CALIFORNIA UNEMPLOYMENT ELIGIBILITY

California is already experiencing a surge in the number of unemployment claims, as employees are laid off, furloughed, or have their work hours reduced. As of May 7, 2020, more than four million Californians have filed for unemployment from mid-March when the COVID-19 global lockdown started, and the government claimed to have paid out over ten billion dollars.

As the number of applicants continues to increase, some employees may receive unemployment funds in the State, but not all are qualified for the employment benefits. This article provides general information and a better understanding of the various requirements that must be met to qualify for unemployment benefits in California.

The California Employment Development Department (EDD) process unemployment claims and determines employee eligibility. They have set eligibility requirements for the benefits. To qualify, the EDD generally requires that the applicant must be:

• Out of work through no fault of their own (subject to California law)
• Ready and physically available for work
• Totally or partially unemployed
• Actively looking for job opportunities; and
• must have previously earned more than a predetermined amount within a specific period

The applicant must also continually meet the eligibility requirements, that is, prove the conditions above on a weekly basis. With that said, let us examine some of the conditions mentioned above.

 

1. PREVIOUS EARNINGS

The Employment Development Department will look at the employee’s recent earnings during a predetermined “base period” – usually one-year before filing for unemployment. In California, the base period is generally a specific 12-month term before an employee files for unemployment. It is used to check if the employee has earned sufficient wages to establish an unemployment claim.

For instance, if an employee files for unemployment in September of 2019, the base period would be from May 1, 2018, through April 31, 2019. The EDD will also consider the employee’s recent work history when the employee files for unemployment.

During the base period, eligible employees must have earned a minimum of:

• $1,300 in the highest-paid quarter of the base period
• $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

 

2. TOTAL OR PARTIALLY UNEMPLOYED

Generally, California employees who are temporarily out of work due to a company’s downsized for economic reasons or had their hours significantly reduced(or entirely cut), at no fault of their own may be eligible to collect unemployment benefits under California’s partial benefit program. The program is for workers that their employers want to keep regardless of the existing lack of work. The employer and the employee must both complete a “Notice of Reduced Earnings” form. By applying for unemployment through this program, an employee does not have to prove that they are available to work and actively seeking for other work. Note that the employee may become ineligible if they earn more than a set amount from their employer.

For employees that are fired and unemployed, the EDD will need to examine the reasons behind it and then make a personalized decision. If an employee is fired for lacking the skills needed to effectively perform their job duties or for not being a good fit, they may still qualify for unemployment benefits. On the other hand, an employee that is fired due to employee misconduct or breach of contract will not qualify for unemployment benefits. Misdemeanors can generally make an employee be ineligible for California unemployment benefits if:

• The employee failed to perform a material duty in a way that showed an intentional violation of the duty or a careless disregard for the penalty of their breach of the duty.
• The employee substantially breached work duty. In other words, they did not perform their job duty. In this case, one-time misbehavior may not be enough to disqualify an employee from collecting unemployment benefits.
• The employee’s breach of duty is likely to harm the business interest of the employer

Note: Incompetence or inability to do their job will not disqualify an employee from receiving benefits in California.

 

3. READY AND PHYSICALLY AVAILABLE FOR WORK

California employees that apply for unemployment claim must be able to work, ready to accept a job, and actively seeking work. The applicant must confirm that they meet these conditions while submitting their claim for unemployment benefits. They must keep records of those employers they have contacted, the dates they contacted the potential employers, and the outcome. The Employment Development Department usually asks applicants to provide details about the employers contacted and the outcome.

 

ELIGIBILITY REQUIREMENTS RELATED TO CORONAVIRUS

In view of the COVID-19 coronavirus pandemic, California’s unemployment eligibility requirements have been relaxed significantly. Consequently, applicants will not have to meet all the necessary conditions to receive benefits. Employees are eligible for unemployment if they are partially or totally out of work due to COVID-19 outbreak, or are isolated and unavailable to work subject to a request from their employer or physician.

Employees are not required to present work-search proof if they are out of work due to the COVID-19 epidemic. At the same time, they will not be placed into work through EDD’s placement program. For employees that are not planning to return to the same employer, they are only required to show two work search activities per week. Furthermore, the one–week waiting period for filing a claim has been waived due to the COVID-19 coronavirus pandemic.

According to EDD, applicants are encouraged to file their unemployment application the first week they have reduced work hours or lose their job. The certification starts on the Sunday following when the request was submitted and covers the two previous weeks.

 

PART-TIME WORKERS ELIGIBILITY FOR UNEMPLOYMENT CLAIM IN CALIFORNIA

California unemployment claims are not only available to employees that are completely out of work. Employees that are working part-time may still qualify for unemployment benefits, depending on their earnings and some other circumstances. California has several programs that provide partial unemployment benefits to part-time workers – a portion of what they would receive if they were fully unemployed.

