Maternity Leave for Business Owners!

Hey Ashley! Great question—yes, as a co-owner of an LLC S-Corp who’s on payroll, you’re technically considered an employee and can be eligible for California’s Paid Family Leave (PFL) through the Employment Development Department (EDD).

Here’s what you should know:

1. Enroll in State Disability Insurance (SDI): As long as your business has been paying into California's SDI fund (which is typically withheld from employee paychecks), you may qualify for Paid Family Leave benefits when you take time off to bond with your baby.


2. Eligibility: You must have earned at least $300 in wages in the base period during which SDI deductions were taken. If you’re on payroll and deductions have been made, you’re likely eligible.


3. Apply for Benefits: You can apply through edd.ca.gov. You’ll want to apply about a week or so before your planned leave. You'll need to create an account on SDI Online to submit your Paid Family Leave claim.

4. Duration & Pay: California’s PFL provides up to 8 weeks of partial wage replacement. The amount is typically 60–70% of your average weekly wages, depending on income.


5. Consider Disability Leave Too: You may also qualify for State Disability Insurance (SDI) for pregnancy-related medical leave before birth. This can add a few more weeks of paid time off (usually 4 weeks pre-birth and 6–8 weeks post-birth for recovery).


6. Document Everything: Make sure your payroll clearly shows the SDI withholdings and that your business is compliant with EDD requirements.

Thank you ! This is incredibly helpful! Do you know if I need to stop my payroll for myself during this period in order to be eligible for this, as well as the disability leave?

So kind of you to provide all of these details!