Does unemployment cost the employer anything when you file a California EDD claim?
So I just got laid off last week and I'm about to file my California EDD unemployment claim but I keep second-guessing myself because my old boss made a comment about how 'it would cost him' if I filed. Is that actually true? Does unemployment cost the employer when an employee files? I don't want to screw over a small business owner who was actually decent to me, but I also genuinely need these benefits to cover rent while I job search. I've been googling but getting conflicting info everywhere. Someone told me employers pay into a fund and it doesn't matter if individuals claim, but another person said the employer's tax rate goes up based on how many former employees file. Which is it? Really stressed about this trying to figure out if filing is going to hurt him financially in a meaningful way.
73 comments

Andre Rousseau
This is actually a really common concern and I want to give you a clear answer. Yes, unemployment does have a cost connection to employers in California, but it's more nuanced than your boss probably made it sound. California employers pay into the State Unemployment Insurance (UI) fund through FUTA and SUTA taxes. The rate each employer pays is partly determined by their 'experience rating' - basically a track record of how many former employees have claimed UI benefits from them. So technically, if more of their former employees file claims, their tax rate can increase over time. HOWEVER - and this is the important part - you paid into this system through your work. These benefits exist specifically for situations like yours. A legitimate layoff is exactly what UI was designed for. Your boss chose to lay you off. The financial consequence of that decision, including any potential experience rating adjustment, is a normal cost of doing business. Please file your claim. You earned this.
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Carmen Ortiz
AuthorThis actually makes me feel better. So the fund is already there, I'm not like pulling money directly out of his pocket right now?
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Andre Rousseau
Exactly. You're drawing from a fund that's been built up over time from employer contributions. The indirect effect on his future tax rate is real but modest, especially for one employee at a small business. And again - he made the decision to lay you off. File your claim.
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Zoe Papadakis
yeah what they said. your boss was probably just trying to guilt you out of filing which is honestly kind of messed up
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Jamal Carter
Former HR person here. The experience rating system works like this: California EDD tracks each employer's 'reserve account.' When former employees collect UI benefits, charges are applied against that account. If the account balance drops low relative to the employer's taxable payroll, their UI tax rate increases at the next rate determination. For a small business, one claim can have a slightly larger percentage impact than for a large corporation. BUT - and I cannot stress this enough - your former employer almost certainly knew the layoff would trigger a UI claim. That's standard business planning. The comment your boss made is unfortunately a common pressure tactic some employers use to discourage former employees from claiming benefits they're legally entitled to. File immediately. Every week you delay is a week of potential benefits you may lose.
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Carmen Ortiz
AuthorWait, if I delay filing do I actually lose money? Like I can't go back and claim weeks I didn't file for?
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Jamal Carter
Correct. California EDD unemployment benefits are not retroactive beyond a very limited window. Your benefit year starts from when you file, not from when you were laid off. Delaying costs YOU money, not your employer. File as soon as possible at edd.ca.gov.
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AstroAdventurer
omg I didn't know this. I got laid off 3 weeks ago and haven't filed yet because of something similar, my manager said the same thing to me
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Mei Liu
File today if you haven't already!! Go to edd.ca.gov right now. You may have already missed some benefit weeks depending on California EDD's backdating rules.
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Liam O'Sullivan
I was in almost this exact situation about 8 months ago. Laid off from a small restaurant where the owner was like family to me practically. He pulled me aside before my last day and said something about how he 'hoped I wouldn't file' because it would raise his rates. I felt so guilty. Waited almost a month before my sister basically forced me to file. Ended up getting approved but lost almost 4 weeks of benefits I could have had. Meanwhile the owner hired two new people within two weeks of letting me go. File. Your. Claim. These benefits exist for a reason and you earned them by working and having taxes withheld.
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Carmen Ortiz
AuthorThe part about him hiring new people right after really puts it in perspective honestly.
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Liam O'Sullivan
Yeah. It wasn't personal, it was business. I should have treated it the same way from the start.
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Amara Chukwu
This happens all the time unfortunately. Small business owners sometimes don't realize or pretend not to realize that pressuring employees not to file is actually illegal in California.
