1411 - Non-Industrial Disability Insurance (NDI) (Historical View)

** Effective: 4/22/2026 9:53:50 AM - Present **

Status: Active

Change Notes

This policy has been updated to reflect the following changes: Formatting and/or clean up edits. Government Code 19878 was updated to include language adding CEA eligibility effective October 1, 2025, with a retro date of July 1, 2025. BU 13 negotiated to add Family Care Leave to their ENDI eligibility effective January 1, 2026.

Category

Benefits and Insurance

Audience List

Synopsis

This policy:

Introduction

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, 12, 13, 16, 18, and 19 are eligible for the NDI program. Effective July 1, 2025, a state officer or employee appointed to a Career Executive Assignment (CEA) is eligible for the NDI program. CEA’s claiming benefits for a disability period commencing between July 1, 2025, and October 1, 2025, must file a completed claim no later than 41 days following October 1, 2025.

Employees eligible for NDI, who are enrolled in the Annual Leave Program (ALP), are eligible for Enhanced Non-Industrial Disability Insurance (ENDI) benefits.  

Employees excluded from bargaining and employees represented by BUs 2, 7, 9, 12, 13, and 16, and who are enrolled in the ALP, 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.

Employees in BUs 1, 3, 4, 10, 11, 14, 15, 17, 20, and 21 are eligible for State Disability Insurance (SDI).

Statement

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 childbirth.

Employees enrolled in the ALP are eligible to receive ENDI.  The differences between NDI and ENDI are described below.

NDI Eligibility and Benefits

Employees are eligible for NDI if they are:

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 the ALP 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 using Vacation/Sick 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.

ENDI Benefits

Employees enrolled in the ALP 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 at a rate of 75 percent or 100 percent income replacement at the time they file the ENDI claim. With the exception of 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 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 complete 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 which 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 the ALP from the Vacation/Sick 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 into ALP and receiving ENDI benefits.

NDI Family Care Leave (FCL)

Overview

Eligible excluded employees and employees represented by a BUs 2, 7, 9, 12, 13, and 16, who are enrolled in the ALP, are eligible for NDI-FCL. Effective January 1, 2026, - BU 13 employees who are enrolled in the ALP are eligible for this program.

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 at a rate of 75 percent or 100 percent income replacement at the time they file the NDI-FCL claim.

Eligibility

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.

Retirement

Employees will not earn CalPERS or 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 leave credits used for supplementation. 

Other

NDI-FCL includes 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 their disability, may upon the discretion of their 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 exceeds 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.

Application

NDI

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.

NDI-FCL

An employee is eligible for up to six weeks (42 days) of NDI-FCL, which can be taken all at once or intermittently. Each day an employee claims NDI-FCL is 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 for an 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.

The EDD has a 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 or in an eligible BU and enrolled in the ALP.

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 in 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) 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 is located under the Resources section below).

Authorities

Resources

FAQs

Forms

Related Policies

Web Pages

Authorized By

Melissa Russell
Chief, Personnel Management Division

Contact Person

Personnel Services Branch
Personnel Program Consultant, , Personnel Services Branch
Phone: 916-909-3702
Fax: 916-327-1886
Email: psb@calhr.ca.gov

Superseded Policies

Not Applicable.