Glossary

Term · California: Leave, Money, and Paperwork

Employment Development Department

Also: EDD, California EDD

The California state agency that runs State Disability Insurance and Paid Family Leave, the programs that pay part of your wages when you cannot work.

In plain words

The Employment Development Department, usually called EDD, is the California state agency that handles several benefit programs. For new parents, it runs (SDI) and (PFL). Both are funded by payroll deductions and are set out in the California Unemployment Insurance Code. EDD decides whether a claim is approved, how much is paid, and for how long. Mothers usually meet EDD when they file for pregnancy disability benefits or for bonding time with a new baby. EDD is not your employer, and it is not the same as the office. Claims are filed online or by phone, and EDD sends a notice with its decision. If a claim is denied or reduced, that notice explains how to appeal.

The deeper version

EDD administers the disability and family leave provisions of the California Unemployment Insurance Code, including the SDI program and Paid Family Leave, which has paid benefits since July 2004 through the SDI payroll tax. Claims are decided against statutory tests: a qualifying earnings base, medical certification for SDI, and a bonding or care reason for PFL. Benefit amounts are computed from recent base-period wages using a replacement formula that changes by year. Denials and overpayment determinations can be appealed to the California Unemployment Insurance Appeals Board. A continuing debate concerns whether the payroll tax base and benefit caps keep pace with wages.

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Sources

  • State of California — California Unemployment Insurance Code, Division 1, Part 2 (State Disability Insurance)
  • California Employment Development Department — State Disability Insurance and Paid Family Leave program information

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