SDI Law and Legal Definition

SDI is the State Disability Insurance. It is a partial wage for workers. This is mandated by the State and is funded by the deductions from the employee's payroll. SDI offers short-term benefits that are affordable to eligible workers who are going through a loss of wages because they cannot work.

The benefits of State Disability Insurance is as follows:

1.It covers the travels of the employees. However the coverage is not dependent when the employee is sticking with a particular employer.

2. This is mandatory for most of the workers in the specific state.

3. It is non-exclusionary. Anyone who is eligible cannot have his coverage be denied or canceled due to health risk factors, hazardous employment, or pre-existing conditions.

4. State Disability Insurance may reach up to 52 weeks of benefits. It has a waiting period of seven days.

5. The payroll deduction for all the employees who are covered are based on a single contribution rate.

Commonwealth of Puerto Rico and five states offer disability insurance programs. These are California, New York, New Jersey, Rhode Island, and Hawaii.