Do companies pay unemployment or does it come out of my own money with California EDD?

Wait so my employer actually pays MORE if a lot of their employees file claims? That's kind of wild. Does that mean they have a reason to fight my claim to keep their tax rate down?

Exactly right. It's called an experience rating system. Employers with more former employees collecting UI benefits get assigned a higher tax rate. So yes, they do have a financial incentive to contest claims, which is why some companies will protest your claim if they think they can argue you were fired for cause or quit voluntarily.

This happened to me. My old employer fought my claim saying I quit when they actually laid me off. California EDD did an investigation and sided with me but it took like 6 weeks of adjudication before I got paid anything.

Oh! So the SDI deduction I see on my check is different from unemployment? I always thought that was the same thing. So if I file for regular unemployment I'm drawing from the employer-funded pool, not my SDI contributions?

Correct. SDI = State Disability Insurance, funded by employees, covers disability and Paid Family Leave. UI = Unemployment Insurance, funded by employers, covers job loss. Two totally separate programs under California EDD. Don't mix them up when you call or they'll route you wrong.

ugh I mixed these up when I first called EDD and wasted like 45 mins being transferred around lol

How long does the employer response period usually take? And is there any way to check if my employer has responded yet through my UI Online account?

Employers typically have about 10 days to respond to EDD's notice. You won't see their actual response in UI Online but you'll see if your claim moves into adjudication status, which signals they disputed something or EDD needs to verify information. If it does go to adjudication, that's when you really want to be able to reach a live agent.

I never knew employers had a deadline to respond. My claim sat for 5 weeks and nobody told me anything. The whole system is designed for you to just give up and stop asking questions if you ask me.

Two months with no payments?? How did she survive that? Did she eventually get backpay for those weeks?

yes she got all the back weeks paid at once when edd finally decided in her favor. but those 2 months were brutal. she said she was on the phone for hours every day trying to get through to someone at edd and could barely reach anyone

Backpay getting released all at once is actually kind of a silver lining I guess but yeah the waiting is awful. I had a similar situation and the not-knowing is the worst part

So if my separation was a legitimate layoff due to budget cuts, would my employer still have reason to fight it?

A true layoff (reduction in force, budget cuts, position elimination) generally would not give the employer strong grounds to contest. Those are legitimate qualifying reasons for UI. Where employers typically fight back is if they claim you were terminated for misconduct or that you voluntarily resigned. Layoffs are generally undisputed.

This is the most useful explanation in this whole thread honestly. My employer tried to contest my claim calling it 'voluntary separation' when the reality was they made my conditions so bad I had no choice but to leave. That's called constructive discharge and EDD does recognize it but you have to argue your case.

This is really reassuring actually. I was a little worried that my old company could just say no and that would be the end of it.

Nope, your former employer has no veto power. EDD is an independent state agency and they make the final call. The employer gets to present evidence and their account of events, but so do you, and EDD weighs both sides.

Been through this exact process. EDD interviewed me over the phone for like 20 minutes asking about why I left and what happened. Then interviewed the employer separately. Then made a decision. Very fair process in my experience even though it's slow

The part about continuing to file weekly certifications even during adjudication is gold. I had no idea I needed to keep doing that. I actually almost stopped filing because I thought what's the point if they're not paying me.

Do NOT stop filing. That is one of the most common mistakes people make during adjudication. If you stop certifying and then EDD approves your claim, you only get backpay for the weeks you actually certified. Any weeks you skipped are gone.

Seconding this so hard. I learned this the hard way. Missed 3 weeks of certifications during my adjudication because nobody told me to keep filing and lost those weeks permanently even after my claim was approved. Keep filing no matter what.

I was a W-2 employee thankfully. But good to know for others. Can misclassified workers do anything about it?

Yes actually! California has pretty strong worker classification laws (AB5). If you believe you were misclassified as a contractor when you should have been an employee, you can file a complaint with the Labor Commissioner AND potentially still claim UI if EDD determines you were actually an employee for their purposes. It's a complicated process but some people have successfully gotten benefits this way.

This is correct and worth emphasizing. California EDD has its own test for employment classification (the ABC test) that's actually more protective of workers than federal standards. Being classified as 1099 by your employer doesn't automatically mean EDD agrees with that classification.

No, your current or former employers cannot see your weekly certifications or benefit amounts. That's private information between you and California EDD. Your former employer only gets notified if you file a claim (so they can respond to it) and later if a determination is made. They don't get ongoing access to your claim details.

huge relief thank you. was getting kind of paranoid about it

Your new employer does have to report wages they pay you though, which affects your UI benefit calculation if you're doing partial unemployment. So EDD knows about your part-time income through wage reporting but your employer doesn't see your UI details.

