Can small business owners get unemployment in California EDD?

I did actually work a few shifts at a friend's restaurant last year to help cover slow months - maybe 6 weeks total. Would that count?

Yes! Those W-2 wages from the restaurant job would be included in your base period. You'd need to have earned at least $1,300 in your highest quarter, or $900 in your highest quarter AND total base period wages of at least 1.25x your highest quarter earnings. Definitely worth filing a claim to find out.

This is good info. I'd also add that if you incorporated as an S-Corp and paid yourself an actual salary with payroll taxes, you WOULD have paid into UI and could potentially qualify. It all hinges on how you structured the pay.

That's actually really encouraging. I'm going to pull out all my tax documents tonight.

same boat here, closed my landscaping business and had no idea where to start with EDD

For what it's worth the actual online application through UI Online was pretty straightforward once I figured out which wages to report. The harder part was getting a human to answer questions when something got flagged.

I hadn't heard of that before. Is it legit? I'm nervous about giving out any info related to my EDD claim.

I understand the hesitation - I looked into it pretty carefully before trying it. It's just a callback service that helps you get through the phone queue, nothing sketchy. The actual conversation is directly with an EDD agent.

I've seen this mentioned in a few unemployment groups. Seems like it works best when you have a complicated situation that really needs a live agent rather than just a standard claim status question.

Self-employment taxes don't include contributions to the Unemployment Insurance fund unfortunately. That's a separate payroll tax (SDI/UI) that only applies to W-2 employment. It's a genuine gap in the system for a lot of small business owners.

ugh that makes no sense. so a person can work for themselves for 10 years paying all these taxes and have zero safety net. cool cool

There have been some policy conversations in California about expanding coverage to self-employed workers but nothing has been passed yet for regular UI. Some people turn to business interruption insurance as an alternative safety net when they're running a business, though that didn't help those of us who just couldn't make the numbers work anymore.

I was set up as a sole proprietor the whole time, no W-2s to myself. But I definitely had those restaurant shifts last year so I'm going to pursue that angle.

That's your best path then. Even a relatively small amount of W-2 wages from another employer can establish a valid claim as long as you meet the minimum earnings thresholds. Good luck - hope it works out for you.

This is why everyone told me to set up an S-corp from the beginning. I ignored the advice and now I'm in the same boat as OP honestly

Five weeks in adjudication sounds awful. Did you ever figure out why it got flagged for additional review in the first place?

I think it was because I listed my occupation as 'business owner/self-employed' and then also had W-2 wages from a different employer, so it looked confusing to their system. An agent eventually told me I should have just listed the W-2 job as my primary employment situation when filing.

adjudication is the worst. had mine sitting for 6 weeks with zero communication from edd. you just have to wait it out unfortunately

For mixed-income situations especially, it's worth being really precise about how you describe your employment history when you first file. The system tends to flag anything that doesn't fit a clean 'employed then laid off' narrative.

The 'able and available' requirement - does that mean I can't be doing any consulting or freelance work while on unemployment?

You can do some work but you need to report all earnings on your weekly certifications. EDD will reduce your benefit for weeks where you earned income. There's a formula but roughly your benefit is reduced by the amount you earned over $25. It's not a cliff where you lose everything if you do any work.

This is really important info. A lot of people don't report their freelance earnings and then get hit with an overpayment notice months later. Always report everything on your weekly cert even if it's a small amount.

For purposes of UI eligibility, EDD only counts wages from covered employment (W-2 jobs with UI taxes withheld). Venmo payments from customers would be self-employment income and wouldn't count toward your base period for a regular unemployment claim. However if you also had any W-2 jobs, those wages are what matter.

I never had a real job job, just the grooming business since I was like 23. So I'm probably out of luck huh

Unfortunately if you have no W-2 wages in your base period, you wouldn't qualify for regular California UI benefits. You might want to look into whether there are any local or state small business support programs that could help in the interim.

