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.