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Giovanni Conti
Ok so genuine question because I've been trying to reach California EDD for two days about my own claim and cannot get through to anyone - does anyone know a way to actually talk to a human there? I've called the main number like 15 times and either get a busy signal or get disconnected after sitting on hold forever. My adjudication has been pending for almost 3 weeks and I'm freaking out.
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Mei Liu
Honestly the phone system is a nightmare. Someone in another thread mentioned a service called Claimyr that helps you get through to California EDD agents without sitting on hold for hours. Apparently you go to claimyr.com and they basically hold your place in line and call you back when an agent is available. There's also a video showing how it works at https://youtu.be/JmuwXR7HA10 - might be worth checking out if you're desperate to talk to someone about your adjudication.
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Giovanni Conti
Wait that actually exists?? Going to check that out right now because I genuinely cannot keep taking hours out of my workday (I'm doing gig work while waiting) to sit on hold.
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Zoe Papadakis
yeah claimyr is real, my cousin used it when her claim got stuck in adjudication. said it worked pretty well
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Fatima Al-Hashimi
Just want to add some actual numbers context here. California's UI tax rates for employers range from 1.5% to 6.2% of taxable wages depending on their experience rating. For a small business with say 5 employees at average wages, one unemployment claim from one laid-off employee might cause a rate adjustment of maybe 0.1-0.3 percentage points at the next annual determination - which translates to maybe a few hundred dollars per year at most. Compare that to the thousands of dollars in UI benefits you're entitled to. The math is not even close. Your financial need is real and immediate. Any impact to your former employer is delayed, indirect, and small.
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Carmen Ortiz
AuthorSeeing the actual numbers really helps. I was imagining this huge direct cost.
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Jamal Carter
Good breakdown. Also worth noting that employers can contest claims if they believe the separation wasn't a qualifying event. If it was a genuine layoff (no misconduct on your end), they really have no grounds to fight it and most don't bother.
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AstroAdventurer
UPDATE: I filed my California EDD claim like 30 minutes after reading the earlier comments in this thread. The online process through UI Online was actually pretty straightforward. Just answering honestly about why I was separated from my job. Already got my confirmation number. Now I guess I just wait?
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Andre Rousseau
Great job filing! Now make sure you certify for benefits every two weeks using UI Online or the EDD phone system. Even while your claim is processing, certification keeps your weeks in queue. Also start your job search log now - you'll need to document 3 job search activities per week typically.
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AstroAdventurer
Wait I have to do the job search stuff even while they're still deciding on my claim??
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Andre Rousseau
Yes, job search requirements begin from the first week you're eligible unless you're on standby status. California EDD can ask for your job search records going back to your claim start date. Keep a log with employer names, dates, and how you contacted them.
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NeonNova
yep learned this the hard way. got approved then had to scramble to document job searches I hadn't been keeping track of. keep records from day one
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Zoe Papadakis
honestly the whole experience rating thing is just employers trying to have it both ways. they want the ability to hire and fire at will but then guilt employees for using the benefits that exist specifically because of that dynamic. the WHOLE POINT of unemployment insurance is to support workers between jobs. your boss benefited from your labor, paid into the system (as required by law), and now that system is there for you. theres nothing morally complicated about this
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Carmen Ortiz
AuthorThis reframe actually helps a lot mentally. I've been tying myself in knots over something that is literally just how the system is designed to work.
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Jamal Carter
Agreed. And to be clear - it's not even like the employer is doing something generous by 'letting you' collect. UI tax is a mandatory payroll cost. They didn't choose to fund your potential benefits, it's required by California law.
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Dylan Campbell
THIS. also the employer gets to write off their UI taxes as a business expense so
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Mei Liu
For anyone else who lands on this thread with the same question - here's the complete picture. Employer costs for UI in California: 1) They pay mandatory FUTA federal unemployment tax (0.6% on first $7k of wages after credit). 2) They pay California SUTA/UI tax based on their experience rating. 3) When former employees collect, their reserve account gets charged. 4) If charges exceed contributions, their rate goes up at next annual determination. What this means practically: filing one claim as a legitimately laid-off worker has a minor, delayed, indirect effect on a former employer's tax rate. It does NOT mean money comes directly out of their pocket today. You are not stealing from your former boss. File immediately.
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Liam O'Sullivan
Saving this comment for anyone who asks me this question in the future. Perfect summary.
