California State Disability Insurance

The California state disability insurance is a partial wage replacement programme that makes provision for a short-term benefit to eligible workers in the state of California. These benefits are available when they are unable to work as a result to non work related injury or illness and as such suffering wage loss. Similarly, benefits can also be paid when the worker suffers a medical condition such as child birth or pregnancy.

 In line with the above, if your business operates within California, your employees will qualify for California state disability insurance. The state disability insurance is a programme managed by state of California Employment Development Department (EDD). The CASDI provides partial wage replacement plans to millions of California workers for up to 60-70% before the claim. Those who are eligible are employees in California who are unable to work due or illness or injury.

The funding for the plan comes from deductions from employees’ wages commonly referred as California State Disability Income Tax Employee contribution (CASDI-E). The amount of your contribution depends on wages on the last 18 months. The benefit provided by the scheme is not taxable. However, it does not offer extra job protection for workers. You can receive up to 52 weeks of full disability insurance benefits. And it can as well be an amount of wages in your base period depending on which is less.

Eligibility for California State Disability Insurance Benefits

Furthermore, to be eligible CASDI benefits a worker must:

1. Proof that you have lost wages because of a disability, injury or illness.
2. Your inability to perform your routine work for at least the last eight days prior to the filling of the claim.
3. Be under the care of a licensed physician, medical practitioner or accredited   religious practitioner within the first eight days of disability. However, if the date the claim begins does not meet this particular requirement, I may amenable to changes. Nonetheless, an employee must remain under a physician, practitioner’s or a religious practitioner’s care to remain eligible.
4. Be under an employment or actively seeking employment at the point of the start of the disability.
5. Must have earned a minimum of $300 from which state disability insurance tax deductions were made during your base period.
6. Have your physician/practitioner complete the medical certification portion of the disability claim. Also, a nurse may certify a disability within the scope of his or her practice. On the area of pregnancy or child birth, a licensed midwife, nurse-midwife or nurse may complete the medical certification for claims.
7. Must be able to complete and as well submit the Claim for Disability Insurance benefits no earlier than nine days after your first day of disability but no later than 49 days to in order to remain eligible.
8. In the event you are under the care of an accredited religious practitioner, you must complete and file the claim for disability insurance benefits-religious practitioner’s certificate. This is a document whereby you declare legally that you have met the eligibility requirements to be paid unemployment benefits

Ground for Disqualification from California State Disability Insurance Eligibility

Employees may be disqualified from California state disability insurance eligibility on any of the following grounds:

1. When the disability is a product of commission of crime. In other words, when you sustain injury or serious health condition in the course of committing a crime making you unable to work.
2. When you are in jail, prison, a recovery home or elsewhere because you were convicted of a crime. And as such makes you lose income.
3. In the event you already make claim or receive any unemployment insurance available to people who do not work or you receive Family Leave (PFL) benefits.
4. When you neglect or refuse to undertake an independent medical examination when asked to do so.
5. If you are receiving workers’ compensation benefits at a weekly rate equal to or greater than the California state disability insurance rate of benefits.

Employer’s responsibilities under CASDI)

The California State Disability Insurance’s (CASDI) funding comes from withholding employee’s incomes. Similarly and in addition to this, employers are responsible for withholding CASDI contributions from their employees’ pay and sending these funds to the California Employment Development Department (EDD). 

In addition to the above responsibilities, Employers should endeavour to provide employees with information about employment laws and regulations. They should also provide information about their entitlement to certain workplace standards, working conditions and benefits. Employers can do so by posting the following documents in the workplace:

1. Notice on Paid Family Leave Benefits (DE 2511)
2. Also, Notice to Employees: Unemployment Insurance/Disability Insurance/Paid Family Leave (DE 1857A) or Notice to Employees (DE 1858) and;
3. Notice on Disability Insurance Provisions (DE 2515)

Cancellation of California State Disability Insurance

Employers are at liberty to cancel their CASDI. However, they must make provision for but the private plan arrangement must be:

1. Capable of providing all the benefits offered by California State Disability Insurance;
2. Have one additional benefit to the California state disability insurance in the minimum
3. The cost must be lower or equal to that provided by CASDI
4. Get an approval of a getter percentage of the employees in its employment.

Self-employed individuals, independent contractors and business owner

The California state disability insurance does not cover Business owners, self-employed individuals and independent contractors. However, they have the options of getting disability and PFL coverage through, the Disability Insurance Elective Coverage program.