How do I coordinate my California State Disability Insurance (SDI) payments with my application for federal Social Security Disability Insurance (SSDI)?

You must apply for California SDI first, and if your disability is long-term, you should also apply for federal SSDI. California's Employment Development Department (EDD) will require you to apply for SSDI and will later claim reimbursement from any retroactive SSDI benefits you receive. Here is how to coordinate the benefits: Step 1: File for California SDI Immediately Apply for State Disability Insurance (SDI) through the California EDD website via SDI Online as soon as you become unable to work. You must file your claim within 49 days of your disability's start date. You will need medical certification from your doctor to complete the application. Step 2: Apply for Federal SSDI If your disability is expected to last for one year or longer, apply for Social Security Disability Insurance (SSDI) through the Social Security Administration (SSA). You can complete the application online at ssa.gov. It is wise to apply for SSDI soon after you apply for SDI. Step 3: Respond to the EDD's Notice The EDD will likely send you a form, "Notice of Requirement to Apply for Social Security Disability Insurance Benefits" (DE 2517). You must complete, sign, and return this form by the deadline to certify that you have applied for SSDI. Failure to do so can stop your SDI payments. Step 4: Report Your SSDI Award to the EDD When the SSA approves your SSDI claim, you will likely receive a lump-sum payment for past-due benefits covering a period when you also received SDI. You must immediately report the SSDI approval and the amount of this retroactive payment to the EDD. Step 5: Repay the SDI Overpayment Because you cannot receive payment from both programs for the same days of disability, your retroactive SSDI award creates an overpayment of your SDI benefits. The EDD will send you a Notice of Overpayment with the amount you owe. You must use your SSDI back-pay to repay the EDD. In many cases, the SSA will automatically withhold this amount from your back-pay and send it directly to the EDD. Important Details and Nuances: California law prevents the payment of state and federal disability benefits for the same period. The EDD places a lien on your potential SSDI benefits to ensure repayment. SDI is a short-term program (up to 52 weeks), while SSDI is for long-term disabilities. Warnings and Limitations: Do not spend your entire SSDI lump-sum back-pay until you have settled the overpayment with the EDD. Ignoring the EDD’s requirement to apply for SSDI or repay an overpayment can result in the loss of benefits, penalties, and collection actions. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.