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EDD claim denied - employer in Texas but I work remotely in California

Hi everyone, I'm in a really confusing situation with my unemployment claim. I worked remotely from my home in Oakland for a tech company based in Austin, TX for the past 2 years before they laid me off last month. I filed for unemployment with California EDD since I live and work here, but after 3 weeks of silence, I finally got through to someone who told me my claim was denied because my employer hasn't paid into the California unemployment insurance system at all! Apparently since their headquarters is in Texas, they've only been paying unemployment taxes there, not in California. The EDD rep gave me two options: file an appeal in California or file a new claim in Texas. I'm honestly so confused and frustrated - has anyone dealt with something like this? A friend recommended I talk to an employment attorney who thinks I might have a case against my former employer for misclassifying my work location. Not sure if that's worth pursuing or if I should just try filing in Texas instead?

Declan Ramirez

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This is actually a common issue with remote work arrangements. Your employer should have been paying UI taxes in the state where you physically performed the work (California) regardless of where their HQ is located. Multi-state employers are supposed to register in each state where they have employees working. Your best option is to file an appeal with California EDD - you'll need to submit form DE 1000M explaining your work situation. Include documentation showing you performed work in California (home address on pay stubs, etc). Don't file in Texas as they'll likely deny you too since you didn't physically work there.

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A Man D Mortal

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Thank you so much for explaining this! I was so confused about why this was happening. I'll definitely file that appeal form. Do you know how long the appeal process usually takes? My savings are getting really low and I'm worried about making rent next month.

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Emma Morales

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omg i had the EXACT same thing happen!!! my company was in florida but i worked from san diego. took me like 2 months to get it sorted out but i DID get my benefits eventually. definitely appeal with california, dont mess with texas lol

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A Man D Mortal

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That's really reassuring to hear! Did you have to do anything special during the appeal process? I'm nervous about going through all this without any income coming in.

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This is a jurisdictional issue that happens ALL THE TIME with remote workers! The employer is 100% in the wrong here. They MUST pay UI taxes in the state where the employee physically performs work. I dealt with this myself and also with several clients (I'm a tax advisor). Here's what you need to do: 1. File the appeal with CA EDD immediately using form DE 1000M 2. Gather evidence of your work location (lease agreement, utility bills, etc) 3. Contact your employer's HR and inform them they need to register with CA EDD 4. Request they amend their quarterly tax filings to include CA The appeal process can take 4-6 weeks, but you should eventually be approved. The lawyer option is valid but expensive and time-consuming.

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A Man D Mortal

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Thank you for the detailed steps! I'll start gathering all these documents today. I'm just wondering how I'll manage financially while waiting for the appeal to be processed. 4-6 weeks is a really long time without income.

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Lucas Parker

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my cousin works in hr and says this happens alot. they should paid taxes in both states. def appeal!!!!

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Donna Cline

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Trying to reach EDD to sort this out is gonna be a nightmare, I bet you already know that. When I had a similar issue (my employer was based in Nevada), it took me 15-20 calls A DAY for a WEEK before I could talk to someone who actually knew what to do. I finally got through using Claimyr (claimyr.com) - it basically waits on hold for you and calls you back when an EDD rep is about to pick up. Saved me hours of frustration. There's a video showing how it works here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km With something complicated like your situation, you really need to talk to someone who can look at your specific case details.

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A Man D Mortal

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Thanks for the tip! I was literally about to start the call marathon tomorrow. I'll check out that service because the thought of being on hold for hours every day is making me anxious.

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Harper Collins

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I work for an employer with operations in multiple states, and I can tell you definitively that your employer was supposed to pay UI taxes in California. This is a common compliance issue. Your appeal has a very good chance of success, but be prepared for it to take some time. Regarding the lawsuit option - while you could potentially sue, I'd recommend exhausting the administrative remedies first (the appeal). The lawsuit would likely take much longer than the appeal process and cost you significantly more. Only consider this if your appeal is denied. One important thing: make sure to document ALL communications with both EDD and your former employer regarding this issue. These records will be crucial for your appeal.

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A Man D Mortal

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Thank you for the insider perspective. I'll definitely document everything moving forward. By the way, should I be certifying for benefits during this appeal process even though my initial claim was denied? I'm confused about how that works.

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Kelsey Hawkins

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This happend to me but reverse!!!! I worked in texas for california company and texas said no way jose and california said ur not here so no benefits!!!! I appealed and won after like 2 months. Worst time of my life tbh. The system is RIGGED against workers. The whole time my ex-employer was like 'not our problem' even tho THEY messed up the tax stuff! Be prepared to FIGHT for every penny!!!! Good luck!!!!

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A Man D Mortal

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Ugh that sounds awful, I'm sorry you went through that. Did you have any income during those 2 months or just had to survive on savings? I'm trying to figure out if I should be looking for temporary work while this gets sorted out.

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Declan Ramirez

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To answer your question about certifying during the appeal - YES, you should absolutely continue to certify for benefits every two weeks even though your claim is currently denied. If your appeal is successful (which seems likely based on what you've described), they will pay you retroactively for all the weeks you properly certified. If you don't certify, you won't receive those back payments even if you win your appeal. Regarding timeline - appeals are currently taking 4-6 weeks to process, but once approved, payment is usually released within 3-5 business days. If you're having financial difficulties while waiting, you might want to look into emergency assistance programs through local community organizations.

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A Man D Mortal

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That's really helpful to know, thank you! I'll make sure to keep certifying even though it feels pointless right now. I'll also look into those emergency assistance programs - do you happen to know any specific ones in the Oakland area?

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One more important point: Your employer is supposed to register with every state where they have employees physically working, even if it's just one remote employee. This is actually a significant compliance issue for them. When you file your appeal, make sure to clearly explain that you performed 100% of your work in California. The appeal judge will likely rule in your favor since this is a straightforward jurisdictional issue. If your employer contests the appeal (some do to avoid paying the back taxes), be prepared to provide evidence of your work location. This could include: - Your home office setup - California address on paystubs - Work correspondence showing your location - Any company communications acknowledging your remote work status The appeal hearing itself will likely be conducted by phone, and you'll have the opportunity to present your case directly to the judge.

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A Man D Mortal

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Thank you for all this detailed information! I've been taking screenshots of all my work emails with my California address in the signature and I found my remote work agreement that specifically mentions working from my Oakland address. Hopefully that will be enough evidence. This whole process is so stressful.

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