City of Fortuna
State Disability Insurance/Paid Family Leave
Integration of Wages Policy
Regular Full-time employees, 1.0 Full-time Equivalent (FTE), who pay into State Disability Insurance (“SDI”) may opt to integrate wages with SDI or Paid Family Leave (“PFL”) during a leave of absence.
Integration of SDI or PFL benefits is a process in which an SDI or PFL weekly benefit amount is paid to the employee and the employee is also paid wages using their available accrued leave (sick, comp time, floating holiday, vacation) to cover the difference between gross weekly wages and what is received from SDI/PFL.
City of Fortuna employees who are absent from duty due to a qualifying SDI or PFL reason, elect to integrate wages, and have been authorized to use the City paid leave benefit, shall be eligible to integrate wages and could receive up to 100% of their gross weekly wages depending upon the length of leave, accrued leave balance, and SDI or PFL eligibility.
If an employee qualifies for SDI/PFL benefits, SDI/PFL benefit levels are based on a formula determined by the state Employment Development Department (“EDD”). SDI benefits are payable starting on the 8th calendar day of absence from work, or the first day of hospitalization, whichever comes first. In most circumstances, PFL benefits are payable starting the 1st calendar day of an absence from work for a qualifying reason.
1. PAY OPTIONS: You may select one of the options below for integration of benefits by completing the City of Fortuna Integration of Benefits form (attached) and returning it to Human Resources. An employee desiring to integrate benefits must complete the City of Fortuna Integration of Benefits form at least two (2) weeks prior to a known absence or as soon as possible following an unexpected absence.
Option 1: Integrate paid leave with SDI/PFL benefits (steps to follow). • Complete and submit a City of Fortuna Integration of Benefits form to Personnel. • When applying for SDI/PFL through EDD, check the Integration of Benefits box. • E-mail or bring a copy of the SDI/PFL benefit award letter from EDD indicating payment amounts to Personnel within five (5) working days of receipt.
Until the benefit award letter is provided to Personnel, employees may use their own accrued, unused leave balances during the seven (7) calendar day waiting period. Starting the 8th day of the employee’s leave, the employee may use their accrued/earned, unused leave hoursfor 30% of their gross weekly wages, which will be calculated at the employee’s hourly rate. City will assume a default 70% SDI/PFL rate for initial calculations.
Once the employee’s benefit award letter is submitted to Personnel, the amount of integration will be adjusted according to the benefit amount provided by SDI/PFL. • Once all accrued/earned leave hours have been exhausted, integration of benefits shall cease.
• There is no retroactive integration of benefits. If you receive more paid leave hours than you are eligible for due to a late request for integration or a delay in your claim, you must work with the EDD to return those overpayments. By law, you may not receive more than 100% of your gross salary while integrating benefits.
Option 2: Collect only SDI/PFL benefits, decline to integrate and freeze all leave balances resulting in a leave without pay status. The City of Fortuna Integration of Benefits form must indicate this choice. If there is a delay in returning your form and you receive paid leave hours in addition to SDI/PFL that exceeds 100% of your gross weekly wages, you must work with the State Employment Development Department (EDD) to return those overpayments.
Option 3: Use leave balances until exhausted and do not receive SDI/PFL benefits. This is the default option.
Option 4: Take an unpaid leave of absence. Do not collect SDI/PFL benefits and do not use leave balances. This must be approved by the Department Head and City Manager.
Benefits example:
Time period SDI Benefit City Benefit (paid
leave)
Total Benefit Timesheet Coding
7-calendar day
waiting period.
None. Utilize any paid
leaves.
100% of gross
salary using leave
until exhausted.
Code desired leave type
for first 7 calendar days.
Applied for
SDI/PFL
awaiting EDD
benefit award
letter.
Initially
estimated at
70% of gross
weekly
wages.
Utilize paid leaves for
remaining 30% of
gross weekly wages.
Up to 100% of gross
weekly wages.
Delays in EDD
processing will result
in City benefits of
only
30% of gross
weekly wages.
Up to 30% gross weekly
wages using leave.
EDD benefit
award letter
received and
processed
through
Personnel.
Benefit will
be adjusted
per EDD
payment
percentage.
