Workers in California are covered for Short Term Disability through the State’s Disability Income (SDI) Tax Program.
Some Employers offer a supplemental Short Term Disability coverage to work in conjunction with the State SDI, and many Employers offer Long Term Disability to begin 90 Days after the Injury or Illness. Employers with Employees in other States, will typically provide a Short Term Disability Policy to the non-California Employees that is equal to the California SDI Plan.
SDI has a 7 Day Waiting Period, and pays 55% of Weekly Earnings up to a maximum of $1,067. The Maximum Period that SDI pays is 52 Weeks.
Short Term Disability pays a percentage of an Employee’s salary for a specified amount of time, if they are ill or injured, and cannot perform the duties of their job. Coverage usually starts anywhere from 3 to 14 days after the Employee suffers a condition that leaves them unable to work. Many times, Employees are required to use sick days before short term disability kicks in, if it’s an illness that keeps them out of work for an extended period of time. This is why there is usually a different policy for short term disability for sickness versus an injury.
The typical duration of a Short Term Disability Policy is between 90 and 180 Days, set to coordinate with the Waiting Period on a Long Term Disability Policy.
If you have Employees out of State, you should check with that state about their Short Term Disability options, or purchase a separate plan to be sure.