 

JOB QUITTING AND ELIGIBILITY FOR UNEMPLOYMENT BENEFITS

California employees that quit their jobs voluntarily are generally not eligible for unemployment claims. However, there are good reasons for quitting that will not disqualify an employee from receiving benefits. For instance, employees that quit their job due to unsafe working conditions, illegal discrimination, fraud by your employer, harassment may collect unemployment benefits. In this case, the employee must prove good cause for quitting, and that any other person who really wanted the job would have quit under the same circumstances. To be eligible for benefits, the employee must have discussed the issue with their employer and allowed a reasonable amount of time for the employer to fix the problem before quitting.

Some employees may also quit their job for genuine reasons that have nothing to do with their employers. These include family problems like domestic violence, childcare, severe health issues, or the need to look after a family member that is critically sick. California employees that quit their job for reasons such as these will likely be eligible for unemployment benefits.

The employee Development Department may not find a good cause if the worker’s childcare choices are feasible but just undesirable. Similarly, an employee will generally not be eligible for unemployment if they quit their job due to the high cost of childcare. Under this rule, the cost of childcare cannot be considered when deciding whether the claimant had good cause for quitting their job.  However, some situations may arise where the cost of available childcare is unreasonable. In this case, the employee may be eligible.

 

APPLYING FOR UNEMPLOYMENT IN CALIFORNIA

Employees can file a certification with EDD by email, phone, fax, or online. To apply for unemployment, applicants should visit www.edd.ca.gov. The following details will, however, be needed when applying for unemployment:

• Information on their last employer, including company name, address, phone number, supervisor name, employment date
• Type of work performed and why they’re no longer working and the last date worked;
• Gross wages and how they were paid either hourly, weekly or monthly
• Citizenship type or information from employment approval document
• DD 214 Member 4 copy for ex-military members and Standard Form 8 for federal employees

Through the web link provided above, applicants can also check the status of their unemployment claim. They can also learn about the current eligibility conditions, the benefit amounts, and more. After successful certification, the status should change to “Pending”. In 24 hours (it may take a couple of days in some cases), the status will change to “Paid” meaning money has been paid to the employee’s account and it may also take a few more days to reflect on your EDD Debit Card. If it has been over three days and the certification status is still showing pending, the employee will need to contact the EDD.

 

WEEKLY BENEFITS CERTIFICATION ELIGIBILITY

An employee must meet eligibility conditions each week they certify for unemployment. The certification involves answering a few questions to verify if they are still eligible for unemployment benefits. No applicants will be paid until they certify – and in a timely manner. It is recommended that employees certify online for quick processing. They can certify via the UI portal on the EDD website. If the certification shows that the employee is not qualified, it is the decision of EDD to deny or reduce their unemployment benefits. If the employee disagrees with the final decision of EDD, they may file an appeal.

 

INDEPENDENT CONTRACTORS

Independent contractors may be potentially eligible for unemployment benefits if their previous employer contributed on their behalf for at least 5 months, or the independent contractor chose to contribute to California’s Unemployment Insurance coverage. An employee that believes they have been wrongfully classified as an independent contractor should provide the business they contract with as their last employer when applying for benefits. They should include the employer information, where they have worked, the type of work done, the gross earnings as well as how they were paid. The applicant can also list themselves as their last employer.

 

How Long Should An Employee Be Employed To Be Eligible For Unemployment?

Employees need not have worked for a particular period to qualify for unemployment claims. To ensure employees have done enough recent work to qualify for unemployment, the California State considers the time worked, their earnings, or both during a one year base period. Generally, this implies that the employee must have started earning wages for at least three months prior to filing for unemployment.

 

Can Employees That Were Paid In Cash Be Eligible To Receive Unemployment Benefits?

An employee that was paid in cash for the past few years may experience difficulties when applying for unemployment if their employers did not report their earnings to EDD. The employee may be eligible for unemployment, but will likely need to go through a wage audit, and may need to present an Affidavit of Wages.

 

Am I eligible for unemployment if I decide to stay home for health reasons?

Employees that willingly stayed home, and become unemployed due to worries about their underlying health conditions or COVID-19 may still qualify for benefits. While filing a claim, the employee should explain why they are unable to work. An EDD representative may likely reach out to the employee for a phone interview to evaluate their eligibility.

 

My child’s school is closed and I had to stay home to care for them. Will I be eligible for unemployment benefits?

In view of the recent changes to benefits conditions, an employee who has to stay home to care for their children because the child’s school is closed can still be eligible for unemployment benefits. The employee should apply for a claim and explain why they could not work. An EDD representative may likely reach out to the employee for a phone interview to evaluate their eligibility.

 

CONTACT US

If you are not sure of your eligibility, United Employees Law Group will be glad to help you further. Schedule an appointment and an experienced employment attorney will follow up with you as soon as possible.

 

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