SB 667: Disability insurance: eligibility: waiting period.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-09-28
(1)Under existing law, a disabled individual is eligible to receive disability benefits equal to 1/7 of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of Employment Development makes specified findings, including that the individual has been unemployed and disabled for a waiting period of 7 consecutive days during each disability benefit period. Existing law provides that during this 7-day waiting period, no disability benefits are payable.
This bill, beginning July 1, 2016, would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature on or before January 1, 2020, as specified.
(2)Existing law provides that if an individual receives 2 consecutive periods of disability benefits due to the same or a related cause or condition and separated by not more than 14 days, they are considered as one disability benefit period.
This bill, beginning July 1, 2016, would extend to 60 days the time between claims for the same or related cause or condition to be considered one disability benefit period.
(1)Under existing law, a disabled individual is eligible to receive disability benefits equal to 1/7 of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of Employment Development makes specified findings, including that the individual has been unemployed and disabled for a waiting period of 7 consecutive days during each disability benefit period. Existing law provides that during this 7-day waiting period, no disability benefits are payable.
This bill, beginning July 1, 2016, would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature on or before January 1, 2020, as specified.
(2)Existing law provides that if an individual receives 2 consecutive periods of disability benefits due to the same or a related cause or condition and separated by not more than 14 days, they are considered as one disability benefit period.
This bill, beginning July 1, 2016, would extend to 60 days the time between claims for the same or related cause or condition to be considered one disability benefit period.
(1)Under existing law, a disabled individual is eligible to receive disability benefits equal to 1/7 of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of Employment Development makes specified findings, including that the individual has been unemployed and disabled for a waiting period of 7 consecutive days during each disability benefit period. Existing law provides that during this 7-day waiting period, no disability benefits are payable.
This bill bill, beginning July 1, 2016, would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature by on or before January 1, 2020, as specified.
(2)Existing law provides that if an individual receives 2 consecutive periods of disability benefits due to the same or a related cause or condition and separated by not more than 14 days, they are considered as one disability benefit period.
This bill bill, beginning July 1, 2016, would extend to 60 days the time between claims for the same or related cause or condition to be considered one disability benefit period.
Under
(1)Under existing law, a disabled individual is eligible to receive disability benefits equal to 1/7 of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of Employment Development makes specified findings, including that the individual has been unemployed and disabled for a waiting period of 7 consecutive days during each disability benefit period. Existing law provides that during this 7-day waiting period, no disability benefits are payable.
This bill would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within the previous 60 days. 60 days after the initial disability benefit period. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
(2)Existing law provides that if an individual receives 2 consecutive periods of disability benefits due to the same or a related cause or condition and separated by not more than 14 days, they are considered as one disability benefit period.
This bill would extend to 60 days the time between claims for the same or related cause or condition to be considered one disability benefit period.
Under existing law, a disabled individual is eligible to receive disability benefits equal to 1/7 of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of Employment Development makes specified findings, including that the individual has been unemployed and disabled for a waiting period of 7 consecutive days during each disability benefit period. Existing law provides that during this 7-day waiting period, no disability benefits are payable.
This bill would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the same or a related condition within the previous 60 days. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days shall be considered as one disability benefit period.
(b)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 2.Section 2608 is added to the Unemployment Insurance Code, to read:2608.(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 60 days shall be considered as one disability benefit period.
(b)This section shall become operative on July 1, 2016.
SEC. 3.Section 2627 of the Unemployment Insurance Code is amended to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 4.Section 2627 is added to the Unemployment Insurance Code, to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has met the waiting period requirements on the initial claim for disability benefits when that person files a subsequent claim for disability benefits for the same or a related cause or condition within 60 days after the original disability benefit period.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
(f)This section shall become operative on July 1, 2016.
(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days shall be considered as one disability benefit period.
(b)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 2.Section 2608 is added to the Unemployment Insurance Code, to read:2608.(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 60 days shall be considered as one disability benefit period.
(b)This section shall become operative on July 1, 2016.
SEC. 3.Section 2627 of the Unemployment Insurance Code is amended to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 4.Section 2627 is added to the Unemployment Insurance Code, to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has met the waiting period requirements on the initial claim for disability benefits when that person files a subsequent claim for disability benefits for the same or a related cause or condition within 60 days after the original disability benefit period.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
(f)This section shall become operative on July 1, 2016.
(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days shall be considered as one disability benefit period.
