Sedgwick's short-term disability payments depend on your policy, your state, and how much you earned before you stopped working

Sedgwick administers short-term disability plans for employers across the United States, but Sedgwick itself does not set the payment amount — your employer's plan does. The plan document your employer chose determines what percentage of your regular pay you receive, how long payments last, and whether there is a waiting period before payments begin. Most short-term disability plans through Sedgwick replace between 50 and 70 percent of your weekly wages, but some replace as little as 40 percent or as much as 100 percent.

The actual dollar amount you receive depends on what you earned before your disability began. If your plan replaces 60 percent of your weekly pay and you normally earned $1,000 per week, your weekly benefit would be $600. Sedgwick calculates this based on recent pay stubs or tax records, depending on what your employer's plan requires. Some plans also have a maximum weekly benefit — for example, a plan might pay 60 percent of your wages but never more than $1,500 per week, regardless of how much you earned.

Key Takeaways

  • Your employer chose the payment percentage when they set up their plan with Sedgwick, so the rate varies by company and is not the same across all employers.
  • Most plans replace 50 to 70 percent of your regular weekly wages, calculated from recent pay stubs or tax information.
  • Many plans include a maximum weekly benefit cap, meaning you will not receive more than a set dollar amount even if your normal pay is higher.
  • Waiting periods (often called elimination periods) typically range from zero to 14 days, meaning you may not receive payment for the first week or two after your disability begins.
  • Your state's laws may require a higher minimum benefit or affect how Sedgwick calculates your pay if you work part-time or have variable hours.

How Sedgwick calculates your weekly benefit amount

Sedgwick starts with your average weekly wage from the weeks or months before you became unable to work. For most employees, this means looking at recent pay stubs — usually the 4 to 13 weeks when ready before your claim begins, depending on what your plan specifies. If you are paid monthly or have irregular income, Sedgwick may use tax records or annual salary divided by 52 weeks instead.

Once Sedgwick knows your average weekly wage, they multiply it by the replacement percentage in your plan. If your plan says 60 percent and your average weekly wage is $800, your weekly benefit is $480. If your plan has a maximum weekly benefit of $1,200, and your calculation comes to $1,500, Sedgwick pays the $1,200 cap instead. Some plans also have a minimum weekly benefit — for example, a plan might may provide at least $100 per week even if your normal pay was very low.

If you receive other income while on short-term disability — such as paid time off, workers' compensation, or unemployment benefits — your plan may reduce your Sedgwick payment. This is called coordination of benefits. Your plan document will say whether Sedgwick reduces your payment dollar-for-dollar, or whether you can receive both payments in full. Some states prohibit certain reductions, so Sedgwick must follow your state's rules as well as your plan's rules.

Waiting periods and when payments begin

Most short-term disability plans include an elimination period (also called a waiting period), which is the number of days after your disability begins before Sedgwick starts paying. Common elimination periods are zero days, 7 days, or 14 days. During this time, you receive no payment from Sedgwick, though your employer may allow you to use paid time off or sick leave.

The elimination period is part of your employer's plan design, not something Sedgwick chooses. If your plan has a 7-day elimination period and you stop work on a Monday, your first Sedgwick payment typically covers the week that begins on the following Monday. Some plans count calendar days; others count business days. Check your plan document or ask your employer's benefits team which method applies to you.

Once the elimination period ends, Sedgwick usually pays weekly or bi-weekly, depending on your plan. You will receive a payment for each week you remain unable to work and meet the plan's definition of disability. If you return to work part-time, some plans reduce your payment proportionally; others stop payment entirely once you earn any income.

Maximum benefit duration and plan limits

Short-term disability through Sedgwick typically lasts between 12 and 26 weeks, though some plans cover up to 52 weeks. Your employer chose this duration when they designed the plan. Once you reach the maximum number of weeks, Sedgwick stops paying, even if you are still unable to work. At that point, you may be able to move to long-term disability if your employer offers it, or you may need to explore other options such as Social Security Disability Insurance (SSDI).

Some plans also have a maximum total benefit amount — for example, a plan might pay a maximum of $30,000 total, regardless of how many weeks you are out. Once you reach that dollar limit, payments stop. This is less common than a week limit, but it does occur in some employer plans.

How state laws affect your payment

A few states require employers to offer short-term disability or have minimum benefit standards. New York, New Jersey, and Rhode Island, for example, have state-mandated short-term disability or temporary disability insurance programs. If your employer uses Sedgwick to administer a plan in one of these states, Sedgwick must meet the state's minimum requirements, which may be higher than the federal standard.

Some states also regulate how Sedgwick can calculate benefits for part-time workers, gig workers, or people with variable income. If you work irregular hours or have recently changed jobs, ask Sedgwick or your employer's benefits team how your state's rules affect your calculation. Your state's labor department website usually has information about temporary disability or short-term disability requirements.

What to do if you think your payment is wrong

If Sedgwick's payment does not match what you expected based on your normal pay, start by reviewing your plan document. Look for the replacement percentage, any maximum or minimum weekly benefit, the elimination period, and any coordination of benefits language. Then gather recent pay stubs to verify your average weekly wage.

Contact Sedgwick's claims department with your plan document and pay stubs in hand. Ask them to walk you through their calculation step by step. If you disagree with how they calculated your average wage or applied the replacement percentage, ask for a written explanation. If the issue is not resolved, contact your employer's benefits team or human resources department — they can often advocate on your behalf or clarify what the plan actually says.

Frequently Asked Questions

Does Sedgwick pay 100 percent of my salary?

Only if your employer's plan is designed that way. Most plans replace 50 to 70 percent of your weekly wages. Some employers offer a higher percentage for the first few weeks and a lower percentage after that. Check your plan document or ask your benefits team what percentage your employer chose.

What happens to my health insurance while I am on short-term disability?

Your health insurance continues as long as you keep paying your share of the premium. Sedgwick does not handle health insurance — your employer or a separate benefits administrator does. Contact your employer's benefits team to confirm how to pay your premium while you are out of work, since you may not receive a regular paycheck.

Can Sedgwick reduce my payment if I receive unemployment benefits?

It depends on your plan and your state. Some plans reduce short-term disability payments if you receive unemployment, workers' compensation, or other benefits. Others do not. Your plan document will say whether Sedgwick coordinates benefits. If you are unsure, ask Sedgwick directly before you file for unemployment.

What if my short-term disability runs out and I still cannot work?

Once your plan's maximum duration ends, Sedgwick stops paying. If your employer offers long-term disability, you may be able to move to that plan. If not, you can explore Social Security Disability Insurance (SSDI) or other programs. Your state may also have temporary disability or workers' compensation options depending on the cause of your disability.

How long does Sedgwick take to process a claim and start payments?

Most claims are processed within one to two weeks, but it can take longer if Sedgwick needs additional medical records or information from your doctor. Once approved, your first payment usually arrives within one to two weeks after the elimination period ends. Contact Sedgwick if you have not heard back within three weeks of submitting your claim.