On September 28, 2024, California Governor Gavin Newsom signed SB 1090 into law, introducing significant updates to the state’s disability insurance (“SDI”) and paid family leave (“PFL”) programs. These changes aim to enhance benefits for workers while streamlining the claims process.
Key Updates
- Advance Filing of Claims: Workers can now file claims for SDI or PFL benefits up to 30 days before the first compensable day of their disability or leave.
- Faster Benefit Payments: The Employment Development Department (“EDD”) must issue payments within 14 days of receiving a properly completed claim, or as soon as the claimant becomes eligible, whichever occurs later.
- Increased Wage Replacement Rates: Starting January 1, 2025, eligible workers will see wage replacement rates increase from the current 60-70% to 70-90%, depending on their earnings.
Benefit Adjustments
Under the new law, weekly benefit amounts are calculated based on a worker’s earnings during the highest-paid quarter of their disability base period:
- Earnings below $722.50: A flat weekly benefit of $50.
- Earnings above $722.50 but ≤ 70% of the state average quarterly wage: A weekly benefit of 90% of the worker’s highest-quarter earnings, divided by 13, capped at $1,620 (2024 maximum).
- Earnings exceeding 70% of the state average quarterly wage: A weekly benefit of 70% of the highest-quarter earnings, divided by 13, or the maximum weekly benefit amount ($1,620 in 2024), whichever is higher.
Implementation Timeline
The updates related to filing timelines and payment processing will take effect once the EDD incorporates them into its integrated claims management system.
What Employers Should Know
While these changes do not require immediate employer action, employers may receive questions from employees about the new provisions. Employers should familiarize themselves with the updated benefits to provide accurate guidance and support.
Staying Informed
As the EDD implements these updates, we will monitor developments and share further information as it becomes available.
Additional Resources
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