(b)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 2.Section 2608 is added to the Unemployment Insurance Code, to read:2608.(a)Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 60 days shall be considered as one disability benefit period.
(b)This section shall become operative on July 1, 2016.
SEC. 3.Section 2627 of the Unemployment Insurance Code is amended to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)This section shall become inoperative on July 1, 2016, and as of January 1, 2017, is repealed.
SEC. 4.Section 2627 is added to the Unemployment Insurance Code, to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has met the waiting period requirements on the initial claim for disability benefits when that person files a subsequent claim for disability benefits for the same or a related cause or condition within 60 days after the original disability benefit period.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
(f)This section shall become operative on July 1, 2016.
SECTION 1.Section 2608 of the Unemployment Insurance Code is amended to read:2608.Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 60 days shall be considered as one disability benefit period.
SEC. 2.Section 2627 of the Unemployment Insurance Code is amended to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has met the waiting period requirements on the initial claim for disability benefits when that person files a subsequent claim for disability benefits for the same or a related cause or condition within 60 days after the original disability benefit period.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
Disability benefit period, with respect to any individual, means the continuous period of unemployment and disability beginning with the first day with respect to which the individual files a valid claim for unemployment compensation disability benefits. For the purposes of this part, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 60 days shall be considered as one disability benefit period.
SECTION 1. SEC. 2.Section 2627 of the Unemployment Insurance Code is amended to read:2627.A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has already served the seven-day waiting period for the same or a related condition within the previous 60 days. met the waiting period requirements on the initial claim for disability benefits when that person files a subsequent claim for disability benefits for the same or a related cause or condition within 60 days after the original disability benefit period.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
A disabled individual is eligible to receive disability benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability only if the director finds that:
(a)He or she has made a claim for disability benefits as required by authorized regulations.
(b)(1)He or she has been unemployed and disabled for a waiting period of seven consecutive days during each disability benefit period with respect to which waiting period no disability benefits are payable.
(2)The waiting period requirement shall not apply to a person who has already served the seven-day waiting period for the same or a related condition within the previous 60 days.
(c)Except as provided in Sections 2626.1, 2626.2, and 2709, he or she has submitted to such reasonable examinations as the director may require for the purpose of determining his or her disability.
(d)Except as provided in Section 2708.1, he or she has filed a certificate as required by Section 2708 or 2709.
(e)The director shall report to the Legislature regarding the effect of the modified waiting period in paragraph (2) of subdivision (b) on or before January 1, 2020, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.
|
Date
|
Status
|
|---|---|
| May 19, 2015 | Read second time. Ordered to third reading. |
| Sep 28, 2015 | Chaptered by Secretary of State. Chapter 357, Statutes of 2015. |
| Sep 28, 2015 | Approved by the Governor. |
| Sep 3, 2015 | Enrolled and presented to the Governor at 5:45 p.m. |
| Sep 1, 2015 | Read third time. Passed. (Ayes 80. Noes 0. Page 2721.) Ordered to the Senate. |
| Sep 1, 2015 | Read third time. Passed. Ordered to the Senate. |
| Sep 1, 2015 | In Senate. Ordered to engrossing and enrolling. |
| Aug 28, 2015 | Read second time. Ordered to third reading. |
| Aug 28, 2015 | From committee: Do pass. (Ayes 17. Noes 0.) (August 27). |
| Aug 19, 2015 | August 19 set for first hearing. Placed on APPR. suspense file. |
| Jul 8, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0.) (July 8). Re-referred to Com. on APPR. |
| Jun 11, 2015 | Referred to Com. on INS. |
| May 28, 2015 | Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. |
| May 28, 2015 | Read third time. Passed. (Ayes 38. Noes 0. Page 1119.) Ordered to the Assembly. |
| May 28, 2015 | In Assembly. Read first time. Held at Desk. |
| Feb 27, 2015 | Introduced. To Com. on RLS. for assignment. To print. |
| May 18, 2015 | Read third time and amended. |
| May 18, 2015 | Ordered to second reading. |
| May 18, 2015 | From special consent calendar on motion of Senator Jackson. |
| May 13, 2015 | Ordered to special consent calendar. |
| May 5, 2015 | Read second time. Ordered to third reading. |
| May 4, 2015 | From committee: Do pass. (Ayes 7. Noes 0.) (May 4). |
