1411 - Non-Industrial Disability Insurance (NDI)
Benefits and Insurance
- Employee Relations Officers
- Personnel Officers
- Personnel Transactions Staff
- Personnel Transactions Supervisors
- Defines Non-Industrial Disability Insurance (NDI).
- Discusses who is eligible to receive Non-Industrial Disability Insurance.
- Discusses eligibility requirements.
- Discusses the difference between Non-Industrial Disability Leave and Enhanced Non-Industrial Disability (ENDI) Leave.
- Provides information on the calculation of benefits, working while on ENDI, voluntary movements, investigations and appeals, and cessation of benefits.
- Provides information on the NDI – Family Care Leave Program (NDI-FCL) for excluded employees with the following CBIDs: E99, E98, E97, E79, E78, E77, E68, E67, E59, E58, E48, M01-M21, M99, S01-S21, C01-C21.
Non-Industrial Disability Insurance (NDI) is a program funded by state employers to provide partial wage replacement to eligible state employees who have wage loss due to a non-work related illness or injury, including disability due to pregnancy.
Employees excluded from bargaining and those represented by bargaining units (BUs) 2, 5, 6, 7, 8, 9, 10, 12, 13, 16, 18, and 19 are eligible for the NDI program.
Employees eligible for NDI enrolled in the annual leave program are eligible for Enhanced Non-Industrial Disability Insurance (ENDI) benefits.
Effective July 1, 2019, employees excluded from collective bargaining and enrolled in the annual leave program, are eligible to receive Non-Industrial Disability Insurance Family Care Leave (NDI-FCL) to care for an eligible family member or to bond with a new child.
SEIU represented employees (BU 1, 3, 4, 11, 14, 15, 17, 20, and 21) are eligible for State Disability Insurance (SDI).
The Department of Human Resources has program responsibility for NDI, such as procedural instructions and clarification of Government Code sections, California Code of Regulations, and Memorandum of Understanding (MOU). The Employment Development Department (EDD) has administrative responsibility such as claim approval/denial, review of medical reports, and benefit period.
An employee may be eligible to receive NDI when they are unable to perform their regular or customary work and suffer a wage loss as a result of a non-work related disability, illness, or injury including disability due to pregnancy or child birth.
Employees enrolled in annual leave (AL) are eligible to receive Enhanced Non-Industrial Disability Insurance (ENDI). The differences between NDI and ENDI are described below.
NDI Eligibility and Benefits
Employees are eligible for NDI if they are:
- Enrolled in sick/vacation; and
- Excluded or represented by an applicable BU; and
- An active member of the Public Employees Retirement System, State Teachers Retirement System, or a full or part-time state officer or employee of the Legislature.
Permanent or probationary part-time or intermittent state officers or employees, with at least the equivalent of six compensated monthly pay periods of service in the 18 months of pay periods immediately preceding the pay period in which the disability begins, may also be eligible for NDI benefits on a pro-rata basis.
Benefits under the NDI program are payable for a period not to exceed 26 weeks for any one disability. The 26-week benefit period shall be equivalent to 182 calendar days. Excluded employees who meet the eligibility requirements (Gov. Code, § 19878) receive 50 percent of their gross pay up to $135 per week. To determine the applicable NDI benefit rate for represented employees refer to the applicable MOU. Employees shall not be required to exhaust leave credits prior to receiving this benefit.
Per California Code of Regulations, title 2, section 599.770, excluded employees may waive the seven day waiting period. The waiting period may be waived commencing with the first full day of confinement in a hospital or nursing home. To determine if there is a waiting period for represented employees, refer to the applicable MOU.
Excluded and eligible represented employees who enroll in AL while on NDI leave shall continue to receive NDI at the old rate throughout the disability period.
Once NDI payment begins, an employee may at any time switch from NDI to sick/vacation leave, or other leave credits, but may not return to NDI until that leave is exhausted.
An employee is not eligible for a second disability benefit due to the same or related cause or condition unless they have returned to work for at least 10 consecutive work days. Paid leave shall not be used to cover the 10 days.
Employees enrolled in annual leave are eligible for ENDI benefits. Benefits under the ENDI program are payable for a period not to exceed 26 weeks for any one disability. The 26-week benefit shall be equivalent to 182 calendar days. Employees who meet the eligibility requirements (Gov. Code, § 19878) receive 50 percent of their gross salary. Employees eligible for ENDI may elect to supplement their ENDI benefit to either a rate of 75 percent or 100 percent income replacement at the time they file the ENDI claim. With the exception of bargaining unit (BU) 5 employees, once a claim for ENDI has been filed and the employee has elected the rate of supplementation, the supplemental rate must be maintained throughout the disability period. BU 5 employees may elect to change their supplementation rate one time during the period of the claim. The change shall be effective upon such date as requested by the employee, provided that such notification is received by the department's Human Resources Office at least twenty (20) days in advance of the requested effective date.
