Non Industrial Disability Insurance

In this article, we’ll explore Non-Industrial Disability Insurance (NDI), including its policies and the employees who qualify for benefit payments.

We’ll also cover how the Employment Development Department (EDD) manages NDI for eligible workers who have experienced wage loss due to a non-work-related injury or disability.

The article will further delve into Non-Industrial Disability Insurance- Family Care Leave (NDI-FCL) and its relationship with State Disability Insurance (SDI).


Non Industrial Disability Insurance

Non industrial disability insurance

The Employment Development Department (EDD) manages the Nonindustrial Disability Insurance (NDI) Program, which provides wage replacement benefits to eligible employees who have experienced a non-work-related disability or injury resulting in a loss of income.

If an employee is incapable of carrying out their typical or habitual duties due to a physical, mental, or medical condition, then they will be classified as disabled for that particular day.

Who is eligible for NDI

  • To qualify, the individual must be an active member of PERS/STRS and hold compensated employment as either a permanent or probationary full-time CSU employee.
  • A permanent part-time CSU employee with at least 6 monthly compensated pay periods of service, or an employee appointed half-time or more for one year or one academic year or more.
  • The individual must have a verified and accepted disability by the Employment Development Department in Sacramento.

How long is the waiting period for NDI

If an employee with disabilities wishes to receive benefits, they must undergo a waiting period of seven (7) consecutive calendar days, beginning on the first full day of their disability.

However, if they are admitted to a hospital or an EDD-approved nursing home for a full day, they may not need to undergo the waiting period.

Whether the waiting period is paid or not depends on the employee’s available sick leave, vacation time, and CTO.

When to use leave credits

Prior to the payment of ANY NDI benefits, it is mandatory for the employee to exhaust all their accrued sick leave.

The employee has the choice to utilize their accrued vacation, Personal Holiday, or CTO; however, it is not obligatory.

If the employee decides to use any of these credits, then all of the chosen credits must be utilized.

How NDI payments are made

Monthly NDI payments will be issued and reported as earnings for tax purposes, similar to a salary or wage. The payments are subject to adjustment based on the following criteria:

  • While on Nonindustrial Disability Leave, the employee will not have their PERS/STRS contributions deducted as they will not earn any service credits during this time.
  • The State will deduct the employee’s regular contribution to health insurance, and they will pay the employer contribution if the approved NDI covers the employee’s share of the premium.
  • If the deduction amount is covered by the approved NDI, they will continue to deduct voluntary deductions like parking, credit unions, and employee organizations. But the employee can cancel the deduction.
  • It is essential for employees receiving NDI benefits to check their check stub to confirm their benefit and miscellaneous deductions.

How to apply for NDI

In case of a non-work related injury or illness that requires an employee to take a prolonged leave of absence from work, they ought to:

  1. Inform their supervisor immediately.
  2. Get in touch with the Office of Human Resources to initiate the necessary paperwork for an NDI claim.
  3. The claim form will be prepared by the Human Resources and Payroll team and sent to the disabled employee along with detailed instructions.
  4. Fill out the employee section of the claim form and forward it to their physician for completion.

Approval and benefit information

he University facilitates the application process for NDI benefits, but the Employment Development Department (EDD) of the State of California is responsible for managing all claims.

EDD assesses the period of eligibility, which is contingent upon a doctor’s certification, and approves the disbursement of payments for claims.

NDI claim process

  • Review your eligibility
  • File claim
  • Have your eligibility status determined
  • Continue or stop the benefits

Non-industrial disability insurance-family care leave (NDI-FCL)

This policy offers covered state government employees a means of receiving partial wage-replacement benefits when they experience a loss of income due to various reasons.

Eligibility for NDI-FCL

  • Caring for a seriously ill family member
  • Bonding with a new child.
  • Participating in a qualifying military event.

Who is not covered by NDI-FCL

Certain state employees who are not protected by NDI-FCL under a negotiated agreement are covered under State Disability Insurance (SDI).


The article discusses Non-Industrial Disability Insurance (NDI) and its policies for providing wage replacement benefits to eligible employees who have experienced a non-work-related injury or disability.

Eligibility criteria for NDI are listed, and the waiting period, use of leave credits, and payment methods are explained.

The article also covers how to apply for NDI and the process of approval and benefit disbursement.

Additionally, the article introduces Non-Industrial Disability Insurance-Family Care Leave (NDI-FCL) and its eligibility criteria for covered state government employees to receive partial wage-replacement benefits due to various reasons.

Lastly, the article mentions that certain state employees are covered under State Disability Insurance (SDI) instead of NDI-FCL.

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