| May 4, 2015 | From committee: Do pass. (Ayes 7. Noes 0. Page 884.) (May 4). |
| Apr 24, 2015 | Set for hearing May 4. |
| Apr 22, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 729.) (April 22). Re-referred to Com. on APPR. |
| Apr 6, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & I.R. |
| Mar 27, 2015 | Set for hearing April 22. |
| Mar 12, 2015 | Referred to Com. on L. & I.R. |
| Mar 2, 2015 | Read first time. |
| Mar 2, 2015 | From printer. May be acted upon on or after April 1. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 1, 2015 | SB 667 Jackson Senate Third Reading By DALY | Assembly Floor |
Passed |
|
| Aug 27, 2015 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 8, 2015 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Insurance |
Passed |
|
| May 28, 2015 | Senate 3rd Reading SB667 Jackson | Senate Floor |
Passed |
|
| May 4, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Labor and Industrial Relations |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Labor Federation, Afl-Cio | ** Support | May 28, 2015 |
| Disability Rights California | ** Support | Sep 1, 2015 |
| Legal Aid Society-Employment Law Center | ** Support | Sep 1, 2015 |
| National Association of Social Workers, California Chapter (NASW-CA | ** Support | Sep 1, 2015 |
| Rural Legal Assistance Foundation | ** Support | Sep 1, 2015 |
SB 667
Page 2
SENATE THIRD READING
SB 667
(Jackson)
As Amended May 18, 2015
Majority vote
SENATE VOTE: 38-0
Committee |
Votes |
Ayes |
Noes |
Insurance |
13-0 |
Daly, Beth Gaines, Travis Allen, Calderon, Cooley, Cooper, Dababneh, Frazier, Gatto, Gonzalez, Grove, Mayes, Rodriguez |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bloom, Bonta, Calderon, Chang, Nazarian, Eggman, Gallagher, Eduardo Garcia, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Extends the duration of the "disability benefit period" from 14 days to 60 days so that fewer claimants with ongoing or recurring conditions have to face a new seven-day waiting period for each absence from work, and requires the Employment Development Department (EDD) to report on the impact of this change by January 1, 2020.
EXISTING LAW:
Establishes the State Disability Program (SDI) program which provides partial wage-replacement benefits for eligible workers temporarily unable to work due to a non-work related injury, illness, or condition.
Requires a seven-day waiting period, during which no benefits are paid, before the claimant receives SDI benefits.
Defines "disability benefit period" as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits.
Provides that if an individual experiences two consecutive periods of disability due to the same or related cause or condition, separated by a period of not more than 14 days, then they are considered as one disability benefit period.
FISCAL EFFECT: According to the Assembly Appropriations Committee, estimated $60,000 for implementation costs by EDD and unknown, likely minor, additional benefit costs to the Disability Insurance Fund.
COMMENTS:
Purpose. According to the author, this bill ensures that the SDI system better serves the needs of employees managing chronic health conditions. An employee who returns to work after a period of disability in which they served the 7-day waiting period before drawing SDI benefits, shouldn’t have to serve another 7-day waiting period if they must leave work again within a two month period. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and discourages employees from returning to work as soon as, and for as long as, possible. This bill is a common sense reform that will give workers with serious health issues better access to much needed SDI benefits. The author argues that this second waiting period significantly disadvantages employees who are managing a chronic illness or injury, like chronic debilitating back pain or those who have returned to work after initial cancer treatment, but must have chemotherapy treatments every three weeks. This bill addresses this problem by extending from two weeks to 60 days the period of time under which an employee can reopen an SDI claim without having to suffer a new 7-consecutive day waiting period of wage loss.
Background. Under the SDI program, an employee must serve a waiting period of seven consecutive days of wage loss prior to receiving benefits. If an employee returns to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must re-serve the seven consecutive day waiting period before being eligible for additional benefits. According to the EDD, in 2014 there were a total of 699,486 SDI claims filed of which 5,853 were from individuals who filed multiple claims for the same condition.
Analysis Prepared by: Paul Riches / INS. / (916) 319-2086 FN: 0001708
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 667
(Jackson) – As Amended May 18, 2015
Policy Committee: |
Insurance |
Vote: |
13 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill extends the duration of the "disability benefit period" from 14 to 60 days so that fewer claimants with ongoing or recurring conditions have to face a new 7-day waiting period for each absence from work, and requires the Employment Development Department (EDD) to report on the impact of this change by January 1, 2020.