How does EDD determine your weekly benefit amount? Is it a percentage of your old salary?

Roughly 60-70% of your average weekly wages during a specific base period, capped at a maximum weekly benefit amount. The exact formula is on the EDD website. For 2025 the max is around $450/week I believe though you should verify that on edd.ca.gov

The max is actually higher now - California raised it. Check edd.ca.gov/unemployment/calculate-your-benefits.htm for the current calculator. I think it's closer to $450-$1,300 range depending on your prior wages but the website will give you the accurate current figures.

Seven weeks is really discouraging to hear. Did you have anything to live on in the meantime?

It was genuinely rough. I ended up borrowing from family. The thing that helped most eventually was actually being able to talk to an EDD agent directly to understand where my claim stood. I'd been calling for weeks with no luck until I tried Claimyr - got through to a real human at EDD within a reasonable wait which was a completely different experience than dialing the main number and getting disconnected or busy signals. Their site is claimyr.com if you end up needing it.

I'm bookmarking that. I have a feeling I'm going to need every tool available if this process takes that long.

Also worth knowing - if you have savings, continue living as normal as possible and preserve that cash. Don't assume the claim will resolve quickly. The 7-week timeline is actually pretty typical when there's any kind of complication.

Did you have to submit documentation through UI Online or mail it or what?

There's an upload option in UI Online now for submitting documents related to your claim. You can also mail or fax but the online upload is way faster. Make sure you keep copies of everything you submit and write down the date you submitted it.

Also take screenshots of your UI Online status before and after you submit documents. I've heard of cases where EDD claimed they didn't receive something that was definitely submitted. Having timestamps helps.

That's actually good to hear. I worked for a small company, like 15 people. So maybe they won't bother fighting it.

Very possible. Small employers sometimes don't even respond to EDD's notice within the deadline, in which case EDD typically proceeds with approving the claim based on the claimant's account. I've seen that happen more than you'd think.

my company had like 8 people and they 100% did not protest my claim at all. was approved in like 2 weeks. small company things

If your claim moves into adjudication it will show as 'pending' or sometimes you'll see a notice in your UI Online inbox asking you to call EDD or schedule a phone interview. You won't see the employer's specific response but the change in your claim status is the signal. If it's been more than 3 weeks with no change and you're not receiving payments, it's worth trying to contact EDD directly.

its been 3 weeks exactly so i guess i should try calling

Given how hard it is to get through to EDD by phone, definitely try Claimyr (claimyr.com) - check out their video at https://youtu.be/JmuwXR7HA10 to see how it works. The regular EDD phone line is brutal for actually reaching a live person, especially when your claim is in any kind of pending status and you need real answers.

ok just watched that video might try it tomorrow morning if i cant get through the normal way

Yes, the UI tax is calculated as a percentage of taxable wages per employee up to a wage cap (called the taxable wage base). In California the taxable wage base for UI purposes is currently $7,000 per employee per year. So employers pay their UI tax rate on the first $7,000 of each employee's annual wages. After $7k in wages, that employee's wages aren't subject to additional UI tax for that year. It's capped so higher earners don't result in proportionally higher UI taxes per person.

That's lower than I expected. $7k taxable wage base seems like it was set a long time ago and never updated.

You're right, it hasn't been updated frequently and there have been ongoing discussions in California about raising the taxable wage base to better fund the UI system. The federal FUTA taxable wage base is only $7k too, both are considered outdated by most economists who study unemployment insurance funding.

Thank you for this. Honestly I did feel a little guilty filing like I was somehow mooching. But knowing my employer funded this specifically for situations like mine makes me feel better about it.

That guilt is incredibly common and honestly unnecessary. The UI system exists precisely for moments like yours. Your employer paid into it on your behalf for as long as you worked there. Use the benefit it's there for.

The guilt thing is SO common in these forums. People treating UI like charity when it's literally an insurance product that was paid for by your employment. Claim what you're entitled to.

Agreed. Nobody feels guilty using car insurance after an accident. UI is the same concept just for job loss.

Really good advice. I've been taking screenshots but not writing down call attempts. Starting a log today.

also note the name of every EDD rep you talk to if you can get it. some will give you a first name or ID number. having that can help if there's ever a discrepancy about what you were told

The paper trail saved me during an overpayment dispute. I had documentation showing I reported exactly what EDD said to report. Without it I would have had no way to fight the notice.