CALIFORNIA UNEMPLOYMENT BENEFITS

Unemployment benefit in California is an initiative jointly handled by the State and the federal government to provide financial support to Californians who are out of work through no fault of their own. As of June 2020, California’s Employment Development Department EDD has processed over 6.3 million claims and paid $30.3 billion in benefits since the coronavirus pandemic started. Of that amount, $797 million is paid out to claims under the Pandemic Emergency Unemployment Compensation program.

As the number of applicants continues to increase, many Californians still have not received any benefits, and are running out of cash to live on. There is one particular roadblock – eligibility. According to the EDD, the unemployment benefits will only be given to applicants who meet the eligibility criteria and can prove they are who they say they are.

This article provides general information about the various unemployment benefits in California, how they are calculated, including the eligibility requirements needed.

COLLECTING UNEMPLOYMENT BENEFITS IN CALIFORNIA

California employees that have been laid off due to the COVID-19 pandemic or for other reasons may be eligible for unemployment benefits. The regular unemployment benefits in California provide eligible applicants with 26 weeks of insurance benefits.  The EDD determines your weekly benefit amount by dividing your wages for the highest-paid quarter of the base period by 26, up to a maximum of $450 every week.

While the State provides most of the benefits to employees based on the employment taxes collected from California employers, the federal government has also approved some benefits as a response to the surging unemployment triggered by the coronavirus pandemic.

Apart from California’s 26 weeks of unemployment benefits, applicants are entitled to an additional 13 weeks of benefits through the federal Pandemic Emergency Unemployment Compensation to make a total of 39 weeks coverage. Employees that are eligible for the regular California UI benefit will receive an additional $600 benefit weekly on top of the State-provided benefits. The extended relief is available until December 31, 2020.

There is another 20 weeks of benefits from the Federal Emergency Benefit Program, including the 7 extra weeks of benefits in California’s new budget plan. This is needed so that California residents can get access to more weeks of unemployment benefits. The Legislators will decide on measures to implement the supposed “trailer” bill law with the unemployment provisions. The trailer bill law is an expression of the fact that COVID-19 coronavirus will likely remain for a long time, and that Californians need the extension of unemployment benefits. At the time of writing, there are no state-operated benefit extension programs given in California.

I am not qualified for the regular UI benefits. What can I do?

If you are ineligible for the regular unemployment benefits in California, you may apply for the following unemployment benefits:

• Disability Benefits

An employee who files for California unemployment must be available for work, physically able to work, willing to start work immediately, and must fulfill all other eligibility requirements. An employee or applicant who, however, becomes ineligible for unemployment benefits due to an injury or sickness can file a claim for the California Disability Insurance program. The program offers short-term benefits to a qualified applicant who suffers wage loss because they are unable to work due to pregnancy or childbirth or any non-work-related illness or injury. The payment is dependent on meeting all the basic eligibility requirements.

• California Paid Family Leave

If you are at home because you need to look after a family member who is ill, you can apply for California Paid Family Leave (PFL), but it requires medical certification. An employee does not currently qualify for PFL if they have to stay at home with their kids because the schools are closed.

• Pandemic Unemployment Assistance Benefits

The Pandemic Unemployment Assistance program is intended to be an alternative benefit for applicants who are not qualified to collect regular California Unemployment Insurance (UI) benefits. It covers applicants that are unemployed or partially unemployed for reasons related to COVID-19. Likewise, self-employed Californians who did not have any regular employment or did not earn sufficient earnings as an employee during the 2019 calendar year are eligible to apply for the Pandemic Unemployment Assistance benefits. Applicants that can work from home or on leave and being paid or receiving other paid leave stimulus are not eligible for the PUA benefits.

ELIGIBILITY REQUIREMENTS FOR UNEMPLOYMENT BENEFITS IN CALIFORNIA

To be eligible for California unemployment benefits, applicants must satisfy the three criteria according to EDD. These include minimum earning, the reason for unemployment, and maintaining eligibility.

• Minimum earnings requirements

Your past earnings are expected to meet a predetermined amount. You must have earned a minimum of $1,300 in the highest-paid quarter of the base period, or $900 in the highest-paid quarter of the base period, not less than 1.25 times their earnings in the highest-paid quarter in the entire base period.

• Reason for unemployment

You must prove that you are out of work for reasons beyond your control. You must show that:

1. You became unemployed at no fault of their own
2. You were not involved in any fraudulent, unethical, or criminal activities in their former workplace, which led to being fired

• You did not quit the job for a lack of interest

1. You are fired or your work hours were reduced for lack of work

Note that EDD would verify the reason you provided for separating from your previous employer. They will contact your previous employer to validate the reason provided and if there are discrepancies, you may not be eligible for benefits. You may file an appeal against the decision of EDD if you are not pleased with the response,

• Maintaining Eligibility

Meeting the minimum earnings and the reason for unemployment will qualify you for unemployment benefits in California. However, you are expected to certify for unemployment benefits every week. Otherwise, it will disrupt the payment of your weekly benefits. The information on the certificate will show whether or not you meet all the requirements for the week.