FISCAL EFFECT:
Unknown, likely minor potential impact to the State Disability Insurance (SDI) Fund (technically called the Unemployment Compensation Disability Fund, but often referred to as the SDI Fund) as a result of this bill. The SDI program paid out $4.5 billion in benefits in 2013-14.
For certain individuals who have conditions such as cancer for which treatment may be intermittent for a period of time, this may result in an additional week or two of benefits being provided. The average weekly benefit amount is $493. EDD reports a small number of claimants had more than one claim for the same condition in the same year (5,853 claims in 2014). Of these, not all would qualify for additional benefits under this change. An unknown portion would be within the 60-day time frame prescribed by the bill. In addition, a small number of new claims may be filed for which it would not have been worthwhile to file under previous rules. Thus, the exact number of people benefiting from this change is unknown, but it seems likely that it could be in the hundreds statewide. If, for example, if 500 people per year were eligible for an additional week of average benefits due to this bill, costs to the SDI Fund will be $245,000, which equates an increase of 0.005% in total expenditures. This cost may be offset by other dynamics.
$60,000 in estimated one-time costs to EDD for information technology systems changes (SDI Fund).
COMMENTS:
Purpose. According to the author, this bill ensures that the SDI system better serves the needs of employees managing chronic health conditions. An employee who returns to work after a period of disability in which they served the 7-day waiting period before drawing SDI benefits, shouldn’t have to serve another 7-day waiting period if they must leave work again within a two month period. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and discourages employees from returning to work as soon as, and for as long as, possible.
Background. Under the SDI program, an employee must serve a waiting period of 7 consecutive days of wage loss prior to receiving benefits. If an employee returns to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must again serve the 7-day waiting period before being eligible for additional benefits.
Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081
SB 667
Page 2
Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON INSURANCE
Tom Daly, Chair
SB 667
(Jackson) – As Amended May 18, 2015
SENATE VOTE: 38-0
SUBJECT: Disability insurance: eligibility: waiting period.
SUMMARY: Extends the duration of the "disability benefit period" from 14 to 60 days so that fewer claimants with ongoing or recurring conditions have to face a new 7-day waiting period for each absence from work, and requires the Employment Development Department (EDD) to report on the impact of this change by January 1, 2020.
EXISTING LAW:
Establishes the SDI program which provides partial wage-replacement benefits for eligible workers temporarily unable to work due to a non-work related injury, illness, or condition.
Requires a 7-day waiting period, during which no benefits are paid, before the claimant receives SDI benefits.
Defines “disability benefit period” as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits.
Provides that if an individual experiences two consecutive periods of disability due to the same or related cause or condition, separated by a period of not more than 14 days, then they are considered as one disability benefit period.
FISCAL EFFECT: The Senate Appropriations Committee estimated $57,000 for implementation costs by EDD.
COMMENTS:
Purpose. According to the author, this bill ensures that the SDI system better serves the needs of employees managing chronic health conditions. An employee who returns to work after a period of disability in which they served the 7-day waiting period before drawing SDI benefits, shouldn’t have to serve another 7-day waiting period if they must leave work again within a two month period. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and discourages employees from returning to work as soon as, and for as long as, possible. This bill is a common sense reform that will give workers with serious health issues better access to much needed SDI benefits. The author argues that this second waiting period significantly disadvantages employees who are managing a chronic illness or injury, like chronic debilitating back pain or those who have returned to work after initial cancer treatment, but must have chemotherapy treatments every three weeks. This bill addresses this problem by extending from two weeks to 60 days the period of time under which an employee can reopen an SDI claim without having to suffer a new 7-consecutive day waiting period of wage loss.
Background. Under the SDI program, an employee must serve a waiting period of seven consecutive days of wage loss prior to receiving benefits. If an employee returns to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must re-serve the seven consecutive day waiting period before being eligible for additional benefits. According to the EDD, in 2014 there were a total of 699,486 SDI claims filed of which 5,853 were from individuals who filed multiple claims for the same condition.
REGISTERED SUPPORT / OPPOSITION:
Support
Legal Aid Society-Employment Law Center (sponsor)
California Labor Federation
Disability Rights California
National Association of Social Workers, California Chapter (NASW-CA
Rural Legal Assistance Foundation
Social Work Department within the UCSF Helen Diller Family Comprehensive Cancer Center
Opposition
None received
Analysis Prepared by: Paul Riches / INS. / (916) 319-2086
SB 667
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 667
Amended: 5/18/15
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 4/22/15
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/4/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Disability insurance: eligibility: waiting period
SOURCE: Legal Aid Society-Employment Law Center
DIGEST: This bill, beginning on July 1, 2016, (1) waives the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period, and (2) requires the Employment Development Department (EDD) to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
Senate Floor Amendments of 5/18/15 delay implementation until July 1, 2016 of the provisions in this bill and add Senator Stone as a co-author.
