BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 667|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 667
Author: Jackson (D)
Amended: 4/6/15
Vote: 21
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.
ANALYSIS:
Existing law:
1)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
SB 667
Page 2
related illness or injury, pregnancy, or childbirth.
2)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:
a) He/she has made a disability benefits claim as required
by regulations.
b) 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)
1)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.
2)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:
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.
2)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
SB 667
Page 3
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.:YesLocal: 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.
SUPPORT: (Verified4/22/15)
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
SB 667
Page 4
Work Department
OPPOSITION: (Verified4/22/15)
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
**** END ****