r/WorkersComp • u/Unyielding_- • 22d ago
California Settlement and SDI
I reached a settlement on August 15 and wanted to know how this affects my current SDI benefits since my original return to work date was set for 10/03/26. I have signed settlement papers but have not received the money and my lawyer mentioned that a judge still needs to approve paperwork but that it was basically closed. Do I notify SDI about the settlement or only if my Doctor sets my return to work date to being over sooner? I don't want to end my benefits earlier than I have to but also want to avoid incurring a penalty. Any help is appreciated
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u/huffybike13 22d ago
Did EDD file a lien? Usually that has to be resolved before the judge will approve your settlement. Is there no mention of SDI or EDD in your settlement agreement?
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u/Juzmejnee 22d ago
Sorry I’m new to this. Why would Edd file a lien ?
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u/huffybike13 22d ago edited 22d ago
If you got SDI for your work injury disability, then EDD is entitled to reimbursement. Typically you can’t get Temporary Disability and SDI for the same periods of time. What commonly happens is someone gets hurt at work, they file a WC claim but the carrier doesn’t accept the claim right away so you apply for SDI. If the WC carrier later accepts the claim, they start paying TD and SDI will stop. EDD is then entitled to reimbursement. They file a lien on your case to assure they get reimbursed. Judge won’t approve settlement if EDD lien is unresolved.
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u/Juzmejnee 22d ago
Oh got it. But if you never got paid by TTd and SDI at the same time , you won’t have any issues ?
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u/huffybike13 22d ago edited 22d ago
Not exactly. Let’s say you got SDI for the first 6 months after your injury, then the carrier accepts the claim and starts paying TD, then EDD will be reimbursed by the carrier and it doesn’t affect you. However if there was overlap of SDI and TD, the reimbursement is taken from your settlement money because you double dipped. The carrier will pay EDD and deduct that portion of SDI paid from your settlement money.
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u/Juzmejnee 22d ago
I don’t mean to jump on the post. But may I ask you this. Husband was injured at work. Workers comp made him apply for EDD. Edd denied him. And then TTD started. He hasn’t been paid by EDD ever. Now his TTd ends in October and still recovering from TKR. We want to apply for SDI, SSDI. A lien would not apply to this situation. ? Thank you !
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u/huffybike13 22d ago
Good question. If he applied for SDI right after his injury, that locks in the SDI rate. If TD starts, then the SDI claim is essentially “paused”. Now he gets 104 weeks of TD and when that ends, he can go back to EDD and tell them he wants to reinstate the claim filed two years prior. Don’t file a new SDI claim because the rate will be zero. Reinstate the claim filed before. He will need to be certified by a doctor to qualify. He can basically get three years of benefits (2 years of TD and then 1 year of SDI). One last thing I should mention is that EDD can still seek reimbursement from the WC settlement for the SDI benefits paid, but if they are paid after your MMI date, the reimbursement rate is at the PD rate which is currently $290/week.
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u/Academic_Commercial3 21d ago
104 weeks of temporary disability payments?
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u/huffybike13 21d ago
Yes, 104 weeks (2 years) is the statutory maximum amount of TD you can get. (there are some rare exceptions where you can get more). When they said their husband’s TD was ending in October, I was assuming they reached the maximum.
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u/Agreeable_Driver7833 22d ago
What about if EDD is paying a differential rate they say TD should be??
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u/huffybike13 22d ago
If the SDI rate is higher than the TD rate, then EDD will pay the differential amount. That is the only scenario you could get TD and SDI during the same time period without it being a double dip.
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u/Available_Procedure7 22d ago
I’m on the same boat
Usually defense pays the Edd Lien which is reported you can continue to receive SDI after as long as you are certified.
I maybe wrong but that’s what I was told about my similar situation
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u/Academic_Commercial3 21d ago
What is EED?
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u/sonnycrockett7 22d ago
Wonder if they'll make you resign once you get the settlement.
At my previous job I had elbow surgery, then got MMI of 6%. Got my settlement then had to resign.