EDD Disability
What is EDD disability?
EDD disability refers to a disability insurance plan administered by the state of California’s Employment Development Department (EDD). Often called Disability Insurance (DI), or California State Disability Insurance, the plans are designed to offer partial wage replacement to California residents who find themselves unable to work due to a current disability.
These plans are funded by the California State Disability Insurance (SDI) program, which is administered by the EDD.
For state-issued plan purposes, California defines a disability as a physical or mental condition that stops an employee from performing typical job duties.
Employees may need to take time off work due to:
- Injury
- Illness
- Surgery (including elective and cosmetic procedures)
- Pregnancy
- Childbirth
In some ways, Disability Insurance can act as a sort of paid maternity leave.
It’s important to note that EDD disability plans don’t offer job protection. While this benefit may be obtained through other programs (such as the Family and Medical Leave Act), EDD disability insurance plans provide monetary compensation only.
Most employees can’t opt out of paying into the EDD disability benefit program. The only exceptions are:
- If an employer applies for approval of a voluntary plan to replace SDI coverage,
or
- If the employee is a member of a religious sect, denomination, or organization in which basic tenets require full dependence on prayer for healing.
What is State Disability Insurance (SDI)?
The California State Disability Insurance (SDI) program is funded by payroll deductions, with no employer contribution. It provides short-term Disability Insurance (DI) and Paid Family Leave (PFL) wage replacement to workers that need time off under certain conditions. For example:
- It applies when the employee isn’t able to work due to a non-work-related injury, illness, or condition that prevents them from doing their job.
- It also covers those who need to care for a new child or sick or injured family member, or those who have a loved one being deployed overseas.
- It typically pays 70% to 90% of their average wages for up to 52 weeks of having a disability.
SDI looks at the employee’s base period to work out their disability benefits. This is a 12-month timeframe, concerning what the employee earned in the period between 17 months and five months before the disability started. To qualify, the employee must have earned at least $300 and paid SDI taxes on it.
Disability Insurance
An employee may be eligible for DI if they are unable to work due to a non-job-related injury or illness, or pregnancy or childbirth. Your employee may qualify to receive DI payments and EDD disability benefits if certain conditions are met:
- The claim must be filed between day nine and day 49 of disability onset.
- The claim isn’t complete until a licensed health professional completes a medical certification.
- If an employee files late, a claims analyst will review the case to determine eligibility.
Paid Family Leave (PFL)
California’s State Disability Insurance program also provides for employees who don’t have a disability but need to take time off work to care for a loved one. This may include:
- Immediate family
- Registered domestic partner
- Members of their family of origin
- In-laws
- Grandparents
- Grandchildren
An employee may also qualify for Paid Family Leave if a loved one in the military is being deployed to another country, or if they need time off to bond with a child who has just entered the family through birth or other legal means.
Payments will vary based on how much an employee made in their base period.
Who can qualify for the EDD disability program?
To qualify for the EDD disability program, an employee must suffer from a non-work-related condition that makes them unable to work for at least eight days, and they must prove that they are losing wages because of it.
There are some additional EDD disability requirements outlined by the state of California. The employee must:
- Be employed or actively looking for work when the disability began
- Be a patient under a licensed health professional in the first eight days of their disability. They must remain under care and treatment to receive EDD disability benefits
- Have earned at least $300 and paid SDI deductions on it during a base period
- Not be a school employee on break and/or receiving full wages, unless the employee normally works a job for extra income during those breaks.
Those entering a drug rehab facility may be eligible to receive SDI if the treatment has been recommended by a medical or religious practitioner and isn’t the result of a criminal violation.
Often, an employee doesn’t have to be out of work to qualify for SDI payments. Those who must work reduced hours due to their disability—and have lost wages as a result—could also file a claim to see if they qualify.
Citizenship and immigration status doesn’t impact an employee’s ability to qualify for SDI payments. The employee’s state of residence also doesn’t affect eligibility, as long as they work for a California employer and pay into the CASDI program.
SDI for state employees
SDI works a little differently for state employees and covers only those in bargaining units 1, 3, 4, 11, 14, 15, 17, 20, and 21. Employees in other bargaining units may be eligible for non-industrial disability insurance (NDI), a program specifically reserved for state employees who meet certain coverage requirements.
While nearly all employees pay into this system and qualify for disability, certain workers do not. They can include:
- Some domestic workers
- Independent contractors
- Employees working for a political campaign
- Students who work for the school they attend
EDD disability FAQs
Navigating financial help when they’re unable to work due to a disability can be tough for your employees. So, it’s important for HR professionals to understand where they can offer guidance and support. We’ve answered some common questions surrounding California State Disability Insurance and EDD disability benefits below.
What does EDD stand for?
EDD stands for Employment Development Department. It’s a government agency which provides services to employees and employers in California, including EDD disability benefits.
Does EDD disability pay weekly?
Yes, disability insurance is paid weekly. The weekly benefit amount will depend on the employee’s annual income, and it’s calculated using a base period.
How long does EDD disability take?
According to the EDD, most benefit payments are issued within two weeks after it’s received an accurately completed form. To help speed up the process, ensure that all the information you submit is correct.