What Cal Disability Is and Who It Covers

California Disability Insurance (SDI) is a state-run insurance program that replaces part of your wages if you cannot work because of a non-work-related illness, injury, or pregnancy. It is not the same as federal SSDI. SDI is funded by payroll deductions from your paychecks — your employer withholds a small percentage of your wages and sends it to the state. You do not pay a separate premium.

To be covered by SDI, you must have worked in California and had SDI deductions taken from your pay. Most employees are automatically enrolled. If you are self-employed, you can choose to participate. Unpaid family members, federal employees, and railroad workers are not covered by SDI.

SDI pays benefits for up to 52 weeks in a 12-month period. The amount you receive is based on your average earnings during a base period — typically the first four of the five calendar quarters before you file your claim. The state calculates a weekly benefit amount, which is roughly 55 to 60 percent of your regular weekly wage, up to a maximum that changes each year.

Key Takeaways

  • SDI is funded by deductions from your own paychecks, not by taxes on your employer alone, and covers non-work-related disabilities lasting at least eight days.
  • You must file a claim with the California Department of Industrial Relations within 49 days of the date you stop working, or you may lose benefits for that period.
  • Your doctor must certify that you cannot perform your regular work, and the state may request medical records or schedule an independent medical exam.
  • SDI benefits are taxable income on your federal return, and receiving SDI does not automatically may have access to you for Medicaid or other means-tested programs.
  • If you return to work part-time or earn money while on SDI, your weekly benefit is reduced by the amount you earn above a small threshold.

How to File a Claim and What Documents You Need

You file an SDI claim with the California Department of Industrial Relations, Division of Workers' Compensation (now part of the Department of Industrial Relations). You can file online through the state's website, by mail, or in person at a local office. The online portal is the fastest route and gives you a confirmation number when ready.

When you file, you will need your Social Security number, driver's license or ID, the date you stopped working, and your employer's name and address. You will also need to provide medical information — the name of the doctor or clinic treating you, the date of your first visit for this condition, and a description of why you cannot work. Your healthcare provider must complete a medical certification form (DE 2501) that states the nature of your condition and the expected duration of your disability.

The state has 49 days from the date you stop working to receive your claim. If you file after that window, you lose benefits for the days you waited. Once the state receives your claim, it typically takes two to three weeks to process. During that time, the state may request additional medical records or schedule you for an independent medical examination (IME) with a doctor of their choosing.

What Conditions may have access to and What the State Needs to Approve Your Claim

SDI covers disabilities caused by illness, injury, or pregnancy — but not disabilities caused by work. If your condition arose on the job, you file for workers' compensation instead. SDI also does not cover disabilities lasting fewer than eight days, unless you are hospitalized overnight.

The state approves your claim if a licensed physician certifies that you cannot perform your regular work due to the medical condition you reported. "Cannot perform your regular work" means you are unable to do the job you held before you became disabled — not that you cannot work at all. If you can do a different job, even part-time, the state may deny your claim or reduce your benefit.

The state's medical reviewer will examine your doctor's certification and any records you submit. If the reviewer believes your condition does not prevent you from working, they may request an IME. That exam is free to you, but you are required to attend. If you miss the appointment without a valid reason, the state may deny your claim. If the IME doctor disagrees with your treating physician, the state makes the final decision based on all available medical evidence.

How Much You Receive and How Long Benefits Last

Your weekly benefit amount is calculated from your earnings during your base period. The state divides your total earnings in that period by the number of weeks worked and then pays you roughly 55 to 60 percent of that average, up to a maximum weekly amount. The maximum changes each year — in 2024, it was $1,540 per week, but you should check the current year's rate on the state website.

If you earned very little during your base period, you may receive a minimum weekly amount, which also changes yearly. Part-time workers, seasonal workers, and people who recently entered the workforce often receive lower weekly benefits because their base-period earnings are lower.

