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Arnav Bengali

Can you collect unemployment if your company shuts down for a week?

My employer just told us the whole office is closing for a full week - not a holiday, not scheduled PTO, just a temporary shutdown because they're slow and want to cut costs. We're all hourly and won't get paid for any of that time. I've never filed for unemployment before and honestly didn't even think this was something you could do for just one week. Does anyone know if California EDD covers a situation like this? Do I even qualify if I still have a job to go back to? I don't want to go through all the trouble of applying if EDD is just going to deny me because I technically wasn't laid off.

Temporary shutdown week at my job happened last spring - same deal, employer just said we're closing for a week, no pay. Unemployment benefits for that exact week were absolutely on the table, so I looked into Claimyr (claimyr.com) to get through to EDD faster because UI Online had a note I didn't understand and I needed a live agent to explain it. The agent told me the pending status on that week was just EDD verifying my regular wages, not a flag on my eligibility, and that I should certify as normal once the week passed. Claimyr's video on reaching a live person at EDD if you want to see what that looks like: https://youtu.be/JmuwXR7HA10

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Really glad you shared this - the pending status thing is exactly what I'd be scared of. Did you end up getting paid for that week without any other issues?

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Yep, payment came through within a couple days after I certified online. The agent's explanation was all I needed to stop worrying.

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Appreciate you sharing the detail about what the agent actually said. That part about verifying wages vs flagging eligibility is the kind of thing nobody tells you upfront.

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Temporary shutdowns are one of the clearest cases where unemployment makes sense. You're out of work through no fault of your own, your hours went to zero, and there's no pay coming in. EDD was literally built for situations like that. File right away - the claim starts on the Sunday of the week you apply, so the sooner you get in the better.

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I keep second-guessing myself because I still have a job technically. Does having a job to go back to actually matter?

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Having a job to return to doesn't disqualify you at all. EDD looks at the week you're out of work, not what comes after it. You're not getting paid, you're available to work - that's the test.

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Agreed. The 'I still have a job' thing trips a lot of people up but it really doesn't matter week by week.

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Filed for a shutdown week two years ago and the process was pretty straightforward. I went into UI Online at https://myedd.edd.ca.gov/ and filed the application, got the Notice of Award in the mail about two weeks later showing my weekly benefit amount. The only weird part was the waiting week - I didn't get paid for the first week I claimed, which basically ate up the shutdown week. Still worth filing because I had a couple more slow weeks after that where my hours got cut.

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Wait, the waiting week is unpaid? So if the shutdown is exactly one week I might not actually get anything?

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That's the thing - the waiting week is served once per claim. If your shutdown is just one week, yeah, that unpaid waiting week covers it and you'd get zero. But the claim stays open for 52 weeks, so any future week you're laid off or cut to part time you can certify for and actually get paid.

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This is a really important point that I wish someone had told me before I filed for a one-week thing. The claim being open for future use made it worth it though.

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So the waiting week only happens the first time? Like if the company shuts down again in two months on the same claim, I'd actually get paid for that one?

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Exactly. One waiting week per claim, that's it. After that every eligible week you certify for can be paid.

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The waiting week thing is true BUT don't let that stop you from filing. The shutdown week serves as your waiting week, the claim opens, and you're set for the rest of the benefit year. Lots of employers do rolling temporary shutdowns so it ends up being worth it.

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That actually makes a lot more sense now. I was thinking of it as a one-time thing but you're right that my employer might do this again.

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My company did three separate shutdown weeks last year. Filed once, used the same claim all three times after the waiting week was done. Saved me a lot of stress.

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To actually file: grab your Social Security number, your employer's full address, your last day worked before the shutdown starts, and your wages from the past 18 months. EDD needs all of that to build your claim. Apply online through myEDD because it's the fastest way, and don't wait until the shutdown is over to apply - do it now.

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Do they contact my employer? I'm worried about things being weird when I go back.

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EDD does notify your last employer when you file. But a temporary company shutdown is about as clean a reason as there is - there's no dispute about why you're out of work, the company made the call. Most employers in shutdown situations don't contest these claims.

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My HR person actually told the whole staff to file when we had a two-week shutdown. It's a normal thing.

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Something I didn't know when I first dealt with this: you have to certify every two weeks to actually get the money, not just file once. The application gets your claim started but then you tell EDD every two weeks that you were available and looking for work. Miss a certification and that week goes unpaid.

