Unemployment Archives - UELG https://www.california-labor-law-attorney.com/category/unemployment/ California Labor Law Attorney Wed, 21 Feb 2024 08:57:58 +0000 en-US hourly 1 https://www.california-labor-law-attorney.com/wp-content/uploads/2019/05/img-logo-150x113.jpg Unemployment Archives - UELG https://www.california-labor-law-attorney.com/category/unemployment/ 32 32 CALIFORNIA UNEMPLOYMENT BENEFITS https://www.california-labor-law-attorney.com/california-unemployment-benefits/ Wed, 01 Jul 2020 11:07:19 +0000 https://www.california-labor-law-attorney.com/?p=6285 Unemployment benefit in California is an initiative jointly handled by the State and the federal government to provide financial support […]

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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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How to Fight for your Unemployment Benefits https://www.california-labor-law-attorney.com/fight-for-your-unemployment-benefits/ Thu, 27 Sep 2018 19:48:26 +0000 https://www.california-labor-law-attorney.com/?p=5610 During the process to apply for getting unemployment compensation, you be challenged by your previous company. Reasons that you may […]

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During the process to apply for getting unemployment compensation, you be challenged by your previous company. Reasons that you may not collect benefits will vary, however, there are countermeasures that you can use in defense.

The Employment Development Department (EDD) is required to listen to all counterclaims if they have information that’s evidence-driven. For whatever reason, your ex-employer may hold a grudge against you or is guilty of wrongdoing that you found-out. They may opt to burden you further by claiming your reason for quitting was due to misconduct.

Some companies will try to avoid paying for unlawful termination lawsuits and even their unemployment insurance to cut corners further. Their strategy may include targeting selected employees for harassment and bullying to drive them to quit. This, unfortunately, can happen to many seasonal and short-term workers.

Three months is the shortest period that you can claim unemployment compensation. These employers will not want to pay for their additional unemployment insurance and find sneaky ways to prevent you from collecting on that insurance benefit. If you quit your job voluntarily, this will not allow you to get benefits from the EDD. Especially if there’s no claim on your behalf, such as documented violence or harassment, that led to you suddenly quitting. Yet if you did quit and were being forced to leave there are steps you can follow to reverse the unemployment claim.

What can you do?

Being denied the ability to claim unemployment makes it difficult to cover basic living expenses. This also can prevent you from using these benefits to look for another job effectively. In the event you feel that your ex-employer is blackballing you, you’ll need to follow these tips:

• Get as many witness statements from those who are willing to tell what happened.

• Gather as much evidence or proof of your claims (mobile phone recordings, pictures, etc.)

• Bring all of these items with you to your EDD hearing

• If you do not win the final verdict, you have the right to appeal your case by a specific time

Unemployment benefit extensions

Luckily in the end, if you do win the appeal and are granted unemployment benefits, there’s added benefit extensions. An additional 20 weeks can be added to your claim if they fall into selected categories.

• If you accept work that pays lower than the amount you were being paid previously

• Accepting work tasks that differ from your skill-set with lower expected pay

• Going to all scheduled EDD re-employment service interviews

Disaster Unemployment Assistance

If your work was affected by a natural disaster, you can claim Disaster Unemployment assistance. The affected area needs to be further listed as such, by FEMA and by the US President. For this claim, you are eligible to collect up to 26 weeks from the date your disaster area was declared.

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Collecting Unemployment Benefits in California https://www.california-labor-law-attorney.com/collecting-unemployment-benefits-california-2/ Mon, 04 Jul 2016 16:41:39 +0000 https://www.californialaborlaw.info/?p=997 In California, the office that handles unemployment benefits is known as the Employment Development Department. Qualification for Unemployment in California […]

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In California, the office that handles unemployment benefits is known as the Employment Development Department.