You can receive SDI for up to 52 weeks in a 12-month period. The 12-month period is measured from the date you first become disabled, not from the date you file. If your disability lasts longer than 52 weeks, SDI ends, though you may be able to file for federal SSDI if your condition is expected to last at least 12 months or result in death.

How Earning Money While on SDI Affects Your Benefit

If you return to part-time work or earn any income while receiving SDI, your weekly benefit is reduced. The state allows you to earn up to a small threshold — currently $75 per week — without a reduction. Any earnings above that threshold reduce your benefit dollar-for-dollar.

For example, if your weekly benefit is $800 and you earn $200 per week, the state subtracts $75 (the threshold) from your earnings, leaving $125. Your benefit is then reduced by $125, so you receive $675 that week. You must report all earnings to the state, even if they are below the threshold.

This rule exists to encourage people to return to work gradually. If you are unsure whether a particular job or income source counts toward the earnings limit, contact the state before you start working. Some types of income — such as unemployment benefits or workers' compensation — may not count as earnings for SDI purposes, but you should verify this with the state.

How SDI Interacts with Other Programs and Tax Treatment

SDI benefits are considered taxable income on your federal tax return. The state does not withhold federal income tax automatically, so you may owe taxes when you file. You can request that the state withhold federal tax from your benefit payments if you want to avoid a large bill at tax time.

Receiving SDI does not automatically make you may be able to access for Medicaid, CalFresh (food information), or other means-tested programs. However, if your income drops below the threshold for those programs because you are receiving SDI instead of your regular paycheck, you may become may be able to access. You must explore separately for each program.

SDI and federal SSDI are separate programs. You can receive both, but the federal program will reduce your SSDI benefit by the amount of your SDI benefit if you receive both in the same month. If your disability is expected to last longer than 52 weeks, you should consider filing for SSDI while you are still receiving SDI, because the process process takes several months.

If you receive workers' compensation benefits for a work-related injury, you cannot receive SDI for the same period. The two programs do not overlap.

What Happens If Your Claim Is Denied or You Disagree With a Decision

If the state denies your claim, you receive a written notice explaining the reason. Common reasons for denial include: the state believes you can still perform your regular work, your condition does not meet the definition of disability, you did not file within 49 days, or your medical certification is incomplete.

You have the right to appeal a denial. You must request an appeal within 20 days of the denial notice. The appeal goes to a hearing officer who reviews your case and your medical evidence. You can represent yourself or bring a representative — an attorney, union representative, or other advocate. The hearing is usually held by phone or video conference.

If you disagree with the hearing officer's decision, you can appeal further to the Workers' Compensation Appeals Board. This second appeal is more formal and may require an attorney. Many disability advocates and attorneys work on contingency, meaning they take a percentage of any back benefits you win rather than charging an upfront fee.

Frequently Asked Questions

Can I receive SDI if I quit my job because of my medical condition?

Yes, if you have a medical reason for leaving work. You must have a doctor's certification that your condition prevented you from continuing to work. The state will review whether the condition was serious enough to justify quitting, and they may request medical records from before you left.

What if my employer says I am not may be able to access for SDI because I am part-time or temporary?

Your employer's classification does not determine SDI coverage. If SDI deductions were taken from your paychecks, you are covered, regardless of whether you are part-time, temporary, or seasonal. File your claim directly with the state.

Do I have to repay SDI benefits if I return to work sooner than expected?

No. SDI is an insurance benefit you have already paid for through payroll deductions. If you recover faster than anticipated, you straightforward stop receiving benefits. You do not owe the state any money back.

Can I receive SDI while I am waiting for a workers' compensation decision?

No. If your disability is work-related, you must file for workers' compensation, not SDI. If you file for SDI and later the state determines your condition was work-related, your SDI claim will be denied or closed, and you will be directed to workers' compensation instead.

What happens to my SDI if I move out of California?

You can continue to receive SDI benefits even if you move out of state, as long as you remain disabled and meet all other requirements. You must notify the state of your address change and continue to report any earnings or changes in your condition.