California is making two changes to its State Disability Insurance (SDI) and Paid Family Leave (PFL) programs. Neither adds new duties for employers, but both change how employees access benefits:
- No more fees for medical certification forms, starting January 1, 2027
- Expanded Military Exigency leave under PFL, starting no later than July 1, 2028
What’s Changing
1. No more fees for medical certification forms (starts January 1, 2027)
To receive CA SDI or PFL family caregiver benefits, employees need a medical certificate from their doctor or practitioner. Under the new law, providers can’t charge an administrative fee to:
- Complete the initial certificate
- Do a recertification exam
- Complete forms needed to keep receiving benefits
Providers can still bill for medical care and collect normal copays, coinsurance, and deductibles. Some claimants had reported paperwork fees of up to $300.
2. Expanded Military Exigency leave (starts by July 1, 2028)
PFL covers Military Exigency leave: time off to handle family needs when a spouse, domestic partner, child, or parent is on active military duty. Today, it only applies to deployments to a foreign country. The new rules also cover:
- Deployments within the U.S.
- Military training
- National Guard members
- State active duty, not just federal
This takes effect July 1, 2028, or sooner if the Employment Development Department (EDD) adds PFL to its new EDDNext claims system before then.
Why It Matters
- Faster certification. With no paperwork fee, employees may get certified sooner and it may mean fewer stalled claims for employees. Littler notes this may also indirectly affect paperwork for disability accommodation requests.
- More employees may qualify for Military Exigency leave. This includes employees whose family members serve in the National Guard, train in the U.S., or are called up by the state, such as during a natural disaster.
What to Do
- Review your Military Exigency leave policies. If your handbook limits this leave to overseas deployments, plan to update it before the new rules take effect.
How Sparrow Helps
Sparrow tracks changes like these and turns them into clear guidance, so you know when your policies need updating.
For employees, Sparrow guides them through filing California SDI and PFL claims, including which leave type fits their situation and what documents they’ll need. Starting in 2027, their medical certification shouldn’t come with a paperwork fee.
Sources: AB 2292 (Chapter 734, Statutes of 2026) and AB 2054 (Chapter 729, Statutes of 2026), California Legislative Information; Littler, “California Revises State Disability and Family Leave Insurance Provisions” (Sept. 30, 2026); California Assembly Insurance Committee analysis of AB 2292.