California

Understanding paid leave

California provides paid medical leave (PML) and paid family leave (PFL) income replacement benefits for eligible workers who need time off from work for qualifying reasons. The PML program is referred to as the California State Disability Income (SDI) program. The PFL program is called California Paid Family Leave (CA PFL).

California SDI and PFL: Coverage and cost

Learn about your state rules and eligibility.

Coverage options

State plan: Provides a baseline of benefits that all covered employers must offer.

State-approved private plans: Option to offer an approved private plan that must be approved by a majority of employees and meets or exceeds state benefits.

Employer coverage

All private sector employers with California employees.

Employee eligibility

Employees must have contributed to the PML program and earned at least $300 in gross wages during the base period during which PML deductions were taken.

Leave reasons

PML: Employee's own serious health condition.

PFL: Care of a family member, bonding, qualifying military exigency and caring for a service member.

Job protection

California PFML does not provide job protection.

PFML benefits

Benefit percentage:

  • For employees who earn less than $722.50 in the quarter, the benefit will be $50.
  • For employees who earn 70% or less of the State’s Average Quarterly Wage (SAQW*), they will receive 90% of the wages paid, not to exceed the maximum weekly benefit.
  • For employees who earn more than 70% of the SAQW, they will receive 70% of wages paid, not to exceed the maximum weekly benefit.
*SAQW = State Average Weekly Wage (SAWW) X 13

Maximum weekly benefit: $1,680.

Paid Medical Leave:

  • Waiting period: 7-day waiting period.
  • Maximum duration: Capped at 52 weeks of benefits.

Paid Family Leave:

  • Waiting period: No waiting period is required for PFL, but the employer may require that employees use two weeks of vacation/PTO (not including sick leave) before receiving PFL benefits.
  • Maximum duration: Capped at 8 weeks of benefits.

Cost

Employee: 1.2% of taxable wage base.

Employer:

  • Employer may elect to pay all or part of the employee contribution.
  • For state-approved private plans, the employer must fund the additional cost if the private plan is greater than the state cost.

Program timeline

July 1, 2004: Effective

January 1, 2025: Employees' benefit percentages will increase. Please refer to PFML benefits section under the Benefit percentage header.

Need more information? Visit California’s website for additional details.

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How Colonial Life can help

Colonial Life offers a choice of disability insurance plans that can complement benefits for California and help bridge coverage gaps. Reach out to our sales representatives to learn more about our disability solutions.