There is more than one plan California employers use to insure their workers and pay them while they can not work to earn money. Voluntary plans actually cost less than State Disability Insurance (SDI).

The California Unemployment Insurance Code says employers have the choice between the two.

Insuring Their Own

A voluntary plan is a private short term plan that covers disability. Workers can not get left without coverage when they have to depend on payments that replace their income that was lost after they were injured or became sick outside of work. But, the benefits that pay for their living costs do not have to come from a SDI plan. Voluntary plans take the place of the state plans.

Taking The Insurance Coverage

Workers that work for an employer that sets up a voluntary plan can choose to use the State Disability Insurance instead. Their employer's choice to use their own private insurance does not shut the door on any opportunity to take the state benefits that are funded with payroll tax funds. They have a right to request the coverage the state offers to Californians.

Better Than Equal Coverage

The deal for the worker that gets voluntary plan coverage is always better than the SDI coverage. No right or benefit can be less. At least one has to give the worker more than the SDI plan. And, the workers are asked to pay less than they would for SDI, never more. The most expensive cost a Californian can expect to pay is the same as the state plan cost.

Paid Family Leave adds to the benefits in voluntary plans. Employers have to include the PFL that is part of the SDI plan.

There is a limit to who has to get covered. Part time employee that work less than 50 percent of the employer's regular hours can get left out of the voluntary plans. Work in short term positions that last two weeks or less does not earn the Californian the opportunity to ask for coverage by a voluntary plan and know the state law is behind them. Employers can offer, but do not have to.

Final Day of Coverage

The regular insurance coverage ends at midnight on the day the work ends. Any disability that happened before midnight makes the worker eligible to get benefits.

A Coverage for Recovery

Workers do not give up anything. They will get more to help them recover from their injury or illness and return to work.

Source:

California Employment Development Department, Disability Insurance: Employer's Guide to Voluntary Plan Procedures (August, 2007 Internet).