Qualification for Unemployment in California

You should meet three qualification necessities to collect unemployment benefits in California:

1. Your past earnings must meet a minimum threshold

2. You should be unemployed through no mistake of your own, in accordance with California law.

3. You should be capable, available, and looking for work.

Unemployment Benefits

Before we talk about the benefits, it may be noted that you must register yourself for these benefits as soon as you have been laid off by a company. Many people do the mistake of not registering at the unemployment office in the hope of finding a new job soon. Although you may be confident about your abilities, it is a good idea to register yourself soon. What if it takes a while to get a job of your choice? You may not want to compromise on the work profile due to the urgency of a job requirement. To avoid such situations, it is important to seek unemployment benefits.
How To File For Your Unemployment benefits?
In filing unemployment benefits in California, you will be required to give personal and employment information like name, address, telephone number, e-mail address, name and address of previous employer, date of starting and leaving the job, and reason for resigning or being laid off from the job. After sometime of filing the claim, you will receive a letter specifying the benefits you will receive.  Unfortunately, if your claim gets rejected, you will receive a notice stating the reason of denial of unemployment benefits. Receiving a denial letter does not mean you cannot get the claim. In such a case, you should prepare for appeal to persuade the California to pay you the unemployment benefits. Here is a list of benefits that you can expect. It is important to note that you must register yourself of unemployment to be eligible for the benefits.

Temporary Compensation
Until you find a new job, you can expect temporary compensation from the California government. However, you must qualify for this kind of compensation. The value and duration of the unemployment benefit would depend on the California.

The California unemployment law has its own unemployment benefits program. There are some eligibility criteria that you must qualify to avail the benefits. The unemployment benefits are given only if you meet the qualifying criteria.


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Severance Agreements in California https://www.california-labor-law-attorney.com/severance-agreements-california/ Mon, 16 May 2016 17:30:57 +0000 https://www.paymeovertime.com/?p=999 What’s Severance Pay? Also referred as separation pay, continuation pay or termination pay, severance pay simply refers to money and […]

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What’s Severance Pay?

Also referred as separation pay, continuation pay or termination pay, severance pay simply refers to money and benefits offered by the employers to employees who are who are fired, laid off or who have resigned. Basically, California employees are usually required to sign a severance agreement each time their employers terminate them from their duty.

Severance agreements can also be referred as a General Release, Exit Agreement, Termination Agreement, Separation Agreement, or other similar terms.

Why do Employers in California Prefer Having Work Severance Agreements?

First and foremost, be informed that work severance agreements always favor the employers. An employer in most cases will often try to use extremely broad language in his/ her severance agreement in order to insulate him or herself from all future legal liability and lawsuits.

By having employees sign first their legal rights, an employer can avoid paying for any wrongful act he or she may have done to an employee.

What Should You Do as an Employee if you Receive a Severance Agreement?

Once you receive an employment severance agreement, as an employee you should never ever let your employer force or pressure you to accept it. The same as other contracts, all the terms in a severance agreement, including the amount of cash you’ll receive have to be negotiable.

You must ensure that you go through the severance agreement carefully and try to know the obligations as well as the consequences. It’s important that you ask your employer to issue you with a copy of the agreement so that you can review it from time to time.

When Should You Sign your Waiver or Severance Agreement?

It is important that employees avoid signing the waiver or severance agreements until they understand their consequences or think the terms in them are fair. Also, it’s ideal that an employer consults an employment lawyer to understand if his or her rights were violated before he/ she can accept the waiver or severance agreement.

What are the Additional Standard Provisions Presence in a Severance Pay Agreement?

*Classification:-

Refers to how the employers classify departing employees’ severance can make a huge difference in employees’ capability of obtaining the unemployment benefits.

*Taxes:-

Simply indicates that it’s possible to allocate all of severance payments to non- taxable claims.

Last, but definitely not least, for more information about severance agreements in California and how you can make use of it if you’re an employer or employee, feel free to contact us.


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Unemployment Benefits Eligibility in California https://www.california-labor-law-attorney.com/unemployment-benefits-eligibility-california/ Mon, 14 Mar 2016 17:18:32 +0000 https://www.california-labor-law-attorney.com/?p=1164 Many people who are unemployed may collect unemployment funds in California State. However, not all of them are eligible for […]

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Many people who are unemployed may collect unemployment funds in California State. However, not all of them are eligible for the employment benefits. The California’s Employment Development Department has set eligibility requirements for the benefits. To qualify, you must have attained the earnings of a set amount in a specified period and unemployed because of circumstances beyond your control. Moreover, you must be willing to work and actively seeking for a new job.

Unemployment benefits eligibility in California

To qualify for the benefits, the California Employment Development Department (EDD) will use the following criteria:

#1. Past earnings

The EDD will assess your recent earnings before filing for the employment. Your earnings will be evaluated based on a period of 1 year, which comprise of four calendar quarters before the filling of unemployment. In a base period of 1 year, you should have the earnings of not less than $1,300 in highest paid quarter. Alternatively, you must have got the earnings not less than $900 in the highest-paid quarter not less 1.25 times the earnings in the highest-paid quarter in the whole base period.

