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Transitioning from SDI to unemployment when employer can't reinstate position - eligible for UI?

My disability leave has been a rollercoaster, but now my SDI benefits are ending on May 28th. I've been out for almost 5 months for a back injury (warehouse accident), and I just had a really uncomfortable conversation with my supervisor yesterday. Apparently, they've 'restructured' during my absence and strongly hinted they might not have a position for me anymore when I'm cleared to return. I'm honestly panicking because my doctor is only clearing me for light duty work with restrictions, and my employer seems to be using that as an excuse. They kept saying things like "we'll see what's available" and "the business needs have changed." Can I apply for unemployment if they don't take me back? Do I need to wait until they officially say there's no position, or should I apply as soon as my SDI ends? I've never been on unemployment before and have no idea how the transition from disability to UI works. Will there be a gap between benefits? I can't afford to go without income right now with rent already behind.

Lucy Taylor

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Yes, you can apply for UI benefits if your employer doesn't have a position for you when your SDI ends. This is actually more common than you might think. You should apply for unemployment immediately after your SDI benefits end - don't wait for an official termination notice. Under California law, if they can't accommodate your work restrictions, that's considered a valid reason to qualify for UI benefits. Just make sure you're able and available for work (even with restrictions) when you apply. The EDD will likely contact your employer to verify the situation, so be prepared to explain that they couldn't accommodate your medical restrictions or return you to your position.

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Isaac Wright

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Thank you so much! That's a relief to hear. Should I let my employer know I'm applying for unemployment? I'm worried they might get upset if they find out from EDD first. And do you know how long it typically takes to get the first UI payment after applying? I'm trying to figure out if I need to borrow money to cover that gap.

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Connor Murphy

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apply for unemployment ASAP dont wait!! my cousin was on SDI for like 3 months and her job did the same thing. she waited 2 weeks to apply and regretted it. EDD takes forever to process claims these days

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KhalilStar

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^^^THIS. dont wait even one day after ur SDI ends. the system is so backed up rn

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I went through this exact situation last year. Here's what you need to know: 1) File your UI claim the same day your SDI ends - not before (it'll get rejected) and not after (you'll lose benefit days) 2) When the application asks if you have a return-to-work date, select "No" since your employer has indicated they may not have a position 3) If asked why you're no longer working, select "Laid off/No work available" - not medical separation or voluntary quit 4) You'll need to be able to work with your restrictions - make sure you indicate you're available for suitable work within your medical limitations 5) Be prepared for an eligibility phone interview - they'll want to verify your employer can't accommodate your restrictions The process took about 3 weeks for my first payment to arrive, but it included backpay to my filing date. Make sure you certify on time every two weeks once your claim is established.

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Isaac Wright

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This is SO helpful. Thank you for the detailed steps! I'm definitely going to file the same day my SDI ends. Did you have to provide any documentation showing your work restrictions or that your employer couldn't accommodate them? I have my doctor's note with all my limitations but nothing in writing from my employer yet.

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Kaiya Rivera

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When I called the EDD about this same situation they HUNG UP ON ME THREE TIMES!!! 🤬 The phone system is absolutely USELESS. I spent 4 hours calling over and over just to get disconnected. The whole system is designed to make you give up!!

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Noah Irving

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wait so ur on sdi now? i thout u could work while on sdi? im so confused by all these benefit names lol

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Lucy Taylor

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No, you typically can't work while collecting full SDI benefits - that's State Disability Insurance, which is for when you're unable to work due to a non-work-related disability or illness. You're thinking of State Disability Insurance (SDI) and Unemployment Insurance (UI) which are completely different programs with different eligibility requirements. You can't collect both simultaneously.

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One other important thing: if they formally terminate you, make sure to get it in writing with the reason clearly stated. If they say it's due to your medical restrictions, that documentation will help your UI claim. Also, check if you qualify for severance - many employers will offer it to avoid potential disability discrimination claims. And don't forget to look into COBRA for continuing your health insurance.

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Isaac Wright

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That's great advice about getting the termination in writing. I'll definitely ask for that. I didn't even think about severance or COBRA! Do you know if I'll have issues with unemployment if I accept severance pay?

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Lucy Taylor

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To answer your question about severance affecting UI: Severance payments can delay the start of your unemployment benefits in California, but it depends on how it's paid out. If you receive a lump sum, the EDD may allocate that amount over several weeks and delay your benefits accordingly. If it's paid out in installments like regular paychecks, each payment could reduce your weekly UI benefit for that period. Always report any severance when you apply and when certifying.

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Isaac Wright

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Thank you for the clarification! I'll definitely report any severance if I get it. Hopefully they'll offer something, but I'm not counting on it given how they've been acting about my return.

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KhalilStar

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just curious, have u asked HR directly if they're planning to let u go? maybe ur supervisor was just being weird but they actually do have to take u back. isn't there some law about that with disabilities?

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Yes, there are laws like ADA and FEHA that require employers to provide reasonable accommodations, but they have limits. If the employer can demonstrate they can't accommodate the restrictions without 'undue hardship' or if the employee can't perform 'essential job functions' even with accommodations, they may not be required to hold the position. It's definitely worth talking directly to HR about what accommodations might be possible before assuming there's no job to return to.

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Kaiya Rivera

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Honestly, document EVERYTHING. Your employer sounds shady. If they're eliminating your position while you're on disability leave, that could potentially be discrimination. I'd consider consulting with an employment attorney before accepting any severance offer. A lot of them do free consultations.

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Isaac Wright

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I hadn't even thought about the potential discrimination angle. I've been keeping all emails and texts from my supervisor, but I'll start documenting our phone conversations too. Do you think it's worth recording conversations if I'm in California?

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Regarding recording conversations in California - be very careful here. California is a two-party consent state, meaning both parties must consent to being recorded. Recording without consent is illegal and could create bigger problems for you. Instead, take detailed notes immediately after any conversation, including date, time, who was present, and what was discussed. Send follow-up emails summarizing conversations with phrases like "As we discussed today..." to create a paper trail.

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Isaac Wright

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Got it - definitely won't record anything without consent. I like the email summary idea. I'll start doing that after every conversation from now on. Thank you!

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