Building an Economy that Works for Everyone

Geneanne Franklin: An explanation of California’s State Disability Insurance system

State Disability Insurance (SDI) is a partial, short-term, wage-replacement insurance plan for California workers.

SDI provides coverage for two program components:

  • Disability Insurance provides partial wage replacement benefits for up to 52 weeks per claim
  • Paid Family Leave provides partial wage replacement benefits for up to six weeks (within a 12-month period)

California is one of six U.S. locations with Disability Insurance or Paid Family Leave.

Key points of State Disability Insurance:

  • Provides coverage for approximately 13 million California workers
  • Provides partial wage replacement of approximately 55% of employee’s income
  • Requires employees have qualifying wages in the base period and be in the labor market when the disability or family leave began
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