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?
28 comments


Declan Ramirez
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
•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
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
•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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Katherine Hunter
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
•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
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
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
•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
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
•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
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
•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
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
•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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Katherine Hunter
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
•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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CaptainAwesome
I'm dealing with something very similar right now! My employer is based in Portland but I've been working remotely from San Jose for the past year. When I got laid off last month, I filed with CA EDD and they're giving me the runaround too. It's so frustrating that companies can just ignore their tax obligations like this and leave us scrambling when we need benefits the most. Reading through all these responses is really helpful - I had no idea about the DE 1000M form or that I should keep certifying during an appeal. This whole remote work situation has created so many gray areas that seem to hurt workers more than help us. Thanks for posting about this, it's making me feel less alone in dealing with this mess!
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Ethan Taylor
•I'm so glad this thread is helping you too! It's really frustrating that we have to deal with our employers' compliance failures on top of losing our jobs. Definitely file that DE 1000M appeal form ASAP - from what everyone's saying here, it sounds like we both have strong cases since we physically worked in California. The fact that multiple people have gone through this exact situation and won their appeals is giving me hope. Keep me posted on how your case goes - maybe we can help each other navigate this mess!
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Marcelle Drum
I went through this exact same situation about 8 months ago! My company was headquartered in Denver but I worked remotely from Sacramento. The whole process was incredibly stressful, but I want to give you some hope - I eventually got all my benefits including back pay. Here's what worked for me: I filed the DE 1000M appeal immediately and gathered every piece of documentation I could find showing I worked in California. The key evidence that seemed to make the difference was my signed remote work agreement that specifically listed my California address as my work location, plus screenshots of company Slack messages where my manager referenced me being "in California." The appeal took about 5 weeks, but once it was approved, I got a lump sum payment for all the weeks I had been certifying. One thing I wish I had known earlier - you can also request expedited processing if you're facing financial hardship. There's a separate form for that. Also, don't let your former employer intimidate you if they try to contest the appeal. In my case, HR tried to argue that since I "could have worked from anywhere" it didn't count as California employment, but the judge shut that down immediately because my actual work location was what mattered, not theoretical possibilities. Stay strong - you've got a really solid case here and the law is definitely on your side!
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Mei Wong
•This is exactly what I needed to hear right now! Thank you so much for sharing your experience - it gives me real hope that this will work out. I'm definitely going to look into that expedited processing form since I'm already struggling financially. Can I ask what you did for income during those 5 weeks while waiting? I'm trying to decide if I should take on some gig work or if that might complicate my unemployment claim somehow.
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Dmitry Smirnov
I'm going through something very similar right now and this thread has been incredibly helpful! My employer is based in Phoenix but I've been working remotely from Los Angeles for 18 months. Got laid off two weeks ago and CA EDD initially denied my claim for the exact same reason - no UI taxes paid in California. After reading all these responses, I'm feeling much more confident about filing the DE 1000M appeal. I have my remote work agreement that specifically states my LA address as my work location, plus tons of work emails with my California address in the signature. One question for those who've been through this - did any of you have issues with your former employer trying to fight the appeal? My HR department has been pretty unresponsive when I've tried to contact them about this situation, and I'm worried they might contest it just to avoid dealing with the tax implications. Also huge thanks to everyone sharing their experiences here. It's such a relief to know this isn't some rare edge case and that there's actually a clear path forward. The stress of losing your job is bad enough without having to become an expert in multi-state employment law!
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Evelyn Kelly
•Hey Dmitry, I'm actually the OP who started this thread and I'm so glad it's helping others in similar situations! Regarding your question about employers fighting appeals - from what I've gathered from everyone's responses, some employers do contest but it rarely works in their favor since the law is pretty clear about where UI taxes should be paid. Your evidence sounds really solid with the remote work agreement and email signatures. I haven't heard back from my former employer's HR either, which is frustrating but probably typical. They're likely hoping this just goes away rather than dealing with their compliance failure. The good news is that you don't need their cooperation to win your appeal - the documentation you have should be more than enough. I'm planning to file my DE 1000M form this week after getting all this great advice. Maybe we can keep each other updated on how our cases progress? It's definitely helpful knowing we're not alone in this mess!