#2. Reasons for unemployment

In most cases, the people who apply for unemployment funds have been permanently or temporarily laid off by the employer. The employee who was laid off due to company’s downsizing process is eligible for the unemployment benefits. On the other hand, the Department may approve those employees who were fired because they were not competent in the job. However, the employees who were fired due to professional misconduct or breach of contract are not eligible for the unemployment benefits.

Also, an employee who quit the job because of unsafe conditions may collect the benefits. To remain eligible, you must have tried to resolve the issue with the employer and allow time for the problem to be fixed. Moreover, employees who quit the job for health or family reasons are eligible for the unemployment benefits.

#3. Willingness to work

People who apply for the unemployment funds in California must be willing to work and actively seeking for a new job. In this case, you must show the proof that you have been searching for a job. The EDD will ask you to give the information about the companies you have contacted recently as well as their feedback.

Conclusion

If you are unemployed and live in California, you should consider applying for the unemployment benefits. The California’s Employment Development Department has set the eligibility requirements for people who wish to collect the benefits.


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Understanding the Consolidated Omnibus Budget Reconciliation Act – Simplified https://www.california-labor-law-attorney.com/understanding-consolidated-omnibus-budget-reconciliation-act-simplified/ Mon, 27 Jul 2015 17:30:25 +0000 https://www.sanfranciscoemploymentattorneys.net/?p=1197 COBRA – known as Consolidated Omnibus Budget Reconciliation Act in full – is an act of law that helps those […]

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COBRA – known as Consolidated Omnibus Budget Reconciliation Act in full – is an act of law that helps those who have already left employment to continue receiving health insurance coverage. The law is generally crucial to those who may want to safeguard their financial and health security even after leaving a job or losing an employed spouse. When one opts to continue with COBRA they don’t have to pick a new plan or transfer medical records. However, there are few basics and requirements in order for one to avail these benefits.

Eligibility Criteria

To qualify for COBRA, one must satisfy several requirements. First, one’s current health plan must be subject to COBRA law. It’s important to note that not all health cover plans are eligible. Another requirement to take note of is that one must be considered a qualified beneficiary in their existing health plan in order to qualify. A qualified beneficiary can be an employee of the sponsoring health plan, spouse, dependent or agent/director (that participated in a health plan) or a retired employee who lost their job as a result of an employer going bankrupt. Lastly, one must have a “qualifying event”. A qualifying event can be: when one is laid off, quits, gets fired, gets terminated or still employed but working hours are reduced causing a loss of health insurance benefits.

How Long It Lasts

An individual may continue enjoying COBRA health-coverage for up-to 18 months. Children or spouses dependent on the employee who become eligible through other reasons other than by employee’s qualifying event can choose to continue the coverage for up-to 36 months – that is if the employee passes on in the course of the 18 months period. In the event the person under the coverage is disabled, COBRA coverage can be lengthened to 36-months.

How It Works

The firm that operates your employer’s health plan is by law supposed to send you several notices concerning your right to receive COBRA cover benefits. Once a qualified event occurs, one is required to enlighten the administrator of the plan. After receiving this notification, the administrator is expected to send-out an election notice to all beneficiaries thereby allowing them 60 days to respond on whether they wish to continue their cover through COBRA or not.

Paying For COBRA  

The employee or any of the beneficiaries are required to pay the entire premium to sustain full benefits of the cover. However, from September 2008 the Congress changed (temporarily) this rule to allow one to pay 65% premium in order to enjoy partial subsidy.

Getting Legal Assistance

Because of COBRA’s extensive paper-work and raft of requirements, it is important to seek assistance from professionals. Sometimes, a simple glitch can interfere with the benefits one is entitled to. In case of doubt, one should consult with a professional employment lawyer for further assistance.


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Unemployment Benefits: Valuable Tips to Get Your Benefits https://www.california-labor-law-attorney.com/unemployment-valuable-tips/ Mon, 21 Apr 2014 08:00:19 +0000 http://sanfranciscoemploymentattorneys.net/blog/?p=123 Most common concerns of Unemployment Question: How does an employee qualify for unemployment insurance? Answer: The main criteria is you […]

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Most common concerns of Unemployment

Question: How does an employee qualify for unemployment insurance?