HOW UNEMPLOYMENT BENEFIT IS CALCULATED

California’s unemployment benefits are calculated using your earnings during a 12-month base period. The base period is divided into four consecutive quarters, and it begins about 15 months before the date you filed for a claim. The EDD has two types of base periods used to calculate employee’s earnings for an unemployment claim. They include:

• Standard Base Period – the first four of the last five calendar quarters before the date that you apply for benefits is used to determine if you can establish a claim.
• Alternate Base Period – The alternative base period consists of the last four calendar quarters before the start date of the claim. The EDD will only consider this method when you do not have enough wages in your standard base period, but you have sufficient wages in the alternative base period to establish a claim.

APPLYING FOR UNEMPLOYMENT BENEFITS IN CALIFORNIA

Employees in California can apply for unemployment benefits via online, phone, mail, or fax.

• ONLINE

The most convenient way to apply for unemployment in California is through the EDD online portal. Applicants can visit https://www.edd.ca.gov/Unemployment/UI_Online.htm to register their claims online. The registration time differs by days as shown below:

1. Monday – 4:00 AM to 10:00 PM
2. Tuesday to Friday – 2:00 AM to 10:00 PM

• Saturday – 2:00 AM to 8:00 PM

1. Sunday – 5:00 AM to 8:30 PM

Applicants can also certify for continued benefits, open new claims, update their phone number & address as well as view, request, and print their copy of form 1099G.

• PHONE

This is another way to file for unemployment benefits in California. Applicants can call EDD designated numbers from Monday to Friday. The time is 8:00 AM to 12noon. Applicants with hearing disabilities can reach the TTY line on 1-800-815-9387.

• FAX OR MAIL

Applicants may also choose to apply for unemployment benefits in California through mail or by fax. The first step is to download the UI Application form from the EDD website and complete the forms. You can either mail it or fax it to the EDD using the provided address on the forms.

Once you have successfully filed for an unemployment claim, you will start to collect the benefit on a weekly basis. However, you would need to obey all the eligibility rules throughout the benefit period.

VACATION PAY AND UNEMPLOYMENT BENEFITS

Vacation pay may be subtracted from an employee’s benefits. However, it will depend on whether the employee has been given a specific date to return to work when they were laid off. If the employee has not been given a precise date to return to work, any vacation payment made to the employee will not be deducted from their weekly benefit amount when their job ends.

Any vacation pay made to an employee that has been given a specific date to return will be deducted from their unemployment benefits for their period of a temporary layoff. According to the California Employment Development Department (EDD), vacation pay will be allocated to the number of days an employee requested vacation or to the number of days their employer required the employee to use as vacation during the temporary layoff.

OVERPAYMENTS OF UNEMPLOYMENT BENEFITS

It is possible that an applicant collects excessive benefit amounts that they were illegible to receive. This is called an overpayment. In this case, the applicant will receive a “Notice of Overpayment” through the mail from the EDD. The notice generally contains information on the nature of the overpayment transferred to the applicant, the excess amount the applicant will have to pay back, and penalties (if any) levied against the applicant. It will also contain information about the applicant’s right to appeal the imposition of the overpayment as well as the appeal procedure. California’s employment development department categorizes overpayment into Fraud and Non-Fraud.

• Non-Fraud Overpayment

This is when applicants receive benefits they were not entitled to, through no fault of their own. The applicant will receive a notice from EDD stating that they have received an overpayment and that they will need to pay back the excessive amount. In this case, there will not be any interest or penalties levied against the applicant.

• Fraud overpayment

This occurs when an applicant intentionally deceives the EDD into paying more unemployment benefits than they qualify for. If an applicant holds back some important information, lie about the wages earned during the base period, or provide fake or false documents to prove eligibility, and other related misleading tactics are regarded as a fraud in California. If a fraud overpayment is confirmed, the applicant will not only refund the excess amount but also pay an additional 30% of the amount of the overpayment as fine. If the applicant fails to pay back the excess amount and the specific penalty, the EDD may deduct the money from the applicant’s future weekly benefits, a process referred to as “offset”. Depending on the decision of the EDD, the applicant may be disqualified from receiving unemployment benefits for up to 23 weeks. The EDD may also file a lawsuit against the applicant in the law court.

How Long Does It Take To Get Unemployment Benefits In California?

It usually takes two to three weeks for EDD to process an unemployment claim and send payment to most entitled applicants. When the first benefit payment is available, the applicant will be mailed an EDD Debit Card. Once the card is activated, you can begin to use, track, and transfer your benefit payments.

How much of my earnings will I get with unemployment?

The amount of benefits an employee may receive per week is their weekly benefit rate (WBR). The amount will be at least 60 to 70 percent of the average weekly wages during your base period.

When will I be credited for benefit?

If you submit certifications by phone or online and you are eligible, your unemployment benefit will be posted to your EDD Debit Card in 24 hours. For fast claim processing, ensure you submit certifications online.

Are California’s unemployment benefits tax-free?

California’s unemployment benefits are not tax-free. Any fund you get from the State or the federal government is included in your gross earnings and taxed at your regular income rate. Moreover, applicants do not have to pay Medicare taxes and Social Security on your benefits, but you must report them on your tax return as income.

Final Thought

Receiving unemployment benefits may not be a comfortable way of living. While California’s EDD has said they will begin to automatically file extensions for those with exhausted claims (provided they first started receiving benefits on or after June 2, 2019), some applicants may have to wait until even July, before their payments start to arrive.

For more details on California’s unemployment benefits or you want to make inquires about your eligibility and specific facts, experienced employment attorneys at United Employees Law Group are always available to help. Get in touch through the contact form below.

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