Does an employer have to pay unemployment in California EDD?

Oh okay that makes way more sense. So they can't just refuse to pay me personally, they respond to EDD about the circumstances?

exactly this. my last employer tried to contest my claim saying i quit voluntarily but i had documentation showing i was laid off and EDD sided with me

This is correct. The employer tax contribution is mandatory under California Unemployment Insurance Code. What varies is whether they contest the REASON for separation, not whether they participate in the system at all.

Self-insured employers are a real thing but it's relatively rare and only applies to certain large employers. Even self-insured employers still have to pay valid unemployment claims - they just administer it differently. California EDD still oversees the process. It doesn't mean employees lose their rights to UI benefits.

oh ok thanks for clearing that up i had no idea there were different types

Yeah self-insured is pretty uncommon for most workers to ever deal with. If you worked somewhere big enough to be self-insured you'd probably know it

Your manager said that to you?? That's so messed up. And thanks for the tip about Claimyr, I've been trying to call EDD for two days and can't get anyone

ugh employers like that are the WORST. glad your claim went through

I've seen Claimyr mentioned a few times now. Does it actually work or is it just another thing that overpromises?

It worked for me. I was skeptical too but after day 4 of redials going nowhere I tried it and got connected to an actual EDD rep within a couple hours

That's really reassuring. I was laid off because the company lost a major contract and had to cut my whole department. There's no misconduct or anything like that.

Then honestly you have nothing to worry about. Loss of contract leading to departmental cuts is textbook lack of work. File your weekly certifications, keep your job search log, and you should be fine.

same situation happened to me, whole team got cut when our project was cancelled. EDD approved me within 3 weeks no problem

That could actually work in your favor legally. If they called it a layoff but immediately refilled the position that could be evidence of something other than a legitimate layoff - possibly wrongful termination territory. For California EDD purposes it probably still gets filed as a layoff initially, but document everything you know about the rehire. If your employer contests the claim having that documentation matters.

Wow I hadn't even thought about it that way. I have screenshots of the job posting that went up 2 weeks after I was let go.

Keep those screenshots. For EDD adjudication purposes you'd just file as laid off / position eliminated and let EDD work through it if the employer contests. The documentation about the immediate rehire would be relevant if it goes to an appeal hearing.

This is really helpful, thank you. I didn't realize I might have more options here.

Good to know, I'll watch my mail closely

also check your myEDD portal online not just physical mail - sometimes notices appear there first

THIS. I almost missed a determination notice because I was only checking my email. Log into myEDD regularly people

This is accurate and a really important point. The experience rating system (also called UI reserve account) means employers with lots of UI claims pay higher tax rates. So there IS a financial motive to contest even valid claims. Knowledge is power - knowing this helps claimants understand why an employer might push back even on a clean layoff.

So my employer might fight it just to keep their costs down? Even though it was clearly a layoff?

It's possible but honestly for a clear cut layoff most employers don't bother. The ones that contest aggressively are usually smaller businesses or ones with sketchy circumstances around the termination.

My old company contested every single claim no matter what. Their HR actually told someone 'we always do this.' Super shady but knowing you can appeal helps

Ok I finally looked into this Claimyr thing after seeing it mentioned here. Seems legit - going to try it because I've literally called EDD 23 times this week

23 times!! Yeah that's exactly the situation it helps with. Good luck

same I gave up after like 15 attempts in one day. might try this

Yeah I saved all my emails and have the layoff letter. Should I upload anything to myEDD proactively?

I would wait until EDD specifically requests documents unless you're responding to a specific question on your claim. Uploading stuff randomly can sometimes cause more questions than it answers.

This is good advice. Only submit what EDD asks for in response to their specific requests. Unsolicited documents can complicate straightforward claims.

Mass layoffs are actually the clearest cut cases for UI approval. When an employer lays off multiple employees simultaneously there's essentially no credible argument that it wasn't a real lack-of-work situation. The employer would look pretty ridiculous contesting that.

