Can I file for EDD if employer suddenly stops payroll? Red flags my company is collapsing

Yes, you can absolutely file for unemployment if your employer stops paying you, even if they haven't officially terminated you! This is considered "constructive discharge" in California. Here's what you should do: 1. Document everything - the missed payday, any communications about it, etc. 2. If possible, send an email asking about the missed pay to create a paper trail 3. File for unemployment immediately if you go unpaid for more than a few days When you certify, you'll need to report that your hours were reduced through no fault of your own (which is true - they're essentially reducing your compensation to zero). The EDD considers failure to pay as a legitimate reason to quit, so you should qualify for benefits. Don't wait for an official layoff - the company might drag this out for weeks.

I went through the EXACT same thing last year with a marketing agency!!! First it was "payment processing issues" then it was "temporary cash flow problems" then BOOM - company was gone. The owner literally ghosted us all. And guess what? The a-hole fought ALL our unemployment claims saying we voluntarily quit!!! Had to appeal and it was a NIGHTMARE!!! DO NOT WAIT. File now. When they ask why you're filing, select "still employed but hours reduced" and explain in the comments that your pay has stopped completely. Take screenshots of your bank account showing the missing deposit compared to previous ones. I'd also recommend looking for a new job immediately. The real estate market isn't going to suddenly improve, and it sounds like your company is already underwater.

my wifes company did this in 2023. They said payroll was coming "next week" for like a month. she should have quit sooner bc they never paid her for those last 3 weeks. most of the real estate companies are struggling, not ur fault

If your employer stops paying you, it's considered a "separation from employment" even without a formal termination. I had to file under similar circumstances in 2022. Make sure to do the following to protect yourself: 1. Send a formal written request for your missing wages (email is fine) 2. If they don't pay within 72 hours, file a wage claim with the California Labor Commissioner's Office 3. THEN file for unemployment When you file, select "still employed but with reduced hours/wages" and explain that your employer has stopped paying. You'll likely need to do a phone interview with EDD to explain the situation. The biggest challenge you'll face is that they might fight your claim, saying you're still employed. That's why documentation is crucial. Good luck!

wait why u filing for unemployment if ur still employed? doesnt make sense. just talk to ur boss first maybe payroll made a mistake? happened at my job once and everyone freaked out but it was just a bank error lol

Listen, I had this EXACT problem with a property management firm in 2023. First paycheck was late, then missing, then the company folded. DO NOT WAIT to file for unemployment! The EDD system is so backed up and frustrating. I made the mistake of waiting for an "official" layoff and it cost me weeks of benefits. EDD considers stopping pay as constructive termination. The problem I had was getting through to EDD when I had questions during my claim process. After days of calling that stupid automated system and getting the "we're experiencing high call volume" message, I found this service called Claimyr (claimyr.com) that got me through to an actual EDD rep in about 20 minutes. They have a video showing how it works here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km It was the only way I could get someone to explain my unusual employment situation. Definitely worth it because I had specific questions about the constructive discharge situation that the online system couldn't address.

I disagree with jumping straight to unemployment. First, you need to follow proper procedures for unpaid wages: 1. California Labor Code requires employers to pay within specific timeframes 2. You should first file a wage claim with DLSE (Division of Labor Standards Enforcement) 3. Only after establishing that your employer is violating labor laws should you consider unemployment EDD will likely ask if you've pursued all remedies for obtaining your wages before approving benefits. Document everything and give your employer written notice about the missing pay with a deadline for payment.

this happened 2 me and i just quit and got a new job, unemployment takes 2 long and u have to do all that certify stuff every week. just find another admin job theyre everywhere

UPDATE: I went through my files from when this happened to me. During my EDD phone interview, they specifically asked: 1. When was the last date you were paid? 2. What reason did the employer give for not paying? 3. Did you make a formal request for your wages in writing? 4. Are you still reporting to work? The interviewer told me that continuing to work without pay actually HURTS your unemployment claim because it suggests you're accepting the situation. She recommended formally requesting payment in writing with a deadline, then stopping work if not paid, THEN filing for unemployment. Just wanted to give you a heads up on what to expect!