Can my sister file for EDD after employer bounced payroll checks and manager disappeared?
My sister is in a really weird situation with her job and I'm trying to help her figure out what to do. She works (worked?) at a small marketing agency in San Diego and last Friday when everyone tried to deposit their paychecks, they ALL bounced. The company owner sent a vague email about 'temporary cash flow issues' but promised they'd make it right this week. It's now Thursday, the office has been locked since Tuesday, and the manager isn't answering calls or texts. Nobody has officially been fired, but obviously something is very wrong. Can my sister apply for unemployment even though she wasn't technically laid off? The company owes her about $3,200 in wages for the past 3 weeks. Has anyone dealt with something like this before? She's freaking out about paying rent next week.
20 comments


Yara Haddad
Yes, your sister should absolutely file for unemployment ASAP. This situation is called 'constructive discharge' - when working conditions become so intolerable that an employee is forced to quit. In this case, not being paid is a clear example. She doesn't need to wait for an official termination. She should file her claim online through UI Online and explain exactly what happened with the bounced checks and disappearing management. Make sure she also files a wage claim with the Labor Commissioner's Office for the unpaid wages.
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Connor Murphy
•Thank you so much! I'll tell her to file right away. For the wage claim, does she need any specific documentation besides her paystubs and the bounced check notices?
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Keisha Robinson
omg the EXACT same thing happened to my cousin last year!!! her boss just stopped showing up and they all got locked out. she got approved for benefits but it took like a month. tell ur sister to screenshot ANY texts or emails from her work about the payroll problems, she'll need those!!
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Connor Murphy
•That's a great idea about the screenshots! She has the email about the 'cash flow issues' and some texts with coworkers. I'll tell her to save everything.
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Paolo Conti
When she files, she should select "laid off/discharged" as the reason for separation, then explain the full situation in the comments section. EDD will likely schedule a phone interview to get more details. Also, she should continue looking for work and documenting her job search efforts while waiting for approval.
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Keisha Robinson
•yep and make sure she certifies every 2 weeks even while waiting!!! i missed one certification when this happened to me and it messed everything up!!
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Amina Sow
The CA Labor Commissioner's office takes wage theft VERY seriously. Your sister should file both a UI claim AND a wage claim simultaneously. Don't wait for the employer to resurface because they probably won't. Also, if the company is going under (sounds like it is), she needs to get her claim in early before any bankruptcy proceedings start. For the wage claim, she'll need: - Copies of bounced checks - Paystubs - Employment contract if she has one - Time records - Any communications about the missed payments I went through something similar in 2023 and got all my back wages plus penalties.
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Connor Murphy
•This is incredibly helpful, thank you! I didn't even think about bankruptcy. She's gathering all her documentation now. Did EDD approve your claim right away or did you have to go through appeals?
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Amina Sow
I had to do a phone interview first, then got approved. The key was documenting EVERYTHING and being very specific about dates, amounts owed, and communications. Once approved, I still had to wait about 3 weeks for the first payment.
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GalaxyGazer
•3 weeks is actually fast lol. took me 2 months to get my first payment cuz edd kept saying they couldnt reach my employer (duh they were gone) 🙄
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Oliver Wagner
If your sister is having trouble reaching EDD to ask questions or check on her claim status, try Claimyr.com. I used their service after trying for DAYS to get through to EDD about a similar situation (my employer shut down without notice). They connected me with an EDD agent in about 15 minutes. There's a video demo at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km that shows how it works. Totally worth it because the agent was able to expedite my claim once I explained the situation.
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Connor Murphy
•I'll definitely keep that in mind if we run into problems! Right now she's just starting the application process, but I've heard EDD is nearly impossible to reach by phone.
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Natasha Kuznetsova
YOUR SISTER NEEDS TO FILE A POLICE REPORT TOO!!! This is criminal behavior by the employer! I went through this exact scenario in 2021 and the police report helped me get my UI approved faster because it proved I wasn't lying. The CA EDD system is DESIGNED to doubt you and make you jump through hoops. Also tell her to contact any coworkers and see if they want to file wage claims together - strength in numbers!!!!
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Amina Sow
•A police report isn't necessary for UI approval and could complicate things. Bounced checks due to business failure usually aren't criminal unless there's evidence of intentional fraud. The wage claim with the Labor Commissioner is the correct route for unpaid wages.
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GalaxyGazer
tell ur sister to apply for calfresh too while shes at it. she can get food benefits while waiting for edd to approve her claim. and the interview for calfresh is way faster.
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Connor Murphy
•That's a good suggestion, I think she would qualify based on her income now. I'll mention CalFresh to her.
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Yara Haddad
One more thing - when your sister certifies for benefits, she needs to report any income she receives, including if the employer eventually pays those bounced checks. But she should definitely file now rather than waiting to see if they pay. The EDD will establish what's called a "last day worked" which will be important for determining eligibility. If the employer contests the claim, she'll have an opportunity to explain the situation during the phone interview.
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Connor Murphy
•She's starting the application tonight. She's worried about the phone interview because she doesn't have an official termination - should she just explain that no one could get into the building and management disappeared?
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Paolo Conti
Yes, that's exactly what she should explain. Just be very clear about the timeline: when paychecks bounced, last day actually worked, when the office was found locked, last communication from management, etc. The EDD interviewer will understand this situation - it happens more often than you'd think. They just need to establish that she didn't quit voluntarily and is available for full-time work.
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Connor Murphy
•Thank you so much for all the advice everyone! I've shared all these tips with my sister and she's feeling much more confident about navigating this mess. I'll update this thread once she gets a decision from EDD.
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