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.
20 comments
CaptainAwesome
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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Amara Okafor
•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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Yuki Tanaka
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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Esmeralda Gómez
•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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Klaus Schmidt
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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Amara Okafor
•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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Aisha Patel
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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LilMama23
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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Amara Okafor
•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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Dmitri Volkov
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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Amara Okafor
•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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Yuki Tanaka
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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Amara Okafor
•This is incredibly helpful, thank you! I'm starting my application right now and feeling much better about my options.
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Klaus Schmidt
@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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CaptainAwesome
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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Esmeralda Gómez
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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Yuki Tanaka
•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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LilMama23
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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Dmitri Volkov
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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Amara Okafor
•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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