CA AB123

Increases wage replacement percentages for disability insurance benefits commencing January 1, 2023, with higher rates for lower-wage workers (65-75% depending on wages) compared to the previous 55% standard.

For periods starting January 1, 2025, further increases wage replacement to 70% for higher-wage workers and 90% for workers earning 70% or less of the state average weekly wage.

Applies enhanced benefit rates only to the first 12 weeks of non-family-leave disability benefits, after which benefits revert to the standard 55% formula.

Extends the same increased wage replacement percentages to the paid family leave program for workers caring for seriously ill family members or bonding with minor children.

Makes an appropriation to the Unemployment Compensation Disability Fund to support increased benefit disbursements under the revised formulas.