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QuantumQuest

EDD eligibility after employer changed layoff to termination - can they deny my UI claim?

So my situation is super frustrating. I worked at this marketing agency for over 5 years with a spotless record. Last week, management announced they needed to reduce staff by 20% due to budget cuts. They called me into a meeting and told me I was being laid off with 9 others, and specifically said they 'wouldn't contest unemployment claims' since this was purely financial. They gave me until Feb 15th as my last day and said I'd get 2 weeks severance. But today (just 4 days later!!), I received an email saying they've 'reconsidered' and are now terminating me for cause - citing a day back in NOVEMBER when I arrived 35 minutes late because of a major accident on the freeway. I literally had ONE tardiness in 5+ years! This feels like such a blatant attempt to avoid their unemployment insurance rates going up. I'm freaking out because I have rent and car payments. Can EDD see through this obvious BS or am I going to be denied benefits? Has anyone dealt with an employer pulling this kind of last-minute switch from layoff to termination? What evidence should I gather before my last day?

Amina Sy

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This happens more than you'd think. The good news is that EDD makes their OWN determination about whether you were fired for misconduct - they don't just take the employer's word for it. One-time tardiness would almost NEVER qualify as misconduct under UI law. Make sure you: 1. Document everything - save that first conversation about layoffs if you have it in writing 2. In your EDD application, clearly explain it was a layoff first, then the employer changed their story 3. Get statements from coworkers who were in the same layoff meeting if possible You'll likely need to go through a phone interview with EDD where you can explain what happened. The burden of proof is on the employer to show you committed misconduct serious enough to deny benefits.

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QuantumQuest

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Thank you so much for this! I'm going to start gathering everything today. I have the original layoff email that clearly states "reduction in workforce" and makes no mention of performance issues. Do you think that plus the sudden switch 4 days later looks suspicious enough to EDD?

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the same thing happend too me last yr!!!! my boss said layoff then suddenly i was fired for "quality issues" that were never mentioned b4. EDD still approved me after the phone interview but took like 6 weeks to get first payment. just be honest when u file dont try to hide anything

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QuantumQuest

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This gives me some hope! Did you have any documentation or was it just your word against the employer's? I'm worried because everything was verbal in the layoff meeting except for the follow-up email.

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Ugh these companies are so shady! I've seen this happen at my old job too. They don't want their UI rates to go up so they make up these fake reasons. EDD isn't stupid though. A single tardiness from months ago doesn't qualify as misconduct - misconduct has to be deliberate disregard of the employer's interests. Did anyone else in the layoff get the same treatment? Or just you? That could be important to mention in your interview. Also save ALL communications including the termination email citing the tardiness. Be prepared for your claim to be held up for weeks though while they sort this out. EDD will need to do a phone interview with you AND your employer.

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QuantumQuest

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I just found out one other person got the same treatment! The rest are still being laid off. We were the two highest-paid employees in our department, which makes it even more suspicious. Does that strengthen my case?

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you NEED 2 call EDD on the phone right away and expain what happened!!!! i waited and it made everything take 4ever.

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Emma Davis

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I tried calling EDD about a similar situation last month and could not get through for DAYS. Kept getting the "too many callers" message. I finally used Claimyr (claimyr.com) to connect with an EDD rep. They got me through in like 15 minutes after I'd been trying for a week on my own. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Totally worth it for peace of mind and to get your questions answered directly by EDD.

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Amina Sy

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In response to your question about the two highest-paid employees getting this treatment - yes, that actually strengthens your case significantly. It demonstrates a pattern of financial motivation rather than genuine performance concerns. When you have your phone interview with EDD (which will be scheduled after your claim shows "pending"), be sure to mention: 1. The timing (only 4 days between layoff and termination) 2. That it affects the highest-paid employees 3. The minor nature of the alleged misconduct (one tardiness in 5 years) 4. The 3-month gap between the tardiness and it suddenly becoming termination-worthy The EDD interviewer will likely see right through this. Even if your employer contests the claim, you should win on appeal.

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QuantumQuest

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This is incredibly helpful. I've already started documenting everything, including getting a coworker to write down what was said in the layoff meeting. I'll make sure to emphasize all those points during the phone interview. Really appreciate everyone's input here.

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GalaxyGlider

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I work in HR (not for your company!) and this is EXACTLY why you should file for unemployment regardless of what they say. The employer is clearly trying to avoid the UI tax hit. Most states including CA have whats called "experience rating" where employers UI tax rates go up when former employees collect benefits. One bit of advice - when you file, don't say you were fired! Say you were laid off due to "lack of work" and then explain the situation in the comments section. If you select "fired" it automatically flags your claim for additional review.

