BILL ANALYSIS Ó SB 667 Page 1 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: 1)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. 2)Requires a 7-day waiting period, during which no benefits are paid, before the claimant receives SDI benefits. SB 667 Page 2 3)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. 4)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: 1)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 SB 667 Page 3 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. 2)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) SB 667 Page 4 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