Utilize paid leaves
for remaining
portion of gross
weekly wages not
paid by EDD.
Up to 100% of
gross weekly
wages.
Use leave balances up
to the percentage
provided by Personnel
per the EDD
calculation.
2. It is the responsibility of the employee to file an SDI or PFL claim. The City is not involved in the application/benefit payment process and is not responsible for the benefit amount an employee receives from EDD. Employees integrating benefits with the City must check the box indicating integration of benefits when they complete their SDI application. The role of the City is limited to verifying employment, pay rate, date of absence, and integrating your leaves.
3. Depending upon leaves accrued under the applicable MOU, leave balances that can be used for integration with SDI/PFL are:
1) Sick leave (unlimited use for self; up to 48 hours to care for a sick family member; can’t be used for baby bonding, see Labor Code §246.5(c)(1))
2) Comp Time Off
3) Floating Holiday
4) Administrative Leave
5) Vacation
4. Integration of benefits will continue unless stopped by the employee or when all leave balances are exhausted. When an employee exhausts all available City paid leave balances or opts out of integration, and has exhausted all FMLA/CFRA leave rights, the employee must request an unpaid leave of absence in accordance with applicable MOU rules or the City’s Personnel Rules.
5. The employee’s portion of health, dental, life, vision and voluntary deductions (e.g. additional life insurance) will be deducted from the employee’s paycheck if there are sufficient gross wages available. Employees in an unpaid leave status, or with insufficient gross wages to cover their portion of insurance premiums or voluntary deductions, will be required to work with Personnel to set and adhere to a payment schedule to prevent their benefits from lapsing.
6. Sick leave and vacation shall accrue at the employee’s usual rate during the period the employee receives the integrated leave and SDI/PFL benefits. Accruals will end when the employee exhausts all their own leave balances even if they are still receiving SDI/PFL benefits. Accruals will not continue while in unpaid status or receiving only SDI/PFL.
7. To the maximum extent permitted by law, the City designates paid and/or unpaid leave due to reasons that are eligible under Family and Medical Leave (FMLA) and/or California Family Right Act (CFRA) to run concurrently with, and be counted against, an employee’s FMLA and/or CFRA leave entitlements.
8. This policy shall be interpreted in accordance with applicable Memoranda of Understanding (MOUs) and Personnel Rules. In the event of a conflict, the MOU shall control.
STATE DISABILITY INSURANCE
DISABILITY INSURANCE (SDI) & PAID FAMILY LEAVE
(PFL) LEAVE OF ABSENCE (LOA)
INTEGRATION ELECTION
FORM
Name (Print):
Last Day of Work: Expected Duration of LOA:
Please elect one of the options below (required):
1. INTEGRATE: I elect to integrate my paid leave with SDI/PFL benefits during my LOA.
2. SDI/PFL ONLY: I elect to not use my paid leave with SDI/PFL benefits during my LOA.
3. PAID LEAVE ONLY: I do not intend to file a claim for SDI/PFL benefits and will use my unused leave balances.
4. UNPAID LEAVE: I do not intend to file a claim for SDI/PFL benefits and will not use any of my unused leave balances.
In addition to your election above, by signing this form you agree to the following conditions:
1. Once you elect integration (Option #1 above), you may not alter this election until your paid leave is exhausted or until you return to work.
2. If you choose Option #2 above, you may only change your election upon extension of your current LOA.
3. If you submit this Integration Election Form late, there is no retroactive integration – the City will not process a payroll adjustment to restore your leave balances.
4. The City default will pay 30% of your gross weekly wages when integrating with your allowed leave balances.
The percentage will be adjusted when you submit your EDD benefit statement to Personnel (within 30 days of receipt), not to exceed 100% of your gross weekly wages.
5. During your LOA, you may choose the order in which your leave balances are exhausted by completing the table below. Sick leave will be the default.
Order Type of Leave
Sick (unlimited use for self; up to 48 hours for a sick family member; can’t be used for baby bonding, see Labor Code § 246.5(c)(1)) Vacation
Comp Time (CTO)
Administrative Leave
Floating Holiday
I have read, understand, and will comply with the terms and conditions described in the SDI Benefits & Integration packet and Integration Election Form.
Signature Date