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Zara Shah
I'm a newcomer here but this thread is incredibly timely for me! I just got laid off from a remote position last week - my company is based in Seattle but I've been working from my home in San Francisco for the past 3 years. I haven't filed for unemployment yet but after reading all of this, I'm realizing I might run into the exact same issue since my employer probably only paid UI taxes in Washington. This is such valuable information - I had no idea this was even a thing that could happen! It's really eye-opening (and honestly pretty infuriating) to learn that so many companies are apparently not handling their multi-state tax obligations properly, leaving us to deal with the mess when we need benefits. I'm going to proactively gather all my documentation showing I worked in California before I even file my initial claim. Thank you all for sharing your experiences - this thread might have just saved me weeks of confusion and stress!
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Ayla Kumar
•Hi Zara! Welcome to what is unfortunately becoming a very common situation for remote workers. You're really smart to gather your documentation upfront - that will definitely save you time if you do run into this issue. Since you worked in SF for 3 years, you should have plenty of evidence showing your California work location. I'd recommend saving copies of your lease/mortgage, utility bills, any company communications mentioning your SF location, and definitely your remote work agreement if you have one. Also make sure your address is clearly shown on recent paystubs. It's so frustrating that we have to become experts in employment law just to get the benefits we've earned, but at least this community is here to help each other through it!
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AaliyahAli
This is such a helpful thread! I'm a newcomer to this community but unfortunately dealing with a similar situation. I was laid off from a remote tech job last month - company is headquartered in Denver but I've been working from my apartment in San Diego for almost 2 years. I filed with CA EDD three weeks ago and just got the dreaded call yesterday saying my claim was denied because my employer never registered or paid UI taxes in California. Reading through everyone's experiences here is giving me so much hope though! It sounds like the DE 1000M appeal form is definitely the way to go. I have my remote work agreement that specifically lists my San Diego address, plus I found old emails where my manager mentioned me being "our California team member" when introducing me to clients. One thing I'm curious about - for those who successfully appealed, did you also contact your former employer to let them know they needed to register with CA EDD? I'm debating whether to reach out to HR about this or just focus on my appeal. Part of me thinks they should know about their compliance issue, but another part of me worries about rocking the boat while my case is pending. Thanks to everyone for sharing their experiences - it's such a relief to know there's a clear path forward and that others have successfully navigated this mess!
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StardustSeeker
•Hey AaliyahAli! Welcome to the community - sorry you're dealing with this frustrating situation too, but you're definitely not alone! Your evidence sounds really strong, especially that email where your manager called you "our California team member" - that's exactly the kind of documentation that shows your work location was clearly established in California. Regarding contacting your former employer - from what I've read in other threads, it's kind of a mixed bag. Some people have had success getting their employer to voluntarily register and fix the issue, but others have been ignored or even had their employer contest the appeal out of spite. Since you already have solid documentation and the law is clearly on your side, you might want to just focus on the appeal first. If they contest it, the judge will likely educate them about their compliance obligations anyway! The DE 1000M form is definitely your best bet. Make sure to keep certifying for benefits while your appeal is pending - you'll get back pay for all those weeks if you win. Good luck with your case!
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Jamal Edwards
As someone new to this community, I'm amazed at how helpful and supportive everyone is being with this complex issue! I'm not dealing with this exact situation myself, but I work in HR for a tech company and I have to say - reading through all these experiences is really eye-opening about how many employers are apparently not handling their multi-state compliance correctly. For what it's worth, your employer was absolutely supposed to register and pay UI taxes in California from day one of your remote work arrangement. This isn't a gray area at all - it's a clear legal requirement that they failed to meet. The fact that so many people in this thread have dealt with identical situations and won their appeals shows this is unfortunately becoming a common problem as remote work has expanded. I really hope your DE 1000M appeal goes smoothly! Based on everything I'm reading here, you have a very strong case. It's frustrating that workers have to fix their employers' compliance failures just to access benefits they've rightfully earned. Wishing you the best of luck with the process!
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