In the event an excluded or eligible represented employee no longer has leave credits for supplementation or is no longer partially employed, the 50 percent ENDI benefit level will be payable to the employee for the remainder of the ENDI claim.
Excluded and represented employees who supplement their ENDI benefit at the 100 percent level shall be considered to have served a qualifying pay period for any of the rights and benefits dependent on having worked a completed month, as prescribed in California Code of Regulations, title 2, section 599.608. These rights or benefits include, but are not limited to, qualifying service for merit and special in-grade salary adjustments, annual leave accruals, paid educational leave, and seniority credit. Excluded and represented employees who supplement their ENDI benefits at the 75 percent level shall receive state service and annual leave credits at one-half the rate granted to those who supplement at 100 percent. If a holiday falls during the period of supplementation, an employee will not have to charge the day against the leave supplementation amount.
Per California Code of Regulations, title 2, section 599.770 excluded employees may serve a seven day waiting period. The waiting period may be waived commencing with the first full day of confinement in a hospital or nursing home. To determine if there is a waiting period for represented employees, refer to the applicable MOU.
Once ENDI payments begin, an employee may at any time switch from ENDI to annual leave or other leave credits, but may not return to ENDI until that leave is exhausted.
Excluded employees who elect to change to AL from the sick/vacation leave program do not have a waiting period for ENDI benefits. Refer to the applicable MOU to determine if a represented employee is subject to a waiting period upon enrollment in to AL and receiving ENDI benefits.
NDI Family Care Leave
Effective July 1, 2019, excluded employees with CBID E99, E98, E97, E79, E78, E77, E68, E67, E59, E58, E48, M01-M21, M99, S01-S21, C01-C21 enrolled in the Annual Leave Program are eligible for Non-Industrial Disability Insurance - Family Care Leave (NDI-FCL). This program provides partial wage replacement for up to six weeks within a 12-month period. NDI-FCL allows eligible employees to care for a seriously ill family member or bond with a newborn child, adopted child, or foster care placement. Employees who meet the eligibility requirements receive 50 percent of their gross salary for each week of NDI-FCL. For each day of NDI-FCL, employees are entitled to 1/7 of their weekly entitlement. Employees eligible for NDI-FCL may elect to supplement their NDI-FCL benefit to either a rate of 75 percent or 100 percent income replacement at the time they file the NDI-FCL claim.
To qualify employees must be unable to perform their regular or customary work due to the need to care for a seriously ill family member or to bond with a new child (because of the birth of a child of the employee, adoption, or foster care placement of a child with the employee). A family member for purposes of NDI-FCL means child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner.
Employees will not earn Public Employees’ Retirement System (CalPERS) or State Teachers’ Retirement System (CalSTRS) service credit for the 50% NDI-FCL wages but would receive partial credit if they supplement 75% or 100%. Employer contributions to employees’ retirement account will not be made while receiving NDI-FCL. CalPERS and CalSTRS credit are earned for time worked or supplemented with accrued leave.
Beginning January 1, 2021, NDI-FCL will include qualifying exigency leave. A qualifying exigency is leave related to the covered active duty or call to active duty of the employee’s spouse, domestic partner, child or parent in the Armed Forces. Qualifying reasons may be found in Unemployment Insurance Code section 3302.2.
Calculation of Benefit
The employee’s salary rate on the day of the monthly pay period in which NDI benefits are compensable shall be used to compute NDI payments. Thereafter payment shall not be modified to reflect any salary adjustment, which the employee would have received had the disability not occurred.
Working while on NDI/ENDI
In accordance with the state’s return to work policy, an employee who is eligible to receive NDI/ENDI benefits and who is medically certified as unable to return to their full-time work during the period of his or her disability, may upon the discretion of his or her appointing power work those hours (in hour increments) which when combined with the NDI/ENDI benefit will not exceed 100 percent or their regular full pay.
If the NDI/ENDI benefit plus the employee’s partial work payment exceed 100% of the employee’s regular full pay, the NDI/ENDI benefit shall be reduced such that the total equals the employee’s regular full pay.
Voluntary Movements (Promotion, Transfer, Demotion)
If an excluded or eligible represented employee voluntarily moves to a position in another category on a permanent, limited, or temporary basis, NDI/ENDI payments in progress would continue at the same rate. The payment rate for a new claim will be consistent with the new Collective Bargaining Identifier (CBID).
Investigations and Appeals
The EDD has the authority to investigate NDI/ENDI claims filed by employees in all state agencies. All fraudulent claims are subject to both criminal and civil prosecution by appropriate authorities. NDI/ENDI benefits may be immediately suspended upon the filing of a criminal complaint concerning such fraudulent activity. The EDD shall be responsible for appeals arising out of the NDI/ENDI Program.