Answer: The main criteria is you have to be unemployed. You are not allowed to claim unemployment insurance for the same period of time you are working. This is illegal and can land you in a lot of trouble.

Additionally, you have to have been laid off or fired (not for willful misconduct). If you simply quit, in most instances you will not qualify for unemployment insurance. You should understand that even if you do initially qualify for unemployment benefits, your employer is able to appeal such ruling and that ruling could be reversed. Some employers do this for good reason and others because they are vindictive.

Question: Can I file my claim online or do I need to go to the unemployment office of EDD?

Answer: Conveniently, you may now file for your unemployment benefits online. No more embarrassing visits to the unemployment office.

Question: Can I be disqualified for unemployment benefits if my employer fires me for being late to work or failing to meet my performance goals?

Answer: To be disqualified for benefits your conduct must rise to the level of willful misconduct as interpreted by EDD or ultimately a judge. One example of this might be carrying a weapon to work; another might be driving a company vehicle while intoxicated.

It is not uncommon for an employer to attempt to challenge unemployment benefits if an employee has another labor case pending against the employer. The reason for this is that they will have a chance to question and gather evidence at this hearing that may enable them to have an advantage in the other labor matter. For this reason, it is wise to have a California labor lawyer represent you in the unemployment hearing if you have another labor case pending against the employer in order to keep the questioning on point with the unemployment issues only.

If you have questions related to unemployment insurance and cannot resolve them through communications with the EDD, it is important that you speak to a California labor lawyer.

This is especially necessary if you believe that you have other labor claims aside from unemployment insurance, as a California labor law attorney can advise you how to protect your interests prior to the hearing with EDD.


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California Employees Roll the Dice … Pay Cuts vs. Layoffs https://www.california-labor-law-attorney.com/paycuts-layoffs/ Mon, 06 Jan 2014 07:43:16 +0000 http://sanfranciscoemploymentattorneys.net/blog/?p=48 Given the dismal state of the economy, many California workers are walking around with the possibility of being laid off […]

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Given the dismal state of the economy, many California workers are walking around with the possibility of being laid off looming over their heads. Even if they are not laid off, they may see their work schedules and salaries reduced. Many companies are using temporary schedule and salary reductions to cut costs until business conditions improve. The key for affected employees is to know the guidelines for such reductions.

First and foremost is the question of whether affected employees have exempt or non-exempt status. Under California law, all employees are considered to be non-exempt, meaning that they are entitled to overtime pay. The only exception is for those employees that meet all the requirements of an applicable exemption, most commonly the executive, administrative, or professional exemptions. To qualify for these exemptions an employee must pass the salary test and duties test. The salary test requires an employee to earn a monthly salary that is no less than two times the minimum wage for full-time employment. The duties test requires an employee to be primarily engaged in managerial responsibilities.

With respect to non-exempt employees, it has long been established that an employer may temporarily reduce their workers’ schedules and wages. The issue is a bit more complicated for exempt employees. According to the California Department of Labor Standards Enforcement (DLSE), theLabor Code and Industrial Welfare Commission wage order provisions nor federal law prohibits an employer from reducing the work schedules and salaries of exempt employees. Therefore, absent an employment contract or other agreement that states otherwise, an employer can reduce an exempt employee’s salary as long as they continue to earn more than twice the minimum wage and engage in exempt job duties.

One restriction is that the salary reduction cannot be linked to any corresponding change in days and hours worked. For example, an employer could not reduce an employee’s salary by 15% in exchange for giving them Fridays off. According to the California Department of Labor Standards Enforcement (DLSE), this type of salary reduction structure would violate the salary test and destroy the employee’s exempt status and non-exempt labor requirements such as meal and rest breaks would apply. The rationale is that exempt employees are paid for their work product regardless of the amount of time they take to complete their duties. Tying work hours to earnings is not in accord with being a salaried employee. 

Another consideration is that the salary reduction should also apply to all exempt employees or at least everyone with the same job duties. Applying a reduction to only certain exempt employees could violate anti-discrimination laws.

If your employer is attempting to reduce your work hours or salary, contact an experienced California labor law attorney. An attorney can advise you of your rights and evaluate your specific employment situation.


