SDI: State Disability Insurance Definition

Stands for State Disability Insurance. Some states impose an SDI tax paid by the employer and/or employee. State Disability Insurance (SDI) is a compensation plan established by the state to support injured or ill employees, who are unable to work.

SDI Extended Definition
An injury or illness may leave an employee unable to work. State disability insurance is a state established compensation plan that supports such individuals. Disability includes any physical or mental injury or illness that prevents an employee from performing regular tasks. Disability insurance benefits available to a worker usually depend on the agreement been the employee and the employer. For further resources on disability insurance, please visit the U.S. Dept. of Labor (DOL) website.

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Last Updated By

Jenna Hutkowski | May 01, 2023