Cessation of Benefits
Payments for NDI/ENDI (including NDI-FCL) shall not be payable for any day on or after death, separation, leave of absence, or retirement from state service. An employee shall not have an application for NDI/ENDI (including NDI-FCL) benefits approved for payment while on suspension due to a disciplinary action.
The State Controller’s Office provides NDI/ENDI calculators and information on how to document and process NDI/ENDI. Processing instructions for NDI/ENDI can be found in the Payroll Procedure Manual (PPM), Section E – Disability.
An employee is eligible for up to six weeks (42 days) of NDI-FCL, which can be taken all at once or intermittently. All days an employee claims NDI-FCL are deducted from their 42-day entitlement. NDI-FCL is used in one day increments, therefore, employees cannot work a partial day and use NDI-FCL the same day.
An approved NDI disability claim would have to end in order for a NDI-FCL claim to begin. A person cannot be disabled and bond or care for someone else at the same time. In cases where NDI is approved after NDI-FCL has begun, the NDI claim will take precedence, and NDI-FCL will cease until the disability claim has ended. Once the disability claim has ended, NDI-FCL can resume.
EDD has created a new form specifically for NDI-FCL, Claim for Nonindustrial Disability Insurance – Family Care Leave, DE 8501F. Prior to human resources staff completing Part A of the DE 8501F they are required to confirm the employee is eligible by verifying the employee is excluded from bargaining and enrolled in the Annual Leave Program.
Departments are required to track the number of NDI-FCL days used by employees. Departments utilizing the State Controller’s Office, Leave Accounting System can track the number of days using that system (SCO CLAS Letter #19-005). Departments using other systems to track leave will need to create a mechanism, whether electronically or manually, to track the number of days used. Departments must ensure employees do not exceed six weeks (42 days) of NDI-FCL in a 12-month period.
Departments are required to notify new and current eligible employees of this benefit entitlement and inform the employees that prior to taking NDI-FCL they are required to complete the NDI-FCL Designation Form (or similar document) each pay period to communicate their leave plan with the appropriate human resources staff. If any changes are made to the leave plan after submission, the employee must submit a new NDI-FCL Designation Form (or similar document) in order to avoid overpayments and underpayments.
The employee has the option to use NDI-FCL any day of the week, including their regular days off or on holidays (a link to NDI-FCL calculator samples are located under the Resources section below).
- Bargaining Contracts - MOUs
- California Code of Regulations, title 2, section 599.682
- California Code of Regulations, title 2, section 599.687
- California Code of Regulations, title 2, section 599.752
- California Code of Regulations, title 2, section 599.752.1
- California Code of Regulations, title 2, section 599.770
- California Code of Regulations, title 2, section 599.771
- California Code of Regulations, title 2, section 599.772
- California Code of Regulations, title 2, section 599.773
- California Code of Regulations, title 2, section 599.774
- California Code of Regulations, title 2, section 599.775
- California Code of Regulations, title 2, section 599.776
- California Code of Regulations, title 2, section 599.776.1
- California Code of Regulations, title 2, section 599.777
- California Code of Regulations, title 2, section 599.778
- California Code of Regulations, title 2, section 599.787
- California Code of Regulations, title 2, section 599.840
- Government Code sections 19878 to 19885
- Unemployment Insurance Code section 3302.2
- NDI-FCL Frequently Asked Questions: NDI-FCL Frequently Asked Questions
- CalHR 143 - NDI-FCL Designation Form: CalHR 143 - NDI-FCL Designation Form
- Employment Development Department: NDI-FCL Presentation: Employment Development Department: NDI-FCL Presentation
- NDI-FCL Calculator Samples: NDI-FCL Calculator Samples
- NDI-FCL Leave Tracking Log Sample: NDI-FCL Leave Tracking Log Sample
- NDI-FCL Sample Memo to Employees: NDI-FCL Sample Memo to Employees
- PML 1987-023: PML 1987-023 - 12/11/1987 - Exhausting Leave Credits - Nonrepresented Employees
- PML 1988-002: PML 1988-002 - 3/8/1988 - Nonindustrial Disability Insurance/Return to Partial Work Status
- PML 1989-000-MM-013: PML 1989-000-MM-013 - 1/1/1987 - Non-Industrial Disability Insurance (NDI)/Annual Leave Benefit
- PML 1989-000-MM-017: PML 1989-000-MM-017 - 9/1/1987 - Collective Bargaining Status and Benefits
- 2102: Annual Leave
- Employment Development Department: Non-Industrial Disability Insurance - Family Care Leave
- SCO Leave Accounting Letter #19-005: Non-Industrial Disability Insurance - Family Leave Care
- SCO Payroll Letter #02-021: ENDI Calculator
- SCO Payroll Letter #04-013: Disability Supplementation and the Personal Leave Program
- SCO Payroll Letter #19-010: Non-Industrial Disability Insurance - Family Care Leave
- SCO PPM section E: Disability
Personnel Services Branch
Personnel Program Consultant , Personnel Services Branch
Chief, Personnel Management Division