What California State Disability Insurance Covers

California State Disability Insurance (SDI) is a state-run program that pays part of your wages if you cannot work because of a non-work-related illness, injury, or pregnancy. It is not the same as Social Security Disability Insurance (SSDI), which is federal. SDI is funded by payroll deductions from your wages — your employer withholds a small percentage, and you do not pay anything out of pocket to join.

The program covers temporary disabilities that prevent you from doing your job for at least eight days. This includes recovery from surgery, pregnancy and childbirth, serious illness, or injury. It does not cover work-related injuries — those are handled by workers' compensation instead. SDI also does not cover permanent disabilities; if your condition is expected to last longer than one year, you may be able to move to a different program, such as SSDI or Supplemental Security Income (SSI).

The amount SDI pays is based on your recent earnings. The state calculates a weekly benefit amount, which is roughly 55 to 60 percent of your average weekly wage, up to a maximum that changes each year. In 2024, the maximum weekly benefit is $1,540, but your actual payment depends on what you earned in the 12 months before your claim.

Key Takeaways

  • SDI pays part of your wages if you cannot work due to illness, injury, or pregnancy that is not work-related, and you must be unable to work for at least eight days.
  • You are automatically covered if your employer withholds SDI taxes from your paycheck; you do not need to sign up separately.
  • You file a claim with the California Department of Industrial Relations, Division of Workers' Compensation, and the state will contact your doctor to verify your condition.
  • Benefits usually begin after a seven-day waiting period and continue for up to 52 weeks within a 12-month period, depending on your condition.
  • If your disability lasts longer than one year, you may be able to move to a federal program like SSDI instead of continuing with SDI.

Who Is Covered by California SDI

Most employees in California are automatically covered by SDI if their employer withholds the tax from their paycheck. This includes part-time workers, temporary workers, and workers in most industries. You do not have to do anything to enroll — coverage is automatic once your employer starts withholding.

Some workers are not covered. Self-employed people are not covered unless they chose to pay into SDI voluntarily before becoming self-employed. Federal employees, railroad workers, and workers covered by certain other disability programs are also excluded. If you are unsure whether you are covered, you can contact the California Department of Industrial Relations or ask your employer whether SDI taxes are being withheld from your pay.

How to File an SDI Claim

To file a claim, you must contact the California Department of Industrial Relations, Division of Workers' Compensation. You can file online through their website, by mail, or by phone. The state will send you a form called a Claim for Disability Insurance Benefits, which you and your doctor must complete.

Your doctor must fill out a medical certification form that describes your condition and states that you cannot work. The state will not pay benefits without this certification. If you do not have a doctor, you can ask the state to refer you to one, though this may delay your claim. Once you submit the completed forms, the state reviews them and sends you a notice of information within about two weeks, telling you whether your claim is approved.

You must file your claim within 49 days of the first day you cannot work. If you file late, you may lose benefits for the days you waited. If your doctor says you cannot work but you have not yet filed, file when ready — the sooner you submit, the sooner benefits can begin.

When Benefits Start and How Long They Last

SDI benefits do not start when ready. There is a seven-day waiting period from the first day you cannot work. If your disability lasts longer than 14 days, the state will pay you for those first seven days retroactively. If it lasts exactly seven to 14 days, you receive no payment.

Once the waiting period ends, you receive weekly payments. Benefits continue for up to 52 weeks within a 12-month period. The exact length depends on your condition — some people recover in a few weeks, while others need the full 52 weeks. Your doctor's certification determines how long you are expected to be unable to work, and the state pays based on that estimate.

If you return to work before your benefits end, you must report your return date to the state. If you continue to receive benefits after you have returned to work, you will be asked to repay them. Some people can work part-time and still receive partial SDI benefits, but you must report any income you earn.

What Happens If Your Disability Lasts Longer Than One Year

SDI is designed for temporary disabilities. If your condition is expected to last longer than one year, or if you have used all 52 weeks of SDI benefits and still cannot work, you may be able to move to a federal program instead.

Social Security Disability Insurance (SSDI) is a federal program for people with disabilities expected to last at least 12 months. You can file for SSDI while still receiving SDI, and the two programs can overlap for a short time. However, SSDI has a five-month waiting period before benefits begin, so there may be a gap between when SDI ends and when SSDI starts.

Supplemental Security Income (SSI) is another federal program for people with disabilities who have limited income and resources. Unlike SSDI, SSI does not require you to have a work history. If you have never worked much or have been out of work for a long time, SSI may be an option.

How Much You Receive and Tax Implications

Your weekly benefit amount is calculated based on your earnings in the 12 months before your claim. The state divides your total earnings by 52 to find your average weekly wage, then pays you about 55 to 60 percent of that amount. The exact percentage depends on your situation — for example, if you have dependents, the percentage may be higher.

The maximum weekly benefit changes each year. In 2024, the maximum is $1,540 per week. If your average weekly wage is very high, your benefit will be capped at this maximum. The minimum benefit is much lower — usually around $50 per week — and applies if you earned very little in the 12 months before your claim.

SDI benefits are not taxable income for federal or state tax purposes. You do not owe income tax on the money you receive. However, if you have other income during the same year, you may owe taxes on that income.

If Your Claim Is Denied or You Disagree With a Decision

If the state denies your claim, you will receive a written notice explaining why. Common reasons for denial include: the state determined your condition does not prevent you from working, your doctor did not provide adequate medical certification, or you did not file within the 49-day important date.

You have the right to appeal a denial. You must file an appeal within 20 days of the denial notice. The appeal goes to a hearing officer who reviews your case and your medical records. You can represent yourself or bring a lawyer or advocate. Many disability advocates in California offer free or low-cost help with appeals.

If you disagree with the hearing officer's decision, you can appeal further to the Workers' Compensation Appeals Board. This process takes longer but gives you another chance to present your case. Throughout the appeal process, you can continue to work with your doctor to gather additional medical evidence that supports your claim.

Frequently Asked Questions

Can I receive SDI and SSDI at the same time?

Yes, for a short time. SDI and SSDI can overlap while you are waiting for SSDI to be approved. However, once SSDI begins, the Social Security Administration will reduce your SSDI payment by the amount you receive from SDI, so you do not receive double benefits. After SDI ends, you receive only SSDI.

What if I am self-employed?

Self-employed people are not covered by SDI unless they chose to pay into the program before becoming self-employed. If you are self-employed and did not pay into SDI, you cannot file a claim. You may be able to file for SSDI instead if you have a disability expected to last at least 12 months.

Do I have to tell my employer I filed for SDI?

You do not have to tell your employer, but it is often a good idea. Your employer may need to provide information to the state about your job and earnings. Also, if you plan to return to work, your employer should know your expected return date. Some employers are required by law to hold your job while you are on SDI, depending on the size of the company and how long you have worked there.

What if I start feeling better before my 52 weeks are up?

You must report to the state that you have returned to work or are able to work again. If you continue to receive benefits after you can work, you will be required to repay the money. Some people can work part-time and still receive partial SDI benefits, but you must report any hours you work and any income you earn.

How do I know if I should file for SSDI instead of SDI?

File for SDI if your disability is temporary and you expect to recover within a few months to one year. File for SSDI if your disability is expected to last at least 12 months or if you have already used up your 52 weeks of SDI benefits. You can file for both at the same time — there is no penalty for explore to both programs.