COMPENSATION AND DISABILITY INSURANCE - TEMPORARY DISABILITY - 8536
Temporary Disability (TD) payments are issued by the State Compensation Insurance Fund (State Fund). Specific instructions on payroll processing relating to TD and Industrial Disability Leave (IDL) are administered by the State Controller’s Office (SCO). Refer to sections E300 and E400 of the Payroll Procedures Manual (PPM).
Most agencies/departments are legally uninsured and participate in the Master Agreement with State Fund; relatively few agencies/departments purchase an insurance policy from State Fund. State Fund processes all disability claims for agencies/departments.
Additionally, State Fund issues all TD payments that are sent directly to the claimant. TD benefits are paid when an employee is ineligible for or has exhausted their eligibility for the following:
- Industrial Disability Leave (IDL)
- Enhanced Industrial Disability Leave (EIDL) – see PPM section E400 for EIDL eligibility
- Benefits provided by Labor Code section 4800 or 4800.5.
If a claimant receives TD and the employing agency/department is covered under the Master Agreement, State Fund will bill the employing agency/department for the compensation payment and associated administrative costs. If the agency/department is insured, it is entitled to the service and support without charge. For details regarding the Master Agreement and accounting of State Fund, see SAM sections 8780 and 8780.1.
When a claimant receives IDL, State Fund will send the employing agency/department a Notification of Approval form 3290 to verify benefits paid. Once the agency/ department receives approval, the human resources office documents and keys a Miscellaneous Payroll/Leave Actions form, STD 671, into SCO’s Payroll Input Process (PIP) Miscellaneous Detail screen. Instruction for PIP exceptions and form STD. 671 completion requirements are found in sections E006 and E007 of the PPM.
An employee may use leave and holiday credits to supplement TD payments. For details, refer to the PPM section E301. Government Code section 19863.1 prohibits TD in addition to supplementation payments from exceeding an employee's full salary. If, at any time, the amount of the TD payment plus the amount of supplementation paid to the employee exceeds the employee's regular full salary, the excess supplementation amount must be recovered from the employee by the employing agency/department.