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QuantumQuest

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That's great advice about how to file. Should I attach the original layoff email right away with my application or wait until they request documentation?

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THIS IS SO ILLEGAL!!!! they cant just change the reason after telling u it was a layoff!!! my cousin is a lawer and he says u should file a wrongful termination lawsuit too not just unemployment!!! they are LIEING to prevent u from getting benefits u deserve!!!!

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Amina Sy

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While this situation is definitely frustrating, California is an at-will employment state, so changing the reason for termination isn't necessarily illegal on its own. However, I do agree the OP should focus on the unemployment claim first and get that approved. If there's evidence of discrimination or retaliation for protected activities, then a wrongful termination claim might be worth exploring with an employment attorney.

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When you file your claim, make sure to be extremely detailed about the timeline. The fact that they specified they wouldn't contest unemployment and then changed their story 4 days later is going to look super suspicious to EDD. I went through something similar (though not identical) where my employer tried to challenge my UI claim with made-up performance issues. EDD still approved me after investigating. Just be prepared for your first payment to be delayed while they sort this out. Do you have any emails or texts from when the layoff was first announced that specifically mentioned downsizing or reduction in workforce?

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QuantumQuest

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Yes! I have the original company-wide email about the 20% reduction, plus the specific email to me about being part of the layoff. It clearly states "This decision is not a reflection of your performance" and mentions "organizational restructuring." Then 4 days later, suddenly I'm fired for being late once? It's ridiculous.

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Emma Davis

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Definitely go ahead and file your claim right away. Don't wait until your last day of work. You can mark the effective date as February 16th (day after your last day). One critical thing I haven't seen mentioned yet: when EDD schedules your eligibility phone interview, MAKE ABSOLUTELY SURE you're available to take that call. If you miss it, your claim will likely be denied automatically and you'll have to appeal, which adds months to the process. Since EDD is notoriously difficult to reach by phone, I'd recommend using a service like Claimyr (claimyr.com) to get through to an EDD rep before your interview if you have specific questions. They have a video demo: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. This way you can be fully prepared for the interview with all your documentation ready.

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QuantumQuest

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Thanks for the timeline advice! I'll definitely file right away but mark the effective date correctly. And I'll check out that service if I need to reach EDD - the last thing I want is to miss that interview call.

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my friend had this happen and he sued the company and won a huge settlement!!!! u should talk to a lawyer asap

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GalaxyGlider

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While consulting with an attorney is always an option, I'd recommend focusing on the unemployment claim first. Most employment attorneys offer free consultations, but lawsuits can take years and aren't guaranteed. For immediate financial stability, securing unemployment benefits should be the priority. The EDD process has built-in protections for situations exactly like this.

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This is textbook employer manipulation to avoid UI tax increases. I went through something very similar - employer said "budget cuts" then suddenly found "performance issues" right before my last day. Here's what worked for me: File your claim IMMEDIATELY and select "lack of work/layoff" as your reason. In the additional comments section, explain the timeline: "Initially told this was a layoff due to budget cuts on [date], employer changed to termination for cause on [date] citing single tardiness from November." The key evidence that helped my case: - Screenshots of ALL communications (the layoff email, termination email, any company announcements) - Timeline documentation showing the gap between the alleged incident and when it suddenly became "serious enough" for termination - Witness statements from coworkers who heard the original layoff announcement EDD investigators are trained to spot these tactics. The 4-day turnaround from "we won't contest your claim" to "fired for cause" is a huge red flag. Combined with your 5+ year clean record and the fact that only high-paid employees got this treatment, you have a strong case. Stay calm during your phone interview and stick to the facts. You've got this!

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Miguel Ramos

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This is exactly the roadmap I needed! Thank you for breaking down the specific steps and evidence collection. I feel much more confident now knowing that EDD investigators are familiar with these employer tactics. I'm going to file today and use your exact wording in the comments section. Really appreciate you sharing your experience - it helps to know others have successfully navigated this situation.

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I'm dealing with something very similar right now and this thread has been incredibly helpful. My employer laid me off two weeks ago citing "business restructuring" and now they're trying to say it was for performance issues that were never documented or mentioned during my 3+ years there. From what I'm reading here, it sounds like EDD is used to seeing these employer tactics. The advice about documenting everything and being specific about the timeline in your application seems crucial. I'm also going to look into that Claimyr service since getting through to EDD by phone seems nearly impossible on your own. @QuantumQuest - the fact that they specifically told you they wouldn't contest your claim and then changed their story 4 days later is going to work heavily in your favor. That kind of flip-flopping shows their true motivation. You should definitely mention that exact quote during your phone interview. Keep us updated on how it goes! This community has been a lifeline for navigating these situations.

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