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Employment Development Department
Employment Development Department

Voluntary Plans

California law allows an employer or a majority of employees to apply to the Employment Development Department (EDD) for approval of a Voluntary Plan (VP) for the payment of Disability Insurance (DI) and Paid Family Leave (PFL) benefits in place of the mandatory State Disability Insurance (SDI) coverage. A VP must provide all the benefits of SDI, at least one benefit that is better than SDI, and it cannot cost employees more than SDI. To be approved for a VP, the employer must post a security deposit with the EDD to guarantee that it meets all obligations of the VP.

For more information on the VP program, such as types of security deposits, reporting requirements, and disputed coverage claims, reference the Disability Insurance Employer’s Guide to Voluntary Plan Procedures (DE 2040).

For additional questions, visit VP FAQ, VP Forms and Publications, or contact us: