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Amara Okafor

Can I file for EDD benefits while still working at a job that's not paying? Employer hasn't paid since March

My situation is getting desperate and I don't know what to do. I work for a small manufacturing company (18 employees) and our boss hasn't paid any of us since March 15th. That's almost 7 weeks without a paycheck! He keeps promising the money is coming 'next week' and has some story about a big client payment being delayed. Meanwhile I'm still showing up every day, working my normal 40 hours, but can't pay my rent or car payment. My coworkers and I are afraid to quit because then we'd definitely have no income, but this can't continue. Can I file for unemployment while technically still employed? Has anyone dealt with this before? I don't know how to classify this situation - it's not exactly a layoff or reduction in hours, but I'm effectively not getting paid for my work.

yes you can file! this is called 'constructive discharge' where if your employer isnt paying you or doin something else really bad, its basically same as firing you. you dont even have to quit first.

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Really? So I can keep working while I file? I'm worried my boss will be angry if he finds out and then actually fire me when the money does come through.

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This is a common situation, unfortunately. You should file for UI benefits immediately. You're experiencing what's considered a 'constructive discharge' or sometimes called 'de facto discharge' - when an employer creates intolerable working conditions (not paying wages is definitely intolerable). The EDD actually has a specific category for this. When you file, you'll select that you're still technically employed but not receiving wages. During your eligibility interview (which you'll likely be scheduled for), explain the situation exactly as you have here. Bring any documentation showing when you were last paid. Keep in mind that if your employer does eventually pay those back wages, you'll need to report that to EDD as it might affect your benefits for those weeks.

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wait wait wait... does this mean the boss can just claim they'll pay 'someday' and then fight the unemployment claim? My sister went through something similar and her employer tried to say she voluntarily reduced her hours! It was such a mess.

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I HAD THE EXACT SAME THING HAPPEN LAST YEAR!! My boss kept saying the company was just having 'cash flow problems' and we'd get paid 'soon' but it dragged on for TWO MONTHS before I finally quit. HUGE MISTAKE waiting so long. I should have filed for UI immediately. Listen - file right now today! Your boss is probably going under and stalling. Don't wait like I did. By the time I filed, the company declared bankruptcy and it made my EDD claim more complicated because they couldn't even contact my employer to verify my info!!

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Oh no, that's exactly what I'm afraid of. Did you eventually get your benefits? I'm worried that if I quit I won't qualify.

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u dont need 2 quit 2 get benefits. my bro filed while still 'employed' but not gettin paid for 3 weeks. EDD approved him no problem

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This happened to me at a startup in 2022. We kept getting told the next funding round was 'just about to close' but meanwhile no paychecks for 6 weeks. I should have filed for UI right away but I waited because I believed in the company. Big mistake! By the time I filed, I was already behind on everything. Also, document EVERYTHING. Save texts/emails where your boss promises payment. You might need them if he tries to fight your UI claim.

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Good advice about documenting everything. I've started taking screenshots of all our text exchanges about payment. I'm going to file tonight.

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This is definitely a situation where you're entitled to UI benefits. When you file, make sure to specify that you're still technically employed but not being paid. You'll likely need to have an eligibility interview with EDD to explain the situation. Something else to consider - you should also file a wage claim with the California Labor Commissioner's Office. Your employer is violating labor laws by not paying you on your regular pay schedule. I had trouble reaching EDD when I was in a similar situation last year. After trying for days with no luck, I finally used Claimyr (claimyr.com) to get through to an agent. They have a service that helps you reach EDD quickly - saved me hours of frustration. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. The agent I spoke with was able to properly code my claim so it was clear I wasn't quitting, just not being paid.

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Thank you for the tip about filing a wage claim too - I hadn't thought of that. I'll check out that Claimyr service if I have trouble getting through to EDD. Did you have to explain this whole situation to the EDD rep on the phone?

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To answer your follow-up question - you don't have to quit to receive benefits in this situation. The fact that you're not being paid is enough. Make sure to accurately report your work hours each week when you certify, but indicate you received $0 in wages. Also, there's a specific question during certification asking if you refused any work - the answer is no. You're still working, just not being paid. This is an important distinction. Keep good records of all hours worked during this period. If you eventually get back pay, you'll need to report it to EDD.

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This is incredibly helpful, thank you! I'm starting my application right now and feeling much better about my options.

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@OP one more thing - be prepared for your BOSS to suddenly get very concerned about 'fixing things' when he gets the EDD notice!! My employer suddenly found some partial payment when he got notice of my UI claim. Too little too late in my case, but just be ready for suddenly improved communication when EDD contacts him!

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dont forget to certify every 2 weeks even while waiting for interview! lots of people forget and it messes up their claim

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I'm so confused about this situation. If you're still working 40 hours, how can you certify for UI? Don't you have to be unemployed or have reduced hours? Not trying to be negative, just genuinely confused about how this works...

