Governor Brown recently signed legislation that will increase California’s State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits by the year 2018.
State Disability Insurance and Paid Family Leave are both wage replacement mechanisms that are managed by the State of California’s Employment Development Department, affectionately known as the EDD. While each provides short-term benefits for individuals who experience a loss of wages, the duration of eligibility for benefits and the eligibility reasons for each program differ.
Currently, an eligible individual for SDI or PFL can receive up to 55% of the earnings shown in the highest quarter of a qualifying base period, subject to a 7-day non-payable waiting period. The base period, which is determined by the date of your claim, covers 12 months and is divided into four consecutive quarters. Governor Brown’s bill will increase the percentage of wage replacement in both State programs to 70% for low wage earners and 60% for workers who receive a higher salary.
With the increase to the wage replacement amount will come an increase to the amount deducted from employee paychecks, which is what funds the program dollars.
To read the full text of the bill, click here.