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How does the certification work if the shutdown is only one week? Do I certify once and then stop?

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You certify for whatever weeks you're out of work or on reduced hours. If the shutdown is just one week, you'd certify once covering that week and then stop until the next time you have a week with no pay or reduced hours.

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Also - keep certifying if anything ever gets appealed or disputed. EDD can only pay back weeks that were actually certified, so don't stop just because something looks uncertain.

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WAIT does anyone know if you have to register on CalJOBS for a one-week shutdown?? I had a similar thing happen and I totally ignored the CalJOBS requirement and I'm scared I messed something up. EDD sent me a letter about registering and posting a resume and I just panicked and didn't do it

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The CalJOBS registration - most claimants do have to do it within 21 days of the date on the letter EDD sends (it's the DE 8405). Not doing it can pause your payments. If you got that letter and ignored it, log into CalJOBS at caljobs.ca.gov and register now, post a resume, and then contact EDD to let them know.

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oh no the 21 days might already be up for me. do I just register anyway and hope for the best?

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Register right now regardless and then reach out to EDD through your UI Online account to explain the situation. Getting it done late is way better than not doing it at all.

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EDD does say they'll let you know if you don't need to register, so if you got the DE 8405 it means you do need to. Don't skip it.

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My question is about the work search part - do you have to prove you applied for jobs during a one-week company shutdown if you're just going right back to work after? That seems like a weird requirement.

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Every week you certify, EDD asks if you were able to work, available for work, and looking for work. That applies even during a temporary shutdown week. EDD doesn't publish a specific number of applications you need to make, but you do need to actually be out there looking.

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Even though I know I'm going back to my job in a week?

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Even then. The requirement is about being available during that week, not about whether you plan to return. Keep a note of anything you do - check a job board, reach out to a contact, anything that counts as actively looking.

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I always just kept a simple notes app record of what I did each week. Nothing fancy, just dates and where I looked. Never got audited but felt better having it.

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Can you get fired for filing unemployment during a temporary shutdown? My coworker told me the employer could retaliate and I'm now scared to file even though the whole company is shut down and nobody is getting paid.

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Retaliation for filing a legal unemployment claim would be a pretty serious problem for an employer. That said, if the whole company is shut down and everyone's affected equally, the employer has no reason to single you out - this isn't a you vs. them situation, it's just the system working the way it's supposed to.

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That makes sense. I think my coworker was thinking of a different situation where someone got let go and then filed.

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Filing during a company-wide shutdown is basically the least controversial unemployment claim there is. You're not accusing anyone of anything, there's no dispute.

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Direct deposit setup tip from someone who learned the hard way: when you get your claim going, change your payment method to direct deposit through myEDD if you want funds in your bank account. Otherwise EDD sends payments to a Money Network prepaid debit card. Either way works fine but I didn't know about the card and was confused when no check showed up.

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I had no idea about the Money Network card. Good to know before I start this process.

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Payment info also updates daily in UI Online and you can check status at the EDD phone line any time. The online route is just the fastest once you're certified.

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my company does this every january its so annoying, we all file and collect for those two weeks and then go right back to work. been doing it three years in a row now. it's like clockwork at this point

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Honestly that's just the system doing what it's supposed to do. Seasonal or recurring shutdowns are exactly the reason these benefits exist.

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This actually makes me feel way better about the whole thing. If people do it regularly it can't be that complicated.

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The benefit amount question - your weekly payment is calculated from your highest earning quarter in the base period, which is basically your wages over a specific window of time before you filed. It won't match your full weekly paycheck, it'll be somewhere in the $40 to $450 range depending on what you earned. EDD has a calculator on their site where you can get an estimate before you even apply.

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$450 max is less than I make in a week but it's definitely better than nothing for a week I'm not working.

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Exactly. For a one-week shutdown it's partial coverage. The real value is having the claim open for future use if your hours get cut again.

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The DE 429Z they mail you after you apply shows your official weekly benefit amount. If the number on it looks wrong compared to your actual wages, you can appeal it in writing within 30 days of the mailing date.

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EDD taxes question since I see it come up everywhere: your unemployment benefits count as federal taxable income. When you certify you can choose to have 10 percent withheld for federal taxes. California doesn't tax these benefits though, so only federal matters. EDD mails you a 1099G in January.