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It's a good question! For UI purposes, not being paid for your work hours is essentially the same as having your hours reduced to zero, even if you're physically still working. The key is that you're not receiving wages. When certifying, you report that you worked X hours but received $0 in wages. This is why the eligibility interview is important - it lets you explain the unusual situation to EDD directly.

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My company eventually closed down after our 'payment delay' situation. Just a heads up that you might want to start job hunting on the side... employers who can't make payroll are usually in SERIOUS trouble.

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Just to add - make sure you're available for that eligibility phone interview when they schedule it. Missing it can delay your claim significantly. Given your situation, they'll likely schedule one within 1-2 weeks of filing. Also, be prepared to explain why you're continuing to work without pay (fear of definitely losing job, promises of back pay, etc.) as they may ask about this.

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Thanks for the heads up about the interview. I'll make sure I'm available when they call. I really appreciate everyone's help with this - it's been keeping me up at night trying to figure out what to do.

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I went through something very similar with a restaurant that stopped paying us during COVID. One thing I wish I had known earlier - you can also contact the California Labor Commissioner's Office to file a wage claim while you're dealing with EDD. They can help you recover those unpaid wages even if the company goes under. Also, keep showing up to work if you can afford to (sounds like you're already doing this) because it strengthens your case that you didn't voluntarily quit. Document every single day you work without pay - take photos of your time clock, save any work emails/texts, etc. This evidence will be crucial if your employer tries to dispute your claim. The fact that it's been 7 weeks is actually really strong evidence in your favor. No reasonable person would consider this a temporary delay at this point. Good luck with your application!

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This is really solid advice, especially about the Labor Commissioner's Office - I didn't even know that was an option! I've been taking photos of my time clock entries but hadn't thought about saving work emails too. You're right that 7 weeks is way beyond any reasonable "temporary delay." It's actually reassuring to hear from someone who went through something similar and came out okay. Did the Labor Commissioner's Office help you get your back wages even with everything being so complicated during COVID?

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I'm in a very similar situation right now - my employer hasn't paid me in 5 weeks and keeps giving me the runaround about "cash flow issues." Reading through all these responses has been incredibly helpful! I had no idea about the constructive discharge concept or that I could file while still technically employed. One question for those who have been through this - when you're certifying for benefits and reporting that you worked X hours but received $0 in wages, does EDD ever question why you're continuing to work without pay? I'm worried they might think I'm somehow voluntarily accepting this situation or that there's something suspicious about it. Also, has anyone had success with their employer actually coming through with back pay eventually? I'm torn between hoping this gets resolved and preparing for the worst case scenario where the company just folds entirely.

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I can answer your first question from experience! During my eligibility interview, the EDD rep actually seemed very understanding about why I was continuing to work without pay. I explained that I was afraid to quit because then I'd have zero income and no chance of getting the back wages if things turned around. They said this is actually pretty common and that fear of losing your job entirely is a reasonable explanation for staying. The key is being honest about your situation - explain that you're hoping the employer comes through with back pay but also protecting yourself by filing for UI. They didn't question it at all once I explained the circumstances. As for back pay, unfortunately in my case the company ended up closing about 2 months later and I never got those wages. But I heard from others in similar situations that some employers do eventually pay up, especially smaller companies that are just having temporary cash flow problems versus ones that are actually failing. 7 weeks is getting pretty concerning though - definitely protect yourself with the UI claim and wage complaint like others suggested!

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This thread has been incredibly informative! I'm actually a labor law paralegal and just wanted to add a few technical points that might help: 1. What you're experiencing is indeed "constructive discharge" - California courts have consistently ruled that failure to pay wages creates intolerable working conditions that effectively force resignation, even if you don't formally quit. 2. Under California Labor Code Section 201-203, your employer is required to pay wages on regular paydays. After 7 weeks, you're looking at significant waiting time penalties (up to 30 days of wages) that they'll owe you even if they eventually pay. 3. When filing your UI claim, make sure to select "still employed but wages reduced to zero" rather than "unemployed" - this accurately reflects your situation and will help during the eligibility review. 4. Document everything - timecards, work emails, any communication about delayed payments. Screenshot text messages before they disappear. This evidence will be crucial for both your UI claim and any potential wage claim. Your situation is more common than you might think, especially with smaller employers. The key is protecting yourself now while hoping for the best outcome. File that claim today!

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This is exactly the kind of detailed legal insight I needed to see! Thank you for breaking down the specific labor codes and clarifying the "still employed but wages reduced to zero" option - I was wondering how to categorize this accurately when filing. The point about waiting time penalties is really important too - I had no idea the employer could owe up to 30 days of additional wages on top of what they already owe. That's actually a significant amount of money in my case. I'm definitely going to make sure I have all my documentation organized before I file tonight. It's reassuring to hear from someone with legal background that this situation is more common than I thought and that there are real protections in place for workers like me.

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