Existing law:
Provides, under the State Disability Insurance (SDI) program, a state-mandated partial wage-replacement insurance plan funded through employee payroll deductions to provide short-term Disability Insurance and Paid Family Leave benefits to eligible workers temporarily unable to work due to non-work related illness or injury, pregnancy, or childbirth.
Provides eligible individuals can receive disability benefits equal to one-seventh (1/7th) of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of EDD makes specified findings, including that:
He/she has made a disability benefits claim as required by regulations.
He/she has been unemployed and disabled for a waiting period of 7-consecutive days during each disability benefit period. During this 7-day waiting period, no disability benefits are payable. (Labor Code §2627)
Defines “disability benefit period” as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits.
Provides that if an individual receives two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days, then they are considered as one disability benefit period. (Labor Code §2608)
This bill:
Waives the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period.
Requires the Director of EDD to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
Provides that these provisions will go into effect on July 1, 2016.
Background
Under the SDI program, an employee must serve a waiting period of seven consecutive days of wage loss prior to receiving partial wage replacement disability benefits. If an employee return to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must re-serve the seven consecutive day waiting period before being eligible for additional benefits. According to the EDD, in 2014 there were a total of
699,486 SDI claims filed of which 5,853 were from individuals who filed multiple claims for the same condition.
The author argues that this second waiting period significantly disadvantages employees who are managing a chronic illness or injury, like chronic debilitating back pain or those who have returned to work after initial cancer treatment, but must have chemotherapy treatments every three weeks. This bill addresses this problem by extending from two weeks to 60 days the period of time under which an employee can reopen an SDI claim without having to suffer a new 7-consecutive day waiting period of wage loss.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, EDD indicates that it would incur one-time costs of about $57,000 (Disability Insurance Fund) to implement the provisions of the bill. While it is unknown how many additional claims might be eligible for payment if the recovery period were expanded, a review of the claimants who file multiple claims in the same year for the same condition revealed a very small amount of claimants filing multiple initial claims for the same condition.
Legal Aid Society-Employment Law Center (source)
California Labor Federation, AFL-CIO
California Rural Legal Assistance Foundation
National Association of Social Workers, California Chapter
UCSF Helen Diller Family Comprehensive Cancer Center, Social Work Department
OPPOSITION: (Verified 4/22/15)
None received
ARGUMENTS IN SUPPORT: The author believes that this bill ensures that the SDI system better serves the needs of employees managing chronic health conditions. According to the author, if an employee returns to work after a period of disability in which they served the seven consecutive-day unpaid waiting period before drawing SDI benefits, that employee shouldn’t have to serve another seven consecutive-day unpaid waiting period, if they must leave work again within a two month period for additional treatment. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and disincentives employees from returning to work as soon as and for as long as possible. This bill is a common sense reform that will give workers with serious health issues better access to much needed SDI benefits.
Prepared by: Alma Perez / L. & I.R. / (916) 651-1556
5/19/15 14:31:28
SB 667
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 667
Amended: 4/6/15
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 4/22/15
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/4/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Disability insurance: eligibility: waiting period
SOURCE: Legal Aid Society-Employment Law Center
DIGEST: This bill (1) waives the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period, and (2) requires the Employment Development Department (EDD) to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
Existing law:
Provides, under the State Disability Insurance (SDI) program, a state-mandated partial wage-replacement insurance plan funded through employee payroll deductions to provide short-term Disability Insurance and Paid Family Leave benefits to eligible workers temporarily unable to work due to non-work related illness or injury, pregnancy, or childbirth.
Provides eligible individuals can receive disability benefits equal to one-seventh (1/7th) of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the Director of EDD makes specified findings, including that:
He/she has made a disability benefits claim as required by regulations.
He/she has been unemployed and disabled for a waiting period of 7-consecutive days during each disability benefit period. During this 7-day waiting period, no disability benefits are payable. (Labor Code §2627)
Defines “disability benefit period” as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits.
Provides that if an individual receives two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days, then they are considered as one disability benefit period. (Labor Code §2608)
This bill:
Waives the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period.
