Can I file for EDD after business ownership change left me with zero hours?

Your eligible!!! Change of ownership doesnt effect your claim at all, EDD looks at your TOTAL earnings across the base period (like 12-18 months back i think). I went through something similiar when my retail job got bought by a bigger company and they basically pushed all the original staff out by cutting hours. Just make sure when you file you list BOTH the old and new business info since technically their different employers even tho its the same actual job. BTW what your describing is 100% constructive dismissal and those owners are trash for ignoring you.

Let me clarify the technical details here. When EDD evaluates your eligibility, they look at your base period earnings, which is the first 4 of the last 5 completed calendar quarters before you file your claim. The ownership change doesn't impact this calculation at all. For example, if you file in March 2025, your base period would be Q4 2023 through Q3 2024 (October 2023 - September 2024). You need to have earned at least $1,300 in your highest quarter during the base period, and your total base period earnings need to be 1.25 times your highest quarter earnings. Make sure you list both employers (pre and post ownership change) with their correct legal names and EIN numbers when you file. If you don't know this information, you can use your W-2 forms. What you're experiencing is indeed constructive dismissal, which qualifies you for unemployment. Document all your attempts to contact them about hours - screenshots of texts, call logs, etc. This will help if they contest your claim.

To answer your follow-up question - yes, if your cousin hasn't worked long enough to meet the base period earnings requirements, they might not qualify for regular UI. However, they should still apply because there are sometimes alternative base period calculations for recent entrants to the workforce. The EDD system will determine eligibility after application.

the same EXACT thing happened to me at a coffee shop last year!! the new owners are probably trying to bring in their own people without formally firing anyone to avoid paying unemployment. document EVERYTHING - take screenshots of your texts being ignored, write down dates/times you tried to contact them. when you file make sure you say you were laid off due to "reduction in hours" not that you quit!!! super important!!

they tried to fight it saying i "voluntarily reduced my availability" which was complete BS! but i had all my evidence showing i was available and they just stopped scheduling me. EDD sided with me after the phone interview. just be prepared to wait forever to actually talk to someone at EDD tho... took me like 3 weeks of calling

I went through this exact situation with a restaurant ownership change in 2024. The key is understanding that EDD tracks your earnings by your Social Security Number across ALL employers, so the ownership change doesn't matter for qualifying. Your work history follows YOU, not the business. What matters is that you earned enough during your base period (which is what the others explained above). Since you worked there for 2 years, you almost certainly meet the earnings requirement. When you file, you'll need to explain that your hours were reduced to zero, which is effectively a layoff. Be prepared for an eligibility interview where you'll need to explain the situation. Also, if you're struggling to get through to EDD on the phone (which is likely), I discovered a service called Claimyr (claimyr.com) that actually got me connected to a real EDD agent without the endless busy signals. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km - totally worth it because I was able to explain my complicated situation directly to someone instead of just guessing through the online system.

I understand the skepticism, but it actually does work. They use a system that keeps dialing for you and jumps you into the queue when there's an opening. Was honestly skeptical myself until I tried it after spending 3 days calling non-stop on my own. But everyone's free to do what works for them - persistent manual calling works too if you have the time.

ppl always overthink this stuff lol... just FILE already!! worst they can say is no right? and like everyone said the ownership change doesnt matter at all for your eligibility, its all about how much u earned in the base period. good luck dealing with EDD tho their a nightmare lol

Thank you all for the advice! I've started gathering all my documentation (pay stubs, W-2s, text screenshots) and will file my claim tomorrow. Will update on how it goes!

my friend had almost the same thing happen at a smoothie place!! but she waitd too long to file and missed out on like 6 weeks of benefits they told her she could have got if she filed right away... dont wait!! file asap becuz they dont backdate claims anymore unless u have a really good reason

Just wanted to add - make sure you keep track of your job search efforts while your claim is pending! EDD requires you to apply for jobs and keep records even during the application process. Also, if you haven't already, try reaching out to your old managers/supervisors from before the ownership change - they might be willing to provide a reference or even a statement about how you were a good employee with consistent hours before the new owners took over. This could help if there's any dispute about your work history. The whole situation sucks but you definitely have a solid case for unemployment benefits!