Short Term Disability: What Is It & How Does It Work?

California short-term disability insurance offers wage replacement for eligible workers facing illness, injury, pregnancy, or childbirth. See SDI payments, filing deadlines, paid family leave rules, and pregnancy disability protections in California.

By Brad Nakase, Attorney

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Table of Contents

1. Introduction

2. California’s Short-Term Disability Insurance

3. Paid Family Leave in California

4. California’s Pregnancy Disability Laws

5. California’s Family Rights Act and Family Medical Leave

6. My Employer Isn’t Allowing Me To Take A Leave: What Should I Do?

Introduction

One of the few states with an employee SDI (short-term disability) insurance scheme is California. Workers who are not able to work because of a disability, including pregnancy, can get benefits under the short-term disability program, which is funded by payroll deductions.

This program is sometimes referred to as TDI (temporary disability insurance). TDI and SDI are synonymous in California. For workers who require time off to care for a critically ill family member or to spend time with a new infant, California’s EDD (Employment Development Department) offers PFL (paid family leave).

This post will explain the way SDI benefits operate and go over the California regulations that mandate that your employer grant you time off.

California’s Short-Term Disability Insurance

The majority of California workers are eligible for SDI benefits since a large number of businesses are obliged to take part in the state’s short-term disability insurance program.

1. Who qualifies for SDI?

If you earned at least $300 in salary in the base period from which the SDI taxes were deducted, you are officially eligible for SDI. The base period, which lasts for a year, typically ends right before the final full calendar quarter prior to the filing of a claim. For instance, the base term is the entire 2025 if you submit your claim in April 2026.

If you have a condition that prevents you from working and you have lost money as a result, you are legally eligible for SDI. However, you will not be compensated for the initial 7 days of your leave of absence because they are a waiting period. This “SDI elimination phase” is used by the EDD to ensure that only workers who are gravely ill or wounded are eligible to receive benefits from the SDI program.

2. Does California Allow Self-Employed Workers to Receive SDI?

For independent contractors, freelancers, and business owners who do not contribute to the employee SDI program, California offers an optional DIEC (Disability Insurance Elective Coverage) program. These independent contractors can receive paid family leave or disability leave by paying premiums.

The DIEC program’s weekly benefit payments for claims for disability are identical to those for SDI claims; however, your payments are determined by the net earnings that you previously reported to the IRS. The maximum weekly compensation amount for DIEC in 2026 is $1,765.

3. Duration of benefits for temporary disability in California

California will provide short-term disability benefits for a maximum of 52 weeks to workers if they are unable to remain at work for that duration. However, benefits for self-employed individuals who contribute to the DIEC program are only available for 39 weeks.

Keep in mind that you cannot simultaneously receive SDI payments & any of the following:

Paid family leave benefits
Unemployment benefits, or
Benefits for temporary disability in California from the workers’ compensation program.

Long-term disability insurance is not offered by the State of California, but if you have been disabled for a year or longer, you may submit a request for Social Security disability payments or, if you have an employer-sponsored long-term disability coverage, file a claim.

4. How Much Does California’s SDI Pay?

You will get benefits every 2 weeks if the EDD finds that you qualify for SDI. The amount of your benefit will be determined by your earnings in the base period. Depending on the income level, SDI pays between 70% and 90% of the wages you earned during the base period’s highest-paid calendar quarter. However, since this sum is tax-free, you should receive more than 70% to 90% of your regular take-home pay.

The EDD will deduct any earnings you make while receiving SDI from your benefits. See our post on figuring out your CA SDI benefit for more information.

5. How Can I Apply for Short-Term Disability in California?

Both online and print filing are now available through the EDD. It’s easy to file a request for payments for temporary disability in California, but it is essential to get all the dates and amounts right. If you commit a mistake, fixing it may require numerous phone calls or trips to the EDD office.

The documentation is usually provided by your company or your health care professional (especially if you are a member of an HMO); your health services provider will need to fill out a portion of the form.

To receive payments for temporary disability in California, you have to:

Submit a claim to the EDD (Employment Development Department) of the state. You risk losing your eligibility for benefits if you don’t do this within 7 weeks of being unable to work.
As part of the application form, submit a medical document of incapacity that has been signed by a physician, other authorized healthcare provider, or a religious practitioner.