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Good to know about the 10 percent option. I'll probably take that to avoid a surprise at tax time.

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i always forget about the 1099G until tax season and then panic. its in UI Online too under the payments section if you need it before the mail arrives

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Partial week question that probably applies here: if your employer is only cutting you to like three days instead of a full shutdown, you can still file. You'd report those wages when you certify and EDD adjusts the payment. The first $25 or 25 percent of what you earn in a week (whichever is bigger) doesn't count against you, then the rest gets subtracted from your benefit.

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So partial shutdowns where you work some days still let you collect the difference?

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Pretty much. EDD designed this for exactly that situation. You'd report what you earned and they'd calculate the adjusted payment.

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Used this during a slow stretch where I went from 5 days to 3 days a week. Got a reduced benefit each week but it added up. Definitely worth it.

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Nobody mentioned the CalJOBS resume requirement clearly enough for new filers: you don't just register, you have to actually post a resume on the site. Creating an account and leaving it blank isn't enough. EDD watches for the posted resume as the completion step.

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oh this explains so much. I registered but never posted a resume. going to fix that right now.

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Correct. The registration and the resume post are both required. EDD confirms completion when both are done.

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Question for anyone who's done this - when you apply and EDD sends that DE 429Z award notice, is that the same as getting approved? Like does that mean you're definitely getting paid?

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The DE 429Z shows what your claim could pay each week - it's based on your wages, not a decision that you're eligible. The actual payment happens after you certify for a week and EDD processes it. If there's any eligibility question, EDD might open a phone interview before releasing payment.

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So getting that letter isn't a guarantee, just showing what the numbers would be?

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Exactly that. It's the weekly amount calculation, not an approval letter. You'll know you're paid when the funds actually hit.

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A lot of people mix these two things up. The DE 429Z is basically EDD doing the math on your wages. Actual eligibility gets confirmed through payments or through a Notice of Determination if there's a question.

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Real talk about the phone line: 1-800-300-5616 runs Monday through Friday 8 to 5 Pacific and it gets jammed especially early in the week. If you have something specific to ask an agent, try calling right when they open or later in the afternoon closer to 4. Lunch hour tends to be worse.

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Has anyone had luck with the live chat option instead? I hate being on hold.

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Live chat is through the Help button in UI Online and it runs weekdays 9 to 2. Much shorter wait in my experience but it only works when you're already logged into your account.

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For anything that needed a real back-and-forth conversation about my claim details, I ended up talking to an agent through Claimyr instead of spending a morning redailing. Got the same EDD agent you'd reach by phone, just without the hold music.

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Afternoon on Fridays tends to be lighter on the phone too. Worth trying around 3 or 4 if mornings don't work.

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One thing that helped me keep the whole process less stressful: I saved every confirmation number, every notice EDD mailed, and took screenshots of UI Online whenever the status changed. When I had a question for EDD later, I could tell them exactly what I was looking at and when. Made the conversations go a lot faster.

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That's a really practical habit. I'll start a folder for all of this before I even apply.

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Seriously worth it. I've had to reference a DE 429Z date for an appeal window once and I was so glad I had it. Everything EDD sends has a date on it that matters.

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Same approach here. I keep a notes doc with every date I certified, every confirmation, every status I saw in UI Online. Never needed it for anything dramatic but felt way better knowing it was there.

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Coming back to the original question one more time because it's worth being clear: a full week of company shutdown with zero pay is exactly the kind of week UI was designed for. File online through myEDD, verify your identity through ID.me when prompted, register on CalJOBS and post your resume within 21 days of the DE 8405, and certify every two weeks you're out of work or on reduced hours. That's the whole process.

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This is the clearest summary I've seen in this whole thread. Thank you to everyone who replied - I went in thinking this probably wouldn't work for a one-week situation and now I understand the whole picture way better.

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The waiting week thing means you might see zero from this specific shutdown week, but the claim being open for 52 weeks is the real value. Future shutdowns, future slow weeks, any week your hours get cut - all of it can be claimed.

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The ID.me step tripped me up when I first filed. Worth mentioning that you take a photo of your ID and they verify it digitally, then share it with EDD. Straightforward once you know what to expect.

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Posting this summary should be somewhere everyone sees when they first search this question. All the pieces are here.

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