Agreed. A mass layoff is very difficult to contest successfully. California EDD would see right through any attempt to claim those employees quit or were fired for misconduct when an entire department was eliminated.

ok good because thats what happened to my roommate and she was scared to file thinking her employer would block it

That's actually really reassuring to hear. I felt like I was going to have to build some huge case to prove I deserved benefits.

Nope! Layoff is the default eligible scenario. The employer has to come up with a legitimate reason to disqualify you, not the other way around.

wait so if i was fired but my employer can't prove misconduct I could still get benefits?

Yes - being fired doesn't automatically disqualify you. If EDD determines the discharge was not for misconduct connected with work, you can still receive benefits. The employer has to establish that the reason for termination meets the legal definition of misconduct under California UI code.

6 weeks of adjudication sounds terrible. Did your bills pile up during that time?

It was really stressful financially. Luckily I had a small emergency fund. If you can, try to have at least a couple months of expenses saved just in case adjudication drags out.

FMLA leave and they called it job abandonment?? That employer sounds awful

Absolutely shady. But documentation saved me. Keep everything in writing always.

Length of employment doesn't directly affect the employer's ability to contest. What matters is the reason for separation. However, your EARNINGS history over the past 5-18 months affects your benefit amount and whether you meet the minimum earnings requirements to qualify for UI at all. Those are two separate issues.

oh interesting. I only worked there 8 months, wondering if that's enough for the earnings requirement

California EDD looks at your base period earnings - typically the first 4 of the last 5 completed calendar quarters. You generally need to have earned at least $1,300 in your highest quarter or $900 in your highest quarter plus your total earnings in the base period must be 1.25x your high quarter. 8 months of work could definitely be enough depending on your wages.

Four months is a long time. But good to know there's a real appeals process that actually works.

Yeah the ALJ hearing was actually really fair. Judge let me explain my side, looked at the documentation, made a decision based on facts. Way less scary than I expected going in.

This is such an important thing for people to know - the appeal hearing isn't like a court case. It's a phone call. You don't need a lawyer necessarily. Just be organized and truthful.

Thanks for sharing this. I have a hearing coming up and I've been dreading it

Hearing this from someone on the employer side is actually super helpful, thank you

happy to help. employers who try to fight legitimate layoffs are usually wasting their own time and money. EDD isn't fooled by it

This HR perspective is refreshing and honestly confirms what I suspected - the experience rating incentive makes some employers TRY but most legit layoffs don't get successfully contested

This is actually a huge issue in California. After AB5, California has a very strict ABC test for determining employee vs. contractor status. If you meet the criteria of an employee under that test, it doesn't matter what your employer called you - you may be entitled to UI benefits. You'd need to file a claim and EDD will investigate the classification. This is definitely worth pursuing.

I didn't even know AB5 was a thing. I've been assuming I had no options because of how they classified me.

File the claim and let EDD make the determination. Plenty of misclassified workers have successfully received UI benefits in California after EDD investigated and determined they were actually employees. The burden shifts to the employer to prove you were legitimately an independent contractor under the ABC test.

Ok I'm going to file. Thank you!!

The not knowing is definitely the worst part. I keep refreshing my myEDD portal hoping something will change

I know that feeling so well. The portal is frustratingly vague about what stage things are at. Talking to an actual agent who could see my full file was the only thing that actually calmed me down

same experience here. the portal statuses mean very little without context from a real person

This is a perfect summary, thank you! I feel so much better about my situation now than I did when I posted this.

Great summary. I'd add: make sure you keep filing your weekly certifications throughout any adjudication or appeal process. Benefits are paid retroactively if you win but only for weeks you certified.

Oh that's a critical addition, thank you! Don't stop certifying even if your claim is under review.

YES the weekly certifications thing is so important. I've seen people win appeals and then discover they forgot to certify and lost weeks of back pay. Don't let that happen to you.