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Can I file for SDI instead of unemployment when employer stopped paying but won't lay me off?

Hi all, I'm in a really weird situation with my disability claim. I've been having severe back pain that my doctor says requires 6-8 weeks of recovery, but my employer is making things complicated. They've been having financial problems and haven't paid anybody in almost a month, but they won't officially lay anyone off either. My doctor filled out the medical certification for SDI, but I'm confused about how to list my employment status. Am I still employed if they're not paying me? Will EDD reject my claim because technically I wasn't laid off? The company gave us all these "partial payment" checks for $250 while promising to pay us the full amount "when things improve," but I can't wait that long with my medical bills piling up. Has anyone filed for disability benefits while technically still employed but not being paid? My HR person (who is also not getting paid) suggested I apply for unemployment instead, but I legitimately cannot work due to my condition. I'm worried about messing up the application and delaying benefits even more.

Chris King

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You absolutely CAN file for SDI even if you're still technically employed! The key thing is that you have a medical condition preventing you from working, which you do. Your employment status isn't as important as having the medical certification from your doctor showing you're unable to work. When filling out the application, just be honest about your current employment situation. There's a section where you can explain special circumstances. The fact that they haven't paid you actually strengthens your case, not weakens it. Make sure your doctor has completed the medical certification correctly - that's the most important part for SDI approval. Your wage information will come from previously reported earnings from your employer anyway.

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Rachel Clark

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This happened to my sister last year! Her company was going under but kept everyone on "employed" status with no pay. She got approved for SDI with no problems when she needed surgery. The EDD looks at your reported wages from previous quarters, not your current employment status.

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Zachary Hughes

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your doctor is the key here not ur employer!!! i was in almost EXACTLY the same situation in 2025 when my employer was going bankrupt (they eventually closed down completely). I had a serioius carpal tunnel issue and couldnt work. You need to apply for SDI not unemployment!!! unemployment is for when ur able to work but can't find a job. disability is when you CANT work due to medical issues. if your doctor certified you then you qualify 100%. whatever you do DONT CASH THOSE PARTIAL CHECKS YET!! at least talk to edd first because that could potentially affect your benefit calculation.

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Thank you! That makes me feel better. I haven't cashed the check yet. Do you remember how long it took for your SDI claim to go through? I'm getting really anxious about paying rent next month.

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Mia Alvarez

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Im really sorry about your situation! But unemployment and disability are totally different programs. If your doctor says you cant work you need SDI not unemployment. Your HR person is giving bad advice. You have to be able and available to work to get unemployment which contradicts your doctors orders.

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That's what I thought too! I was confused why she would suggest unemployment when I physically can't work. I guess everyone at the company is just panicking about the financial situation.

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Carter Holmes

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Make sure you file your SDI claim ASAP. There's a 7-day waiting period before benefits start, and then it takes about 14 days for EDD to process your claim (if there are no issues). Since you have a valid medical certification, you should qualify regardless of the weird situation with your employer. When you fill out the employment section, just list your employer normally and note that you haven't been paid recently. EDD will calculate your benefit amount based on your highest-earning quarter in the base period (which is earlier than your current non-payment situation). You might want to try calling EDD directly to explain your situation, but good luck getting through to anyone. I had to use this service called Claimyr (claimyr.com) to get connected to an agent without waiting for hours. They have a video showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd. Totally worth it when I was stuck in a complicated claim situation like yours.

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Thank you for the detailed info! I'll check out that service - I tried calling EDD yesterday and gave up after being on hold for 45 minutes.

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Sophia Long

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Just to add a bit more clarity to what everyone's saying - SDI benefits are based on your BASE PERIOD earnings, which is typically 5-18 months before your disability claim begins. So your current non-payment situation shouldn't affect your benefit amount calculation. The most important parts of your application are: 1. Medical certification from your doctor (must be complete) 2. Accurate reporting of your last day worked before disability 3. Honest explanation of your employment situation Make sure to keep copies of everything you submit. The EDD system isn't exactly known for its efficiency...

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Angelica Smith

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THIS!!! I went through so much trouble because I didn't keep copies and then when EDD "lost" my paperwork I had to start all over again. DOCUMENT EVERYTHING!

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Logan Greenburg

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wait did yu actually get a formal diagnosis?? i think thats the most important part here not the employment stuff. I tried to get disability for my back too and they denied me because my doctor didn't specify exactly what was wrong, just said "back pain" which wasnt specific enough. Make sure your doctor wrote down an actual diagnosis with recovery timeline, not just symptoms!!!!!

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Yes, I was diagnosed with two herniated discs (L4-L5 and L5-S1) with nerve compression. My doctor specified an 8-week recovery period with physical therapy before re-evaluation. Is that specific enough?

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Logan Greenburg

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That sounds way better than what I had! You should be good with that diagnosis. Just make sure thats exactly what the doctor put on the form.

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Zachary Hughes

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one more thing - when you file for sdi make SURE you indicate the correct last day worked. This is super important! If you put the wrong date it can mess everything up and delay your claim for weeks while they investigate. The last day worked should be the last day you physically performed work, even if you weren't paid for it.

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Thanks for the tip. My last day was April 12th - that's when my back pain got so bad I couldn't continue. I've been out since then with my doctor's orders.

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Rachel Clark

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has anyone talked to your employer about just laying people off officially so you can all get benefits? seems weird they want to keep everyone employed but not pay anyone. my company did something similar but finally the HR director convinced the owner to do official layoffs because it was better for everyone.

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A few people have tried talking to the owner, but he's convinced he's going to get a big contract any day now that will save the company. He doesn't want to lose his staff when that happens. It's frustrating because nobody believes it at this point.

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Carter Holmes

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After reading all these comments, I think you should definitely proceed with your SDI claim right away. Your situation is actually quite common - people can be employed but unable to work due to medical conditions. That's exactly what SDI is for. Based on your diagnosis and doctor's certification, you have a strong claim. Just be upfront about the employment situation and focus on the medical aspect. Your back condition is the key factor here, not the employer's financial problems. Good luck with your recovery! Back injuries are no joke - I've been there and it took me a full 10 weeks to get back to normal.

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Thank you! I'm starting to feel more confident about filing for SDI now. I appreciate everyone's advice and support.

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