E- Employment development department - Branches 1

Disability Insurance Branch

The Disability Insurance Branch has over 1,200 employees organized into a Central Office; a Field Operations Division (with Claims Management Offices and Customer Service Centers); and an Office of the Medical Director. The Branch administers the State Disability Insurance program (which includes Disability Insurance and Paid Family Leave), as well as Non-Industrial Disability Insurance. Among other initiatives, by 2011 the Branch plans to implement a Disability Insurance Automation project for more efficient and effective electronic communications and information processing. The state's legal and regulatory requirements for the Branch's programs are found in the California Unemployment Insurance Code, the California Labor Code, and Title 22 of the California Code of Regulations.

State Disability Insurance (SDI)

The State Disability Insurance (SDI) partial wage replacement benefit program began in California in 1946; in the United States, the only other state and territorial governments that provide disability insurance are those of Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.

With some exceptions, SDI coverage is required "for employees working for employers with payrolls in excess of $100 in a calendar quarter." SDI covers approximately 12.8 million workers in California, who participate either in the State Plan, in Voluntary Plans, or in the Disability Insurance Elective Coverage program:

* The State Plan is administered by EDD and is "financed entirely by California workers through a payroll tax on their earnings." As of 2008, the SDI withholding rate is 0.8% on wages up to $86,698 per employee.
* If an employer and a majority of the employees of a company consent, a private Voluntary Plan "may be substituted for the State Plan if the Voluntary Plan matches the State Plan's benefits, provides at least one greater benefit, and costs the employee no more than the State Plan." Furthermore, "an employee may choose State Plan coverage even though a Voluntary Plan is available where he/she works." Only about 3.8 percent of workers covered by SDI are covered through Voluntary Plans, which the Disability Insurance Branch oversees "to ensure compliance with statute and regulations."
* Self-employed individuals and some other types of workers for whom SDI coverage is not required can choose to participate in the Disability Insurance Elective Coverage program. This program is funded by "employer-paid premiums calculated using a net profit formula." EDD provides "administrative oversight" of this program.

Two types of benefits are available under SDI: Disability Insurance and Paid Family Leave.

* Disability Insurance benefits "are payable when a covered employee suffers a wage loss and cannot work due to pregnancy or illness/injury not related to his/her job." Benefits are calculated to replace about 55% of a worker’s earnings, and (in 2008) range from $50 to $917 per week for a maximum of 52 weeks. For Disability Insurance, in calendar year 2007 EDD processed 742,976 claims and paid over $3.7 billion in benefits.
* Paid Family Leave benefits "are available to persons who take time off work to care for a seriously ill child, spouse, parent, or domestic partner or to bond with a new minor child." In 2002, California was the first state to pass a law requiring the Paid Family Leave program, and as of mid-2008, the only other states that had passed laws to offer paid family leave benefits were Washington and New Jersey. The program "offers up to 6 weeks of benefits in a 12-month period" and "provides benefits of approximately 55 percent of lost wages," ranging "from a minimum of $50 to a maximum of $917 per week for up to six weeks" as of 2008. For Paid Family Leave, in calendar year 2007 EDD processed 183,347 claims and paid over $410 million in benefits.

Nonindustrial Disability Insurance (NDI)

The Disability Insurance Branch administers the NDI program for state employees who are not covered by SDI. The NDI program provides disability insurance benefits similar to SDI's disability insurance benefits, but NDI benefits are payable by the California State Controller for only a maximum of 182 days.

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