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Carmen Ortiz
AuthorThank you for this. Filing today.
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Amara Chukwu
something nobody's mentioned yet - it's actually illegal for an employer to discourage, threaten, or retaliate against an employee for filing an unemployment claim in California. if your boss made that comment in a way that felt like a threat or pressure, that could actually be a labor law issue. not saying you need to make a big deal out of it but worth knowing your rights
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Carmen Ortiz
AuthorHe wasn't super explicit about it, more just kind of hinted. But good to know.
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Jamal Carter
Correct. California Labor Code has protections around this. An employer can certainly contest a claim through proper California EDD channels if they believe it's not valid - that's their right. But pressuring an employee not to file is a different matter entirely.
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Fatima Al-Hashimi
The California Labor Commissioner's office handles retaliation complaints if anyone's employer actually does cross that line.
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Sofia Hernandez
I used Claimyr last week when my EDD claim had an issue and I absolutely could not get through on the phones. Spent like two days trying the regular number and getting nowhere. Claimyr connected me to an actual EDD agent within a couple hours. You just go to claimyr.com, watch the demo at https://youtu.be/JmuwXR7HA10 to see how it works, and they handle the hold queue for you. Got my issue resolved in one call. For anyone dealing with adjudication holds or claim problems they need to talk to someone about, it's genuinely useful.
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Giovanni Conti
I actually tried this after someone mentioned it upthread. Worked for me too - got a callback and spoke to an EDD rep about my adjudication. Still waiting on the final decision but at least I know what documents they need from me now.
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AstroAdventurer
Good to know this exists. Bookmarking in case my new claim hits any snags.
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Zoe Papadakis
the hold times at EDD are genuinely insane, anything that helps with that is welcome
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NeonNova
just gonna say - I've been through the California EDD system three times now (tech layoffs, it happens) and every single time I've had a former employer or manager make a comment like yours. It's almost a script at this point. First time I fell for it and waited. Cost me several hundred dollars in delayed benefits. Second and third time I filed immediately. You know what happened? Nothing. My former employers were fine. I was fine. Benefits kept me afloat between jobs. File. Do not let anyone guilt you out of benefits you are legally entitled to.
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Carmen Ortiz
AuthorThree times through the system and you still got benefits approved each time?
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NeonNova
Yep. Legitimate layoff = eligible for UI benefits. California EDD isn't trying to deny you, they just need to verify the separation was legit and not a quit or termination for misconduct.
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Liam O'Sullivan
Same experience here. The system works when the separation is genuine. Your former employer can contest but if it was a real layoff they typically don't bother or don't succeed.
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Dmitry Kuznetsov
can someone explain what standby status is? i see it mentioned sometimes and idk if i should be applying for that instead of regular unemployment. i got laid off from a seasonal job and my employer said there might be work again in a few months
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Andre Rousseau
Standby status is actually really relevant for your situation! If your employer expects to recall you within 60 days and you have a definite return-to-work date, you can request standby status on your UI claim. The big benefit is that you may be exempt from the regular job search requirements while on standby - you don't have to apply to 3 jobs per week. You still file weekly certifications and collect benefits, you just don't have to be actively job hunting since you have a recall coming.
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Dmitry Kuznetsov
Oh wow I didn't know this was an option. Do I request this when I first file or can I add it after?
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Andre Rousseau
You can request standby status when you file your initial claim OR you can update your claim status through UI Online. You'll need your employer to confirm the recall date. If they can't give you a specific date within 60 days, you may need to do regular job search requirements instead.
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Jamal Carter
Also note that standby status has to be renewed - California EDD will reassess it. If the recall date gets pushed back significantly, they may require you to meet standard job search requirements.
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Ava Thompson
THE EDD PHONE SYSTEM IS GENUINELY BROKEN AND I WILL DIE ON THIS HILL. called 47 times last Tuesday. 47. got through exactly zero times. the automated system just says high call volume and hangs up. how is anyone supposed to resolve issues with their claim when you literally cannot talk to anyone?? my adjudication has been pending 5 weeks and I don't even know what the holdup is
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Sofia Hernandez
Five weeks is a long time. Have you tried Claimyr? claimyr.com - it's a service that helps you actually get through to EDD without spending your whole day redialing. There's a walkthrough video at https://youtu.be/JmuwXR7HA10 . I know it sounds too good to be true but it genuinely helped me get through when I was in a similar situation.
