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Dmitri Volkov

Can I claim EDD benefits if I quit before company relocates out of state?

My company just announced they're relocating our entire department to Arizona in Feb/March 2025. They've offered a measly relocation package that barely covers 20% of actual moving costs and wouldn't help with the higher housing market there. I have kids in school and elderly parents nearby that I help care for - moving is literally impossible for my situation. The workplace has gotten increasingly hostile as they know many of us can't relocate. No severance packages offered, and they're already treating those who can't move like we're disposable. I need to start job hunting ASAP, but working 50+ hours weekly for a company that's dumping me makes this nearly impossible. Does anyone know if I can quit NOW and still qualify for unemployment benefits since they're essentially forcing me out? Or do I have to wait until the actual relocation date? I'm worried good jobs in my field will be gone if I wait until March to start searching. Anyone dealt with this type of situation before?

Yes, you should qualify for unemployment because this counts as a "good cause" quit. When your employer relocates beyond a reasonable commuting distance, EDD considers this a compelling reason to leave. You don't technically have to wait until they move - you can quit now and explain in your application that your job is being eliminated through no fault of your own due to relocation. Make sure to document EVERYTHING. Get the relocation announcement in writing, any emails about the inadequate relocation package, etc. When you file, be very clear that continuing employment would require relocating out of state which presents undue hardship (family obligations, cost, etc). EDD will likely contact your employer to verify.

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Thanks so much! This is a huge relief. I'll start gathering documentation tonight. Do you think an email where they announced the move and the relocation package details would be enough? Or should I also get something that specifically shows my position is being eliminated if I don't move?

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DONT QUIT WITHOUT TALKING TO EDD FIRST!!!! My brother did this exact thing when his company moved to Texas and they DENIED his claim!!!! Said he "voluntarily quit" and had to fight it for MONTHS!!!! The system is RIGGED against workers!!!!

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This isn't entirely accurate. While you should be careful about how you quit, relocation beyond a reasonable commuting distance is specifically listed as good cause in the EDD Benefit Determination Guide. Section 1256-5 covers this exact situation. The key is documenting that relocation was mandatory to keep your job and that moving would create undue hardship. Your brother might have had issues with documentation or how he explained his situation on the application.

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i was in this same boat in 2022!! my job moved 2 oregon & i couldnt go. i did unemployment no problem but wait till they give OFFICIAL notice of the move date. they made me wait till 2 weeks before the actual move date to quit, still got benefits tho

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That's really helpful to know! Did EDD make you wait until the move date, or was that your company's policy? I'm worried about missing out on job opportunities if I wait until the last minute to start searching.

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Here's what you need to know about quitting before a company relocation: 1. Under California unemployment insurance code, when an employer relocates beyond a reasonable commuting distance, this creates "good cause" for voluntary resignation. 2. Document everything! Get written confirmation of: - The relocation announcement with dates - The inadequate relocation package offered - Your attempt to negotiate a workable solution - Any changes in workplace conditions 3. When you quit, submit a formal resignation letter explicitly stating you're leaving due to the company relocation creating undue hardship. 4. On your EDD application, be very specific that your quit was due to employer relocation. Don't just mark "voluntary quit" without explanation. 5. You technically can quit now, but waiting until closer to the move date strengthens your case. Consider requesting reduced hours to job search if possible.

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wow thats super detailed. do u work for EDD or something?? this is exactly what i needed to know too since my company is doing the same thing next year lol

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I tried to call EDD to ask a similar question about my situation and it was IMPOSSIBLE to get through. "We're experiencing high call volume" for weeks! So frustrating when you need actual answers to complicated situations like this.

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I had the same problem trying to reach EDD about my relocation situation. I finally used Claimyr (claimyr.com) and got through to an EDD rep in about 25 minutes. They have this video that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The EDD agent confirmed that I qualified for benefits when my employer relocated. They specifically looked up the regulation and told me I needed to keep documentation of the move announcement and that I had tried to find solutions that didn't involve relocating. Worth getting the official word directly from EDD on something this important.

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just make sure u dont say u quit to look 4 other jobs!! my friend did that & got denied even tho the company was moving. u HAVE to say its bcuz of the relocation!!

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Good point! I'll definitely be careful about how I phrase everything on the application. I'll focus 100% on the relocation issue rather than mentioning job hunting.

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wait but won't u get more money if u wait till they lay u off officially? that seems better than quitting early

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Not necessarily. If the employer formally classifies it as a layoff, there wouldn't be much difference in UI benefits. UI benefit amounts are based on your earnings during the base period, not whether you quit with good cause or were laid off. The only potential difference would be if the employer offers severance at the actual relocation date (which OP mentioned isn't happening). The bigger risk of waiting is missing out on current job opportunities while the market is favorable for their skills.

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Update: I spoke with HR today and they confirmed in writing that my position won't exist in California after March 15th. They also stated they understand if employees can't relocate and would "process the separation as a layoff due to business necessity" if I stay until at least February 1st. Does this change anything about my unemployment eligibility? Would it be better to wait until Feb 1st and get the official layoff rather than quitting now?

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This is GREAT news! This is even better than quitting with good cause. If they process it as a layoff, you'll have zero issues with your unemployment claim. Absolutely get this in writing. If you can wait until February 1st without jeopardizing your job search, that would be ideal. This classification means: 1. You won't have to prove good cause for quitting 2. There's virtually no chance of your claim being initially denied 3. You may qualify for additional services through EDD's layoff assistance programs However, if you find a great job opportunity before February, don't pass it up just to wait for the layoff classification. The job market should be your priority.

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Something similar happened at my last company. If they officially process it as a layoff, make sure to ask for a formal layoff letter stating the reason is due to business relocation. This will make your EDD application seamless. I'd personally wait until February 1st since it's only 6-7 weeks away, but use this time to update your resume and start networking. My employer gave us 3 months notice and I used the first month to prep while still getting paid, then got laid off officially, which gave me both unemployment and severance while job hunting.

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That's really smart. I'll definitely ask for that official layoff letter when the time comes. I'm already updating my LinkedIn and resume during evenings and weekends. Fingers crossed I can line something up for February/March timing!

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congrats!! that layoff letter is like gold for EDD!!

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This is such a relief to read your update! Getting that official layoff classification is definitely the way to go if you can wait until February 1st. I went through something similar when my company moved operations to Nevada in 2020. A few things that helped me during that transition period: 1. Use your remaining time there wisely - network internally, ask for LinkedIn recommendations from colleagues before they scatter, and get copies of any work samples you might need for interviews. 2. Consider reaching out to recruiters now so you're in their pipeline for January/February openings. Many companies have hiring freezes in December but ramp up in Q1. 3. If your company offers any career transition services or job placement assistance, take advantage of it! Mine provided resume writing help and interview coaching. 4. Document everything about your role and achievements while it's fresh - this will help with interview prep later. You're in a much better position now knowing they'll classify it as a layoff. The job market in California has been pretty strong in most sectors, so hopefully you'll find something great before you even need to file for unemployment!

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