workers' Compensation Administrative Time Off
1417 - Workers' Compensation Liability Between Departments
1418 - Employee Assistance Program
1419 - Group Legal Services Insurance
1420 - Basic Group Life Insurance
1421 - Supplemental Life Insurance
1422 - Other Post-Employment Benefits (OPEB) Prefunding
1423 - 25-Year State Service and Retirement Awards
1424 - Dependent Re-verification (DRV)
1425 - Bicycle Commuter Program
1426 - Universal Administrative Fees
1427 - Employer Notification Requirements on Premium Assistance Programs
1428 - Employer Notification Requirements – Consumer Coverage Disclosure for Employees in the State of Illinois
1500 - Work Schedules
1501 - Non-Standard Work Schedule Policy for Work Week Group E/SE
1502 - Flexible Work Arrangements
1503 - Alternate Work Week Schedule Policy for Work Week Group 2
1600 - Commute and Parking Programs
1601 - Third Party Pre-Tax Parking Reimbursement Account Program Policy
1602 - Mass Transit Commute Program
1603 - Vanpool Commute Program
1700 - Compensation
1701 - Pay Warrants
1702 - Arduous Pay
1703 - Timely Payment of Wages
1704 - Salary Upon Transfer to a Deep Class
1705 - Safety Footwear
1706 - Managerial Appointments
1707 - Hiring Above Minimum (HAM)
1708 - Computing Overtime
1709 - Seniority Calculations
1710 - Discretionary Salary Action Corrections
1711 - Furlough Program
1712 - Holiday Guidance
1713 - Overtime Compensation (Cash in Lieu of Benefits)
1714 - Part-time Employee Compensation
1715 - Compensation Request Policy
1716 - Timekeeping and Timesheet Submission
1800 - Savings Plus
1801 - Contribution Rates
1802 - Transfer Leave Credits and Catch-Up
1803 - Underfunded Savings Plus Accounts
1804 - Rehired Annuitants
1806 - Part-time, Seasonal, and Temporary Employees Retirement Program (PST)
1807 - Leave Buy-Back, Option to Transfer to Savings Plus 401(k) Plans Enhancement for Fiscal Year 2023/24
1900 - Bona Fide Associations
1901 - Bona Fide Associations Policy
2000 - Collective Bargaining
2001 - Union Notices
2002 - Confidential Designations
2003 - Delegated Agreements
2004 - Union Release Time Bank
2005 - Bulletin Boards
2006 - Decertification
2007 - State Bar Dues
2008 - Personal Services Contract Notices
2009 - Performance Appraisal and Individual Development Plan
2010 - Public Employee Communication
2100 - Leave
2101 - Leave Accounting
2102 - Annual Leave
2103 - Vacation
2104 - Leave Buy-Back
2105 - Sick Leave
2106 - Influenza Season
2107 - Family Medical Leave Act / California Family Rights Act
2108 - Family School Partnership Act
2109 - Holidays for Excluded Employees
2110 - Personal Holidays
2111 - Holiday Informal Time Off (ITO)
2112 - Professional Development Day
2113 - Personal Leave Program (PLP)
2114 - Voluntary Personal Leave Program (VPLP)
2115 - Bereavement Leave
2116 - Catastrophic Leave
2117 - Jury Duty
2118 - Military Leave
2119 - Mentoring Leave
2120 - Pregnancy Disability Leave
2121 - Administrative Time Off (ATO)
2122 - Leave of Absence
2123 - Parr Lawsuit Leave
2124 - Employee Leave Management
2125 - Volunteer Relief Leave Program
2126 - Absence Without Leave (AWOL)
2127 - Covid-19 Supplemental Paid Sick Leave 2022
2128 - National Disaster Medical System Leave
2129 - Reproductive Loss Leave
2130 - Wounded Warriors Transitional Leave Act - Sick Leave
2200 - Travel/Relocation
2201 - Travel and Relocation Policy
2202 - Mileage Reimbursement
2203 - Allowances and Travel Reimbursements
2300 - State Owned Housing
2301 - State Owned Housing (SOH) Policy
2400 - Employee Recognition
2401 - Employee Recognition Policy
2402 - HR Credentialing Program
2600 - Layoffs
2601 - Layoffs
2602 - State Restriction of Appointments (SROA)
2603 - Reemployment
2700 - Retirement
2701 - CalPERS Contribution Rates and Benefit Formulas
2702 - State Safety Retirement
2703 - Peace Officer/Firefighter Retirement (POFF)
2704 - CalPERS 1959 Survivor Benefit Program
2705 - Disability Retirement
2706 - Employer Notification Requirements – Social Security Requirement
2800 - Training
2801 - Leadership Training and Development Requirements
2900 - Workforce Planning
2901 - Workforce and Succession Plan Requirements
3000 - Examination and Hiring
3001 - State Application Filing Guidelines
3002 - Minimum Qualifications (MQs) Calculating Experience & Verification of MQs Prior to Appointment
3003 - Petitions to Participate in Examinations
3004 - Statement of Qualifications
3005 - Using 511B Form
3006 - Examination Announcements and Application Filing Guidelines
3007 - Anonymous Hiring
3100 - Drug-Free Workplace
3101 - Tobacco and Marijuana Use
3200 - Medical Screening
3201 - Controlled Substance Abuse Testing and Treatment Program
3202 - Pre-Employment Medical Examination Selection
3300 - Apprenticeships
3301 - Civil Service Traditional and Non-Traditional Apprenticeship Programs
3400 - Temporary Assignment
3401 - Training and Development Assignment
3500 - Classification Plan
3501 - Establishing and Revising Classification Specifications