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Ava Thompson
At this point I'll try anything. 5 weeks with no explanation is not okay. I have bills.
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Giovanni Conti
I was the person who asked about EDD contact earlier in this thread - I tried Claimyr and it worked. Not saying it's magic but I did actually talk to a live person which at that point felt like a miracle.
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Miguel Ramos
Quick clarifying question - when you do your weekly certification, do you have to report every single job search contact or just three? I've been doing more than three some weeks and writing them all down which is taking forever
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Mei Liu
California EDD requires a minimum of three job search activities per week. You can certainly do more and document more, but three is the minimum. Some people just log three to keep it simple. The key is that the contacts need to be genuine - actual applications, employer contacts, attending a job fair, using WorkSource, etc. Quality over quantity.
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Miguel Ramos
ok good because I've been stressing about logging every single thing. three is manageable.
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NeonNova
Also make sure you're recording the specific info EDD asks for - employer name, contact info, type of contact, date, position applied for. Vague entries like 'applied online somewhere' won't hold up if you ever get audited.
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Zainab Ibrahim
just came here to say yes employers do pay into unemployment and yes filing does affect them slightly but also your coworker who just got laid off the same day as you is probably filing so if you don't file you're just voluntarily giving up money while changing absolutely nothing about your former employer's situation lol
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Carmen Ortiz
Authorokay this is actually the most straightforward way I've heard it put and I feel dumb for not thinking about it this way
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Zoe Papadakis
lmaooo exactly. solidarity among laid off workers means everyone files
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StarSailor
I work in small business accounting and want to add some professional context here. Most small business owners I've worked with either don't fully understand how experience rating works or wildly overestimate the impact of a single UI claim on their tax rate. The reality is that UI tax adjustments happen annually, the change from one claim is marginal, and any rate change is temporary as the reserve account replenishes. More importantly, a business owner who laid off an employee should have already factored potential UI costs into the decision. If they didn't, that's a business planning failure on their part, not a moral obligation on yours.
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Carmen Ortiz
AuthorThe 'they should have factored this in already' point is really landing with me. This wasn't a surprise to him, it was a known cost of the layoff decision.
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StarSailor
Exactly. And I'd add - a business owner who tries to pressure former employees not to file is also potentially creating legal exposure for themselves. California employment law is not forgiving on retaliation.
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Jamal Carter
Solid perspective from the accounting side. The experience rating mechanism is well understood by any halfway competent small business accountant.
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Connor O'Brien
did anyone else notice that edd.ca.gov has been kind of slow lately or is it just me? tried to do my weekly cert this morning and kept getting timeout errors
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Mei Liu
Sunday mornings and Monday mornings tend to be the worst times to access UI Online because everyone is trying to certify at the same time. Try Tuesday through Thursday, and aim for early morning or later evening. The system gets overloaded.
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Connor O'Brien
ugh ok good to know. don't want to miss my certification window because the website is being slow
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Andre Rousseau
You have until Saturday midnight to certify for the prior week's benefits. Don't stress if Sunday morning is slow, you have all week. Just don't wait until the last minute.
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Carmen Ortiz
OP update: filed my claim this morning. The online process was way less scary than I expected. I answered all the questions honestly about the layoff, explained that it was an employer-initiated separation with no misconduct on my part, and submitted. Got a confirmation number and an expected processing timeframe. Also started my job search log today even though I don't have an official decision yet. Feeling a lot better about all of this. Thank you everyone for explaining the employer cost question - the guilt I felt was genuinely holding me back and this thread cleared it up completely.
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Andre Rousseau
So glad you filed! Keep up with your weekly certifications and job search documentation. Fingers crossed for a quick approval since it sounds like a clean layoff case.
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Liam O'Sullivan
Great outcome. Welcome to the other side of the guilt trip. You did the right thing.
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NeonNova
Good luck! Check UI Online periodically for any notices or requests for additional information. Responding quickly to any California EDD requests for info can speed up your processing.
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Jamal Carter
Perfect. And if you hit any snags during processing that require talking to an EDD rep, you now know options exist for actually getting through to someone. The system is frustrating but navigable.
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