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Don’t Wait for the AX to FALL: Being Prepared Can Pay Off. https://www.california-labor-law-attorney.com/dont-wait-ax-fall-prepared-can-pay-off/ Mon, 12 Mar 2012 08:00:39 +0000 https://www.california-labor-law-attorney.com/?p=702 Steps Employees Should Take When Expecting a Layoff Washington may be selling the idea that we are in a new […]

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Steps Employees Should Take When Expecting a Layoff

Washington may be selling the idea that we are in a new economy, but there are several companies still trying to recover from the bad economic condition of the country. As a result, the unemployment scenario in California has not subsided even a bit. In fact, the rate of unemployment in California presently is 12%, and the chances of hiring are also considerably low, as around 63% of the small businesses have closed their hiring process for some time to come.

If you are an employee with one of these companies and are expecting to get laid off, you must consider doing the following things:
#1: Secure all letters of reference, performance evaluations and letters of commendation that have a mention of the landmark projects that you have done for the company. It’s also great to have a count of expense reductions that you may have got for your company and the goals that you may have achieved in terms of revenue generated. Have your back-up data ready!

#2: Keeping this data handy can be of great help to you. First, because you will be reminded of your achievements and you will realize your true value. Second, because asking your manager to provide this information will also remind them of your contribution to the team and company. Lastly, you can furnish this information to the interview board for lay-off and can actually avoid that situation from arising. If you come to know that the company is laying off people and your name is a part of that list, try to contact management and talk to them about any negotiations that may be possible.

#3: Your company may choose to give you severance pay, in which case the company shall ask you to sign a release. If you sign these papers, you will not be able to make several kinds of labor law claims on the company. Before signing any release papers, you must first show it to a knowledgeable California labor law attorney. Moreover, all of these release papers say that you, as one of the parties, have the right to get the papers reviewed by an attorney.

See even more ways to protect yourself from tricks employers use to get you to quit HERE.

The labor laws in California are rather complex, and before you sign the release papers, it is important for you to understand all your rights. The attorneys of United Employees Law Group can help and you don’t pay unless we win your case. It is also important for you to realize that in getting you to sign the release papers, your employer is not doing you a favor. In fact, you are doing a favor to your employer by signing those papers as you are the one who is at the risk of losing a good amount of money.


Photo Credit: Shutterstock/ GaudiLab

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Fired For WHAT? Who Can Help If I Was Wrongfully Terminated? https://www.california-labor-law-attorney.com/fired-wrongfully-terminated/ Mon, 30 May 2011 08:00:55 +0000 https://www.californialaborlaw.info/?p=550 Have You Been Dismissed In an Unjust Manner? What Should Be Your Next Move? People dread the day when they […]

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Have You Been Dismissed In an Unjust Manner? What Should Be Your Next Move?
People dread the day when they will be told that their services are not required anymore. This may really annoy you to no end and at times this move may not be lawful at all. The adopted employment doctrine of California states that both the employer and the employees have the right to terminate the employment bond unless they violate the federal or the state laws. This indicates that the termination is not considered to be ‘just’ if these laws have been violated. Here we have compiled a list of illegal causes of termination:

Not agreeing to break any law
Speaking against discrimination or issues related to worker’s compensation or even sexual harassment
Not following the spoken and written employment agreement
Not following the labor laws or collective agreements
Taking leave which you are entitled to under the Family and Medical Leave Act

Employees who have been suddenly terminated tend to get quite upset and depressed, however there are numerous ways to safeguard your rights.

Here we share some tips which will be beneficial to you:
Go through the contract of employment to know about your rights.
Never retaliate against the employer.
Find out the real reason which has led to termination.
Find out about who took the stand and terminated you.
Ask for a copy of your personnel file.
Give back all the company properties which were in your possession. You should also adhere to the post employment procedure which is stated in the employee manual.

If you feel that your termination is illegal, you should get in touch with a California labor law attorney. After they have ascertained that your claim is justified, you may also be reinstated or you can claim for compensation and damages. You can seek the assistance of a competent labor law attorney who will help you in the below mentioned ways:
Getting the employee reinstated.
Trying to press for pay back.
Compensation for emotional pressure.
Get penalties for the damage to prevent the employers from indulging in any illegal activities in the future.
They may ask for the employer’s policy to be modified.
The employer may not always have complete control. You too can gain some amount of control.
Labor Laws are not simple, and if you require any assistance to handle your queries related to your employment then you can get in touch with a California Labor Law attorney. The attorney will have a proper understanding of your requirements and what is the line of action you are supposed to follow.
Please feel free to CONTACT US with any questions about this blog or your exact situation.


Photo Credit: Shutterstock/Stock-Asso

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