California State Disability Insurance and
Your Business
Employers and employees hold many misconceptions surrounding an employer's obligations to an employee who is collecting California state disability insurance (SDI). Here is a breakdown of those obligations according to 2008 California SDI law:
An employer is not obligated to hold a job for an employee simply because s/he is out on disablity leave and collecting SDI.
However, an employee may be subject to protection under other laws, including the Family Medical Leave Act (FMLA), California Family Rights Act (CFRA), Pregnancy Disablity Act, Americans with Disabilities Act (ADA), and Fair Employment, and Housing Act (FEHA). Consider these laws when deciding to put an employee on a leave of absence, terminate, or refuse to reinstate an employee who has been off work on disability leave.
Sick leave benefits may affect California disability insurance eligibility. Disability insurance benefits are normally reduced by the amount of sick pay an employee is receiving.
An employer may integrate sick leave and California state disability insurance payments so that the employee receives their full salary amount between the two sources of income.
The California State Disability Insurance Pamphlet must be provided to all new employees and employees who leave due to a non work-related injury.
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