California State Disability Insurance (SDI) and Paid Family Leave (PFL)

Update (05/28/26, Effective 01/01/27): The EDD has released their projected 2027 SDI Contribution Rate to increase to 1.4% (from 1.3% in 2026) and the Maximum Weekly Benefit Amount to increase to $1,791 (from $1,765 in 2026). Wage replacement rates remain at 90% for lower wage earners and 70% for all other covered workers and we don’t anticipate any changes to this rate. We will provide another update once the rates have been confirmed closer to year end, but you can view the forecasted report here.

Update Effective 07/01/28: Governor Newsom signed SB 590 to align the state’s Paid Family Leave (PFL) program, which is part of the State Disability Insurance program, with the CFRA. This means as of July 1, 2028, employees will be able to claim PFL benefits when time off is needed to care for a seriously ill designated person. “Designated Person” means any care recipient related by blood or whose association with the individual is the equivalent of a family relationship. Employees will be required to identify the designated person and attest to how the individual is related by blood to the employee or how the individual’s association with the designated person is the equivalent of a family relationship. This change brings PFL benefits up to speed with more recently implemented state paid family and medical leave programs that include a designated person as a family member. If The Larkin Company administers a Voluntary Plan for you and your California employees, we will update the plan documents with this change for the 2028 plan year.

The DE 2511 brochure for PFL must be provided to employees upon hire and upon learning of an employee’s request to take a leave of absence. Additionally, the SF PPLO employee notice must be placed where employees can easily read it at each job site or workplace.

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SB 590