After filing a claim, the majority of SDI benefits begin within two weeks. If the EDD has any inquiries concerning your claim, they might get in touch with you.

Paid Family Leave in California

Under the PFL (paid family leave) program, California workers can earn monetary benefits for time off spent tending to a critically ill family member or spending time with a new infant. The criteria for obtaining PFL are comparable to those for obtaining SDI for a disability: There is no longer a 7-day waiting time before receiving paid leave benefits.

Similar to SDI, your benefits will typically be between 70% and 90% of your base period earnings in the highest-paying quarter. Workers with annual incomes under $62,119 receive a larger portion of their earnings.

California’s Pregnancy Disability Laws

Workers who are not able to work because of a pregnancy or childbirth are eligible for cash compensation under California’s SDI program. For an average pregnancy, the SDI program recognizes a typical period of disability that starts four weeks before the baby is born and lasts for six weeks after the baby is born.

In circumstances of challenging pregnancies or C-sections, additional weeks may be permitted with the appropriate physician certification. However, you must be protected by the following laws to ensure that you will be able to return to work after your absence.

The Pregnancy Disability Leave Legislation of California

California’s FEHA (Fair Employment and Housing Act) mandates that employers permit employees to obtain pregnancy disability leave. It is for the time they are unable to work because of childbirth, pregnancy, & related conditions. California laws forbid discrimination against pregnant employees. Regardless of whether the worker is receiving SDI benefits, they are still entitled to leave.

Employers with at least five workers are required by California’s pregnancy disability leave legislation to allow workers to take a maximum of four months leave for pregnancy and childbirth-related disabilities. The employee may use accumulated paid leave while on leave, but this leave is not required to be paid.

Keep in mind that this is disability leave, not “maternity” leave. In other words, if a worker is able to return to work, employers are not required by law to provide them time off to be with a new child. However, the California Family Rights Act & the federal FMLA (Family & Medical Leave Act) may provide parental leave.

California’s Family Rights Act and Family Medical Leave

Covered employers are required by both federal & California law to offer qualified employees family and medical leave. According to these statutes, companies must offer up to twelve weeks of paid time off to the worker during a twelve-month period to:

Take care of a family member with a critical illness,
Bond with a new kid, or
Manage the worker’s own serious health problem.

Employees may take a maximum of twelve weeks off work annually under the federal Family & Medical Leave Act (FMLA), but this benefit is only available to companies with 50 or more workers.

Most Californian workers are entitled to up to twelve weeks of unpaid vacation from work under the CFRA (California Family Rights Act) to connect with a new child or recuperate from a significant medical condition.

While pregnancy-related time off is covered by the federal FMLA, it is not covered by the California Family Rights Act (CFRA). This establishes a right to additional time off for workers in California.

A California employee may start utilizing CFRA leave for parenthood after taking time off while incapable of resuming employment due to childbirth or pregnancy (up to 4 months), and they will still be eligible for a full 12-week period of leave under the FMLA. In this sense, California is more giving than other states.

Must Read: Kin Care California 2026: Employee Rights, Leave Rules, and Employer Limits

My Employer Isn’t Allowing Me To Take A Leave: What Should I Do?

You might want to speak with an attorney. Your employer has to help you get the time off you deserve. California has several laws pertaining to leave: In addition to offering paid family time off for bonding and paid benefits for disabilities for pregnant workers, the state also has separate legislation concerning family leave and pregnancy disability leave. Additionally, your circumstances may be covered by the federal FMLA.

Employees have a great deal of protection as a result of the numerous leave regulations, but it can be difficult to determine which rules apply to you.

Your employer may not be aware of your leave rights or may not want to respect them, even if you are. Speak with a qualified employment lawyer if you think your employer acts unfairly against you because of your pregnancy, refusing you time leave to which you are legitimately entitled, or attempting to intimidate or dissuade you from using all of your available time.

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Short Term Disability: What Is It & How Does It Work?

Introduction

California’s Short-Term Disability Insurance

Paid Family Leave in California

California’s Pregnancy Disability Laws

California’s Family Rights Act and Family Medical Leave

My Employer Isn’t Allowing Me To Take A Leave: What Should I Do?

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