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

Update (09/09/25), Effective immediately): The EDD has released an updated version of the DE 2511 brochure for the Paid Family Leave program. As a reminder, this brochure should be provided to new hires and those employees who request a leave of absence in order to care for a family member or bond with a new child. If you are a Larkin client and we handle your leave of absence services, we will provide your employees with the updated brochure when they request a leave of absence.

Update (10/27/25, Effective 01/01/26): The EDD has released the final numbers for 2026 for the State Disability Insurance (SDI) program, which includes Paid Family Leave (PFL). The contribution rate will increase to 1.3% from 1.2%, and the Voluntary Plan Assessment Rate of Taxable Wages will increase to 0.182% from 0.168%. The assessment rate is 14% of the SDI contribution rate multiplied by taxable wages.

Update (12/03/25, Effective 01/01/26): The EDD has now released the SDI maximum weekly benefit amount for 2026, which will be increasing to $1,765 per week (from $1,681 in 2025). The State Average Weekly Wage for 2026 has also been confirmed to be $1,789, an increase from the $1,704 in 2025.

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.

San Francisco Paid Parental Leave Ordinance (SF PPLO)

Update (06/11/25, Effective immediately): The OLSE has updated the Paid Parental Leave form that employers must provide to employees when notified of the need for a parental leave. If you are a Larkin client and we handle your leave of absence services, we will provide your employees with the updated brochure when they request a leave of absence.

Update (01/05/25, Effective 01/01/26): Under the SF ordinance, employers are required to supplement an eligible employee’s PFL parental leave benefits up to 100% of an employee’s weekly salary, or a weekly maximum amount that is determined each year by the City, whichever amount is lower. For 2026, this maximum weekly amount will be capped at $2,522. In our book of business, most clients provide salary continuation up to full pay, even if the employee’s salary is above the weekly SF PPLO cap.

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.

Please be sure to adjust your contributions in line with the updates, effective 01/01/26. Additionally, please ensure as a company you are offsetting any salary continuation/company top-up pay aligned with the new maximum weekly benefit rate where applicable, effective 01/01/26.*

*Claims that start in 2025 will be awarded 2025 benefit rates. Claims that begin on or after 01/01/26 will be eligible for the new maximum benefit rate.

SB 1090