How does vacation time or pay affect Disability Insurance and Paid Family Leave?

Vacation time or pay is not in conflict with Disability Insurance (DI) and can, therefore, be received by an employee while they are receiving DI benefits.

Employers do have the option of requiring employees to use up to two weeks of their vacation time before receiving Paid Family Leave (PFL). If the employer does require that vacation time be used prior to receiving PFL, any vacation pay received would be in conflict with PFL benefits and may affect the claimant’s benefit amount.

To learn more about Disability Insurance and Paid Family Leave, please visit the State Disability InsuranceFrequently Asked Questions section of the Employment Development Department’s Web site.