Requires the Director of EDD to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
Background
Under the SDI program, an employee must serve a waiting period of seven consecutive days of wage loss prior to receiving partial wage replacement disability benefits. If an employee return to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must re-serve the seven consecutive day waiting period before being eligible for additional benefits. According to the EDD, in 2014 there were a total of
699,486 SDI claims filed of which 5,853 were from individuals who filed multiple claims for the same condition.
The author argues that this second waiting period significantly disadvantages employees who are managing a chronic illness or injury, like chronic debilitating back pain or those who have returned to work after initial cancer treatment, but must have chemotherapy treatments every three weeks. This bill addresses this problem by extending from two weeks to 60 days the period of time under which an employee can reopen an SDI claim without having to suffer a new 7-consecutive day waiting period of wage loss.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, EDD indicates that it would incur one-time costs of about $57,000 (Disability Insurance Fund) to implement the provisions of the bill. While it is unknown how many additional claims might be eligible for payment if the recovery period were expanded, a review of the claimants who file multiple claims in the same year for the same condition revealed a very small amount of claimants filing multiple initial claims for the same condition.
Legal Aid Society-Employment Law Center (source)
California Labor Federation, AFL-CIO
California Rural Legal Assistance Foundation
National Association of Social Workers, California Chapter
UCSF Helen Diller Family Comprehensive Cancer Center, Social Work Department
OPPOSITION: (Verified 4/22/15)
None received
ARGUMENTS IN SUPPORT: The author believes that this bill ensures that the SDI system better serves the needs of employees managing chronic health conditions. According to the author, if an employee returns to work after a period of disability in which they served the seven consecutive-day unpaid waiting period before drawing SDI benefits, that employee shouldn’t have to serve another seven consecutive-day unpaid waiting period, if they must leave work again within a two month period for additional treatment. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and disincentives employees from returning to work as soon as and for as long as possible. This bill is a common sense reform that will give workers with serious health issues better access to much needed SDI benefits.
Prepared by: Alma Perez / L. & I.R. / (916) 651-1556
5/15/15 15:07:28
SB 667 (Jackson) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 667 (Jackson) - Disability insurance: eligibility: waiting period
|
|
Version: April 6, 2015 |
Policy Vote: L. & I.R. 5 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: May 4, 2015 |
Consultant: Robert Ingenito |
This bill does not meet the criteria for referral to the Suspense File.
Bill Summary:
SB 667 would (1) waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period, and (2) require the Employment Development Department (EDD) to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
Fiscal Impact:
EDD indicates that it would incur one-time costs of about $57,000 (Disability Insurance Fund) to implement the provisions of the bill.
Background:
Under current state law, the State Disability Insurance (SDI) program provides short-term disability insurance (DI) and paid family leave (PFL) benefits to eligible workers temporarily unable to work due to non-work related illness or injury, pregnancy, or childbirth. Individuals may also be eligible for PFL to care for a seriously ill family member or to bond with a new child. The SDI program is administered by EDD, and is a state-mandated partial wage-replacement insurance plan funded through employee payroll deductions. Eligible individuals can receive disability benefits equal to one-seventh of their weekly benefit amount for each full day during which they are unemployed due to a disability if the director of EDD makes specified findings, including that (1) they have made a claim for disability benefits as required by authorized regulations, and (2) they have been unemployed and disabled for a waiting period of 7-consecutive days during each disability benefit period. During this 7-day waiting period, no disability benefits are payable.
Current law defines “disability benefit period” as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits, and provides that if an individual receives two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days, then they are considered as one disability benefit period.
Proposed Law:
This bill would change the current definition of a continuous period of disability for State Disability Insurance (SDI) benefit purposes. Currently, two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days are considered to be one disability benefit period. If an individual takes a disability leave, goes back to work for more than 14 days, and then goes back out on a disability leave for the same condition, that leave would be considered a new SDI claim and the claimant must serve another unpaid seven-day waiting period. This bill would increase the 14-day requirement to 60 days. The bill would also require the director to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020.
Staff Comments:
EDD indicates that expanding the 14-day requirement would have a minor impact to the DI Fund. While it is unknown how many additional claims might be eligible for payment if the recovery period were expanded, a review of the claimants who file multiple claims in the same year for the same condition revealed a very small amount of claimants filing multiple initial claims for the same condition.
