On September 28, 2024, California Governor Gavin Newsom approved SB 1090, which makes changes to California state disability insurance (SDI) and paid family leave (PFL) benefits.
Summary Overview
- Workers can file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability regarding the claim;
- The Employment Development Department (EDD) must issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of a properly completed claim, or as soon as eligibility begins for the claimant, whichever is later; and
- Workers will be eligible for 70-90% wage replacement (currently 60-70%), beginning January 1, 2025.
Benefit Increase
More specifically, when the amount of wages paid to the individual during the quarter of their disability base period in which their wages were highest:
- Is less than $722.50, then the weekly benefit will be $50.
- Is more than 70% of the state average quarterly wage, then the weekly benefit amount is equal to 70% of the wages paid during the quarter of the individual’s disability base period in which their wages were highest, divided by 13, or the maximum weekly benefit amount set by the Department of Industrial Relations (DIR) annually ($1,620 for 2024), whichever is greater.
- Is more than $722.50, but is 70% or less than the state average quarterly wage, then the weekly benefit amount is equal to 90% of the wages paid during the quarter of the individual’s disability base period in which their wages were the highest, divided by 13, but cannot be greater than the maximum weekly benefit amount set by the DIR annually ($1,620 for 2024).
The new provisions regarding timeframes for filing a claim and for the payment of SDI and PFL will be effective once they are incorporated in the EDD’s integrated claims management system. While there does not appear to be any employer action at this time, employers should be aware of these changes, as they may get questions from employees. Sequoia will continue to monitor this legislation and will provide updates, as appropriate.
Additional Resources
Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.
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