Integration of Wages with Benefits FAQs

Integration of wages with Disability Insurance (DI) or Paid Family Leave (PFL) benefits, also known as coordination or supplementation, is when an employee receives their full DI or PFL weekly benefit amount and is also paid wages from their employer or uses available leave to cover the difference. With this process, an employee could receive up to 100 percent of their normal weekly salary during their DI or PFL benefit period. Visit Integration of Benefits for more information.

Employees/Claimants

This process may allow you to receive up to 100 percent of your normal weekly salary during a period of disability or family care leave while using a reduced amount of your leave balance or receiving wages from your employer.

Example: Your current gross weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. Your employer can integrate a maximum amount of $225 per week in gross wages to you, allowing you to receive the equivalent of 100 percent of your normal weekly gross pay.

When the integration process is used, and the EDD has confirmed use of this process by your employer, the EDD will pay you the full DI or PFL benefits. This reduces follow-up contacts to your employer for further wage information.

Note: It is the responsibility of both you and your employer to ensure that you are not receiving more than 100 percent of your normal weekly salary when receiving integrated wages in conjunction with the DI or PFL weekly benefit amount

The EDD may give this information to your employer if you provide written permission on the initial DI or PFL claim forms. Mark “Yes” to the question, “May we disclose benefit payment information to your employer(s)?” on DI and PFL claims filed using SDI Online or paper claim forms to allow the EDD to provide this information.

You may also submit a separate written letter giving permission for the EDD to disclose benefit payment information to your employer.

Employers

DI and PFL are partial wage-replacement programs, meaning that if an employee takes time off work due to a disability or the need to care for a seriously ill family member or bond with a new child, the employee must have a wage loss to qualify for benefits.

The law requires that wages received during a period of disability or family care leave, plus DI or PFL benefits, cannot exceed the employee’s normal weekly salary (excluding overtime pay) immediately prior to the start of the disability or period of family care leave.

To review the law, see California Unemployment Insurance Code Section 2656.

The most common types of payments that are considered wages are sick leave, bereavement pay, back pay, and earnings (full or partial return to work). For more information, visit Reporting Your Wages - DI and Reporting Your Wages - PFL.

This process may allow an employee to receive up to 100 percent of their normal weekly salary during a period of disability or family leave while using a reduced amount of their leave balances or receiving wages from you.

Example: An employee’s current gross weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. You can integrate a maximum amount of $225 per week in gross wages to the employee, allowing the employee to receive the equivalent of 100 percent of their normal weekly gross pay.

When the integration process is used, and the EDD has confirmed use of this process by you, the EDD will pay the employee the full DI or PFL benefits. This reduces follow up contacts to you for further wage information.

Note: It is the responsibility of both you and your employee to ensure that they are not receiving more than 100 percent of their normal weekly salary when receiving integrated wages in conjunction with the DI or PFL weekly benefit amount.

If you integrate benefits with State Disability Insurance, you need benefit information to ensure the right amount of wages are paid to your employee during a period of disability or family leave.

Notes:

  • It is the responsibility of both you and your employee to ensure that the employee is not receiving more than 100 percent of their normal gross wages when receiving integrated wages in conjunction with the DI or PFL weekly benefit amount.
  • The first seven days of the DI claim is a non-payable waiting period, therefore wages paid by you during that timeframe are not in conflict (i.e., sick leave, holiday pay, etc.).

The EDD may give this information to you if your employee has provided their written permission on the initial DI or PFL claim forms. They must mark “Yes” to the question, “May e disclose benefit payment information to your employer(s)?” on DI and PFL claims filed using SDI Online or paper claim forms to allow the EDD to provide this information to you.

They may also submit a separate written letter giving permission for the EDD to disclose benefit payment information to you.

To review the law, see California Unemployment Insurance Code Section 1094.