Same, I'm really glad I posted. Came in thinking I probably had zero options and now I at least know there's a path to check out.

are you going to file the claim? keep us posted on how it goes

Does the phone interview happen automatically or do you have to request it?

It's usually triggered automatically when EDD needs to verify information or when a claim falls outside their standard pattern. You'll get a notice in your UI Online account telling you a phone interview is scheduled, but sometimes the scheduling is a mess and it's better to be proactive about calling them.

YES the scheduled phone interviews are a whole thing. I missed mine because I didn't see the notice in time and then had to wait another 2 weeks to get rescheduled. Check your UI Online inbox constantly.

Great question. California EDD has an 'alternate base period' option that uses the most recent 4 completed calendar quarters instead of the standard base period. If your W-2 wages from recent work fall in the most recent quarters but not the standard base period window, you might qualify under the alternate calculation. EDD is supposed to automatically check this when you file but it's worth knowing about.

And if you're denied, you do have the right to appeal. You have 30 days from the date on your denial notice to file an appeal. The appeal goes before an Administrative Law Judge and you can present documentation of your wages and employment history. Don't just accept a denial if you believe you had qualifying wages.

Thank you both - this is exactly what I needed to know. The alternate base period thing is new information for me.

That makes complete sense actually. As long as the wages were properly reported and UI taxes were paid on them, the employee (even a family member) has valid coverage. The structure of the business matters a lot.

yeah i wish someone had told us years ago to set it up so i was also on payroll. would have made things so much easier when we had to close.

You can file your initial claim entirely online through UI Online at the California EDD website. Most people do it that way. Calling is really only necessary if you have a complicated situation, something gets flagged, or you need to follow up on a pending claim.

ok cool. the website looks confusing though ngl

It took me a while to get through it but just go section by section and answer everything as accurately as you can. The part about listing your employers is the most important section so take your time there.

Sole proprietor here so this doesn't apply to me but good info for others reading this

wish i had incorporated when i started. lesson learned the expensive way

It's genuinely one of those things nobody tells you when you're starting a small business. The gap in unemployment coverage for self-employed people is real and significant.

This is really encouraging to hear. Thank you for coming back and updating.

glad it worked out for you! gives me hope for my situation too

Good luck to everyone in this thread. The process is frustrating but it exists for a reason - use it if you qualify.

The Social Security earnings statement tip is brilliant, I never would have thought of that. Going to pull mine tonight.

This is great practical advice. The SBDC resources are underused by a lot of small business owners who don't know they exist.

Seconding the 'just file and let EDD decide' advice. A lot of people talk themselves out of filing because they assume they don't qualify. EDD has to make that determination, not you.

For a claim filed in mid-2025, your standard base period would typically cover October 2023 through September 2024, which would include early 2024. So yes, those wages should fall within your base period! Definitely file and see. It might be close on the minimum earnings threshold but it's worth checking.

oh my gosh ok i'm filing tonight. fingers crossed

Good luck!! Report back and let us know what happens.

Good luck! When you use Claimyr, have your claim info and the wage details ready so you can give the agent a clear picture of your situation. The agents are generally helpful when you can explain the mixed income setup clearly.

Rooting for you!! The adjudication process takes time but hang in there. Keep checking your UI Online inbox for any requests for information or scheduled interviews.

Smart move filing. The adjudication for mixed income situations can take a few weeks but if your wages are documented it should eventually come through. Document everything - keep records of all your W-2s, any correspondence with EDD, and dates of any calls you make.

this is such a good point. when we closed i immediately pointed all our employees (even the part time ones) to file right away. they all got approved.

Exactly - don't let employees or partners assume they can't file just because the owner can't. Their eligibility is separate.

Good luck!! Hopefully no adjudication for you. Keep us posted.

Great that you filed! For anyone in a similar situation who wants to talk through their specific circumstances before filing, remember local SBDC offices offer free consultations and some staff are familiar with unemployment eligibility questions for business owners.