-- END --
SB 667 (Jackson) Page 3 of 3
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: SB 667 Hearing Date: April 22, 2015
Author: |
Jackson |
||
Version: |
April 6, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Alma Perez-Schwab |
||
Subject: Disability insurance: eligibility: waiting period
KEY ISSUE
Should the Legislature allow an individual suffering from a non-work related injury or illness and who is receiving State Disability Insurance (SDI) benefits [and has served the necessary unpaid 7-day waiting period to receive benefits] to re-apply for SDI within 60 days after the initial application without having to serve a second 7-day unpaid waiting period?
ANALYSIS
The existing California State Disability Insurance (SDI) program provides short-term Disability Insurance (DI) and Paid Family Leave (PFL) benefits to eligible workers temporarily unable to work due to non-work related illness or injury, pregnancy, or childbirth. Individuals may also be eligible for PFL to care for a seriously ill family member or to bond with a new child. The SDI program, administered by the Employment Development Department (EDD), is a state-mandated partial wage-replacement insurance plan funded through employee payroll deductions. Eligible individuals can receive disability benefits equal to one-seventh (1/7th) of his or her weekly benefit amount for each full day during which he or she is unemployed due to a disability if the director of EDD makes specified findings, including that:
He or she has made a claim for disability benefits as required by authorized regulations.
He or she has been unemployed and disabled for a waiting period of 7-consecutive days during each disability benefit period. During this 7-day waiting period, no disability benefits are payable. (Labor Code §2627)
Existing law defines “disability benefit period” as the continuous period of unemployment and disability beginning with the first day for which the individual files a valid claim for disability benefits. Existing law provides that if an individual receives two consecutive periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days, then they are considered as one disability benefit period. (Labor Code §2608)
This Bill would waive the 7-day waiting period for an individual who has already served the 7-day waiting period for the initial claim when that person files a subsequent claim for disability benefits for the same or a related condition within 60 days after the initial disability benefit period.
This Bill would also require the director of EDD to submit a report regarding the effect of the modified waiting period to the Legislature by January 1, 2020, as specified.
COMMENTS
1. Need for this bill?
Under the SDI program, an employee must serve a waiting period of seven consecutive days of wage loss prior to receiving partial wage replacement disability benefits. If an employee returns to work after a period of temporary disability for more than 2 weeks before experiencing a reoccurrence of the same condition they must re-serve the seven consecutive day waiting period before being eligible for additional benefits. According to the Employment Development Department, in 2014 there were a total of 699,486 SDI claims filed of which 5,853 were from individuals who filed multiple claims for the same condition.
The author argues that this second waiting period significantly disadvantages employees who are managing a chronic illness or injury, like chronic debilitating back pain or those who have returned to work after initial cancer treatment, but must have chemotherapy treatments every three weeks. This bill would address this problem by extending from two weeks to 60 days the period of time under which an employee can reopen a disability insurance claim without having to suffer a new 7-consecutive day waiting period of wage loss while waiting to be eligible for SDI benefits.
2. Proponent Arguments:
The author believes that this measure would ensure that the SDI system better serves the needs of employees managing chronic health conditions. According to the author, if an employee returns to work after a period of disability in which they served the seven consecutive-day unpaid waiting period before drawing SDI benefits, that employee shouldn’t have to serve another seven consecutive-day unpaid waiting period, if they must leave work again within a two month period for additional treatment. The author argues that the unpaid waiting period places an unnecessary hardship on workers managing a chronic health condition and disincentives employees from returning to work as soon as and for as long as possible.
Proponents argue that for an injured or ill worker who is forced to stop working during treatment for a serious health condition, every day without wage replacement adds to the layers of distress they are already experiencing. Many of these workers are facing life-changing diagnoses, rising health care costs and the limitations that treatment may put on their ability to earn an income. Proponents site as an example, a patient who takes one week of leave every three weeks for chemotherapy will never be eligible for benefits because he or she will have to re-serve the waiting period during each instance of leave. This bill, they argue, is a common sense reform that will allow workers with serious health issues better and more reliable access to much needed SDI benefits.
3. Opponent Arguments:
None received.
SUPPORT
Legal Aid Society-Employment Law Center – Sponsor
California Labor Federation, AFL-CIO
California Rural Legal Assistance Foundation
National Association of Social Workers, California Chapter
UCSF Helen Diller Family Comprehensive Cancer Center, Social Work Department
OPPOSITION
None received
-- END --
Discussed in Hearing
1MIN
Assembly Floor
2MIN
Senate Floor
3MIN
Senate Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):
