Updates and changes are expected to impact California’s State Disability Insurance (SDI) program, incorporating alterations for Paid Family Leave (PFL) benefits. This program allows wage replacement benefits for employees that have taken necessary time off due to specific reasons. Governor Gavin Newsom passed SB 951 in September 2022 which brought significant changes to the existing program. The law extended the increased SDI benefit percentage levels from 2018 up to 60%-70% of Average Weekly Wages until the end of 2024. Starting January 1, 2025, wage replacement rates will elevate to 90% for low-wage workers, which will be restricted to the maximum workers’ compensation temporary disability indemnity weekly benefit amount. These changes apply to workers earning 70% or less of the state average weekly wage.

In contrast, SB 951 has offered alternative advantages where some employers may opt out of the state-run program to implement a private Short-Term Disability plan or Voluntary Plan (VP). The VP has customized options to offer higher benefits or reduced employee contributions than demanded by the state program. Notably, the VP can put a maximum annual wage limit which restricts the total contribution amount that employees have to pay into the disability plan.

Whether you are an employer or an employee, adapting to these changes may require direct communication with relevant public offices to clarity and address questions. Knowing the key SDI contact can be essential. If you need direct contact with SDI within this context, eddcaller.com provides a comprehensive guide on how to contact SDI. This can be an invaluable resource to navigate the changes with adequate support and the right information.