Disability

You’re automatically enrolled in California Voluntary Disability Insurance (VDI). Here’s how it works:

• You pay 0.5% of the first $110,000 of your pay each year, up to $550. 
• When you can’t work because of your own medical condition (including pregnancy), you receive 75% of your regular pay for up to 52 weeks. This money is not taxed, so the amount you receive may be close to your regular take-home pay.
• When you take time off to bond with a new baby or care for another family member, you receive 100% of your regular pay for up to 16 weeks. Federal income tax (but not state tax) will be withheld from your payments. You may owe state tax on these payments when you file your state tax return.
• Overtime, shift differentials, retention incentives, and bonuses are not included when calculating your STD benefit. The maximum weekly benefit payment is $4,800.
• The amount of your benefit payment is calculated on your base pay at the time your leave begins and is fixed for the duration of your leave.  Leave taken intermittently for the same reason is considered one leave, so the benefit payment will remain the same as on the initial start date of your leave, even if there is a change in your base pay rate.
• If you are unable to work beyond 52 weeks, your long-term disability benefit will begin in week 53.

Learn more in the VDI statement of coverage [PDF].

You’re automatically enrolled in short-term disability (STD) insurance as a new employee or during annual benefits Open Enrollment. Here’s how it works:

• You pay 0.5% of the first $120,000 of your pay each year (less any cost for state-mandated disability insurance), up to $600. 
• When you can’t work because of your own medical condition (including pregnancy), you receive 75% of your regular pay for up to 180 days. This money is not taxed, so the amount you receive may be close to your regular take-home pay.
• When you take time off to bond with a new baby or care for another family member, you receive 100% of your regular pay for up to 16 weeks. Federal income tax (but not state tax) will be withheld from your payments. You may owe state tax on these payments when you file your state tax return.
• Overtime, shift differentials, retention incentives, and bonuses are not included when calculating your STD benefit. The maximum weekly benefit payment is $4,800.
• The amount of your benefit payment is calculated on your base pay at the time your leave begins and is fixed for the duration of your leave.  Leave taken intermittently for the same reason is considered one leave, so the benefit payment will remain the same as on the initial start date of your leave, even if there is a change in your base pay rate.
• If you are unable to work beyond 180 days, your long-term disability benefit will begin on day 181.

Learn more about the Lam short-term disability plan [PDF] and your state disability plan (for employees in Colorado, Massachusetts, New Hampshire, New Jersey, New York, Oregon, and Washington).

Think before you opt out

In some states, as a new employee and during Open Enrollment, you can opt out of the STD plan. If you decline coverage, you will not receive any STD benefits if you need to miss work because you have a baby, get sick, or need to care for a family member.