California
Last Updated: 10/18/2024
California Family and Medical Leave Programs
What is the Update?
California State Disability Insurance (SDI) and Paid Family Leave (PFL)
Update (06/13/24, Effective 01/01/25): The Employment Development Department (EDD) has announced the projected 2025 Maximum Weekly Benefit Amount to remain the same as 2024 which is $1,620 per week. Additionally, while the current wage replacement rates are 60% to 70% of wages, the rates are projected to increase to 90% for lower wage earners and 70% for all other covered workers beginning January 1, 2025. Lastly, the SDI contribution rate is projected to increase to 1.2% in 2025 from 1.1%. As a reminder, the taxable wage ceiling for state disability insurance was removed in 2024 and should remain the same for 2025.
Update (10/18/24, Effective 01/01/25): Governor Newsom recently signed Assembly Bill 2123 (AB 2123). Coming into effect on January 1, 2025 employers will no longer have the ability to require its employees use up to 2 weeks of accrued vacation before utilizing the state’s paid family leave program, or voluntary plan benefits if the employer has an approved plan through the state.
Additionally, Senate Bill 1090 (SB 1090) was signed, which will provide some future changes to the State Disability Insurance (SDI) program. Currently, the California Unemployment Insurance Code (CUIC) requires the Employment Development Department (EDD) to issue the initial payment for a disability or Paid Family Leave (PFL) claim within 14 days of receipt of a properly completed claim. SB 1090 will instead require initial payment within 14 days of receipt of a properly completed claim or as soon as eligibility begins, whichever is later.
The EDD instructs individuals to wait nine days after their disability starts to file their claim. Under SB 1090, individuals will be able to initiate the claims process up to 30 days in advance of the anticipated first compensable day of their claim. Both changes under SB 1090 will become operative when they are incorporated in the EDD’s integrated claims management system as part of the EDDNext project. You can learn more about the project here.
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