The California Employment Development Department (EDD) has released the 2024 Voluntary Plan Employee Contribution and Benefit Rate.

Employers with employees located in California are generally required to withhold and send state disability contributions to the EDD.

Of note, Senate Bill (SB) 951, which was signed in 2022, eliminated the Maximum Contribution and Taxable Wage Ceiling effective January 1, 2024.  These concepts can be disregarded by employers, subject to future legislation.

The 2024 rates are as follows:

“Employee Contribution Rate”1.1%
“Maximum Weekly Benefit Amount” (WBA)$1,620.00
“Maximum Benefit Amount” (WBA X 52 weeks)$84,240.00
“Assessment Rate” (this figure is the product obtained by multiplying the worker contribution rate by 14% or 1.1 X 14%)0.154%

The Employee Contribution Rate is the percentage withheld from the wages of employees who are covered by the Disability Insurance (DI) and Paid Family Leave (PFL) programs.

The contribution rate is relevant to employers who must comply with San Francisco’s Paid Parental Leave Ordinance (PPLO).  The city of San Francisco requires most employers with twenty or more employees worldwide to supplement PFL benefits received by employees to bond with a new child. 

During the PFL leave period, the PPLO supplemental compensation provided by an employer, added to the PFL wage replacement benefit received from the EDD, must equal 100% of the employee’s gross weekly wage, subject to a cap. For 2024, the PPLO cap remains $2,700 per week, as it was the year prior. The San Francisco Office of Labor Standards Enforcement has a calculator on its website to assist employers in determining how much supplemental compensation they must pay to eligible employees per week.

The Assessment Rate is relevant to employers that maintain a state-approved voluntary plan (VP), which is a disability insurance plan that an employer can offer to its California employees as a legal alternative to mandatory DI and PFL. The Assessment Rate is the amount that an employer pays to the EDD as an administrative expense for maintaining a voluntary plan.

Jackson Lewis continually monitors governmental changes affecting California employers. If you have questions regarding Paid Family Leave, the Paid Parental Leave Ordinance or other wage replacement requirements contact a Jackson Lewis attorney to discuss.

Photo of Donald P. Sullivan Donald P. Sullivan

Donald P. Sullivan is a principal in the San Francisco, California, office of Jackson Lewis P.C. Donald has more than 20 years of experience defending and counseling employers, as well as fiduciaries, sponsors, and insurers of employee benefit plans, in state and federal…

Donald P. Sullivan is a principal in the San Francisco, California, office of Jackson Lewis P.C. Donald has more than 20 years of experience defending and counseling employers, as well as fiduciaries, sponsors, and insurers of employee benefit plans, in state and federal courts and before state and federal agencies, including the United States Department of Labor, the Equal Employment Opportunity Commission, and California’s Departments of Industrial Relations and Fair Employment and Housing.

In his employee benefits practice, Donald regularly advises and represents both pension and welfare benefit plans and their fiduciaries in class action and single-participant litigation. With respect to pension plans, Donald defends plans and fiduciaries against lawsuits alleging imprudent investments in employer securities, imprudent selection of investment options, excessive administrative fees, and entitlement to benefits. With respect to welfare plans, Donald defends plans, fiduciaries, and insurers of insured benefit plans in both ERISA and non-ERISA actions seeking the payment of short and long-term disability, life and medical benefits. Donald also frequently represents employee benefit plans and their fiduciaries in investigations conducted by the U.S. Department of Labor.

In his employment practice, Donald defends clients in cases alleging violations of the California Labor Code related to the payment of wages, as well as in lawsuits alleging discrimination on the basis of race, gender, age and disability in violation of California’s Fair Employment and Housing Act and federal statutes, including Title VII, the ADA, and the ADEA. He has extensive experience defending both single-plaintiff and class action ERISA and California wage and hour lawsuits. Integral to Donald’s practice are the privacy protections afforded to individuals under the Health Insurance Portability and Accountability Act (HIPAA).

Donald’s interest and commitment to the employment and employee benefits practice has very deep roots. In college, he worked for the Office of Labor Relations and Collective Bargaining for Washington, D.C. He worked for the U.S. Equal Employment Opportunity Commission while in law school. After law school, he began representing employers and management in employment and labor disputes, while developing a sub-specialty in employee benefits, ERISA, and healthcare. Donald was a law clerk for the Honorable Everett A. Martin, Fourth Judicial Circuit of Virginia, 1996-1997. Before joining Jackson Lewis, Donald practiced in the Chambers USA awarding-wining labor and employment group of a national Philadelphia-based law firm.

Gonzalo Morales

Gonzalo Morales is an associate in the San Francisco, California, office of Jackson Lewis P.C. He represents clients in all areas of employment and ERISA litigation.

Gonzalo defends employers in state and federal courts, in class action or single plaintiff matters, involving claims…

Gonzalo Morales is an associate in the San Francisco, California, office of Jackson Lewis P.C. He represents clients in all areas of employment and ERISA litigation.

Gonzalo defends employers in state and federal courts, in class action or single plaintiff matters, involving claims for wage and hour violations, breach of contract, discrimination, harassment, retaliation, wrongful termination, and unfair competition. He also defends ERISA single plaintiff and class action matters involving claims for breach of fiduciary duties and benefits.

While attending UC Hastings College of the Law, Gonzalo was an articles editor of the Hastings Law Journal and completed a judicial externship for the Honorable Jeffrey S. White of the U.S. District Court for the Northern District of California.