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.

San Francisco Paid Parental Leave Ordinance

Update (08/10/26, Effective 09/07/26): The San Francisco Paid Parental Leave Ordinance (SF PPLO) has been amended to reduce the employment tenure requirement for eligible employees from 180 days to 90 calendar days, effective September 7, 2026. To qualify, an employee must:

– Work at least 8 hours per week and perform at least 40% of their weekly work hours within San Francisco;
– Be eligible for California Paid Family Leave bonding benefits; and
– Have been employed by their current employer for at least 90 calendar days before the leave start date.

The current 180-day employment requirement will remain in effect during the following transition periods:

– Through December 31, 2026, for employers that regularly employ 100 or more employees; and
– Through December 31, 2027, for employers that regularly employ 20 to 99 employees.

After the applicable transition period ends, employers must apply the new 90-day employment requirement. There are no changes to the provisions under the ordinance, but employers should make note of the expanded coverage following the transition periods and update any internal resources. You may view the amended ordinance here.

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