EDD eligibility for unpaid 2-week company holiday closure - can I file?
My employer just told us they're shutting down operations for almost 2 weeks during Christmas (Dec 20-Jan 2) and we won't be getting paid since we're a small tech startup (only 18 employees). They're calling it a 'company-wide holiday break' but it feels more like a temporary layoff to me. I have bills to pay and can't afford to miss nearly two weeks of wages without warning. Would I qualify for unemployment benefits during this period? Has anyone successfully applied for EDD benefits during a similar situation? I've never filed for unemployment before and don't know if temporary shutdowns like this qualify.
23 comments
Ethan Wilson
Yes, you can absolutely file for unemployment! This is considered a temporary layoff situation even if they're calling it a 'holiday break.' You're being sent home without pay through no fault of your own, which is exactly what UI benefits are designed for. Make sure you file your claim as soon as you know the exact dates of the shutdown. When you certify, report that you were temporarily laid off but are still attached to your employer and will be returning on a specific date. You will need to be available for work during this period (theoretically willing to take temp work if offered).
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Aisha Abdullah
•Thank you so much! That's a huge relief. Should I apply before the shutdown starts or wait until my first day without work? Also, do you know how long it typically takes to start receiving benefits once approved?
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NeonNova
i had somthing similar happen at my retail job last year during slow season. boss shut down for 10 days. applied for edd and got approved but it took like 3 weeks to get my first payment so apply asap dont wait
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Aisha Abdullah
•Oh wow, 3 weeks is a long time to wait. I'll definitely apply right away. Did you have any issues with your employer being notified? I'm a little worried about causing problems when I go back.
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Yuki Tanaka
The EDD system is BROKEN!!! I filed for a 2-week temporary layoff last year and they STILL haven't processed my claim correctly!!! Now they're saying I was overpaid and OWE THEM MONEY!! Be careful filing for such a short period - the bureaucracy is NOT designed for this!!!
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Carmen Diaz
•Not everyone has the same experience though. I filed for a 3-week construction shutdown and had zero issues. Each case is different. Maybe something else was going on with your claim?
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Andre Laurent
File your claim online through UI Online as soon as you know your last day of work. You can actually apply up to a week before your last day. The key details for your situation: 1. When asked about separation reason, select "Temporary Layoff" (not fired or quit) 2. Indicate you have a definite return date 3. Report any vacation/PTO they might pay out during this time 4. You must certify that you're able and available to work during this period For a small employer like yours, they might not have experience with this, so don't be surprised if they initially contest it. The EDD will make the final determination based on the facts. This type of temporary reduction in work is precisely what partial unemployment benefits cover.
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Aisha Abdullah
•This is super helpful - thank you! My employer is giving us zero vacation pay during this time (we're too small for much PTO anyway). Should I be concerned they might fight my claim? I really need the job when we return in January.
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Emily Jackson
my cousin works at a salon and they do this every year. she gets unemployment no problem. just make sure u answer all the questions honestly when u certify each week!!
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Liam Mendez
I had the exact same situation last December with my marketing firm! Filed for UI and got approved, but reaching EDD to confirm everything was a NIGHTMARE. After trying for days (literally 46 calls), I used Claimyr.com to get through to an actual EDD agent. They have a service that connects you with EDD without the endless redials - totally worth it for peace of mind. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The agent confirmed that company shutdowns like this are 100% covered under temporary layoff provisions, even for small businesses. Saved me so much stress!
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Yuki Tanaka
•Are they STILL pushing that service?! The EDD should be ACCESSIBLE TO EVERYONE without having to pay extra!!! Just keep calling or use the contact form on the website!!!
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Ethan Wilson
To answer your question about when to file - you can file up to a week before your last day of work. As for employer notification, yes, they will be notified because EDD will verify your employment status with them. But legally, they cannot retaliate against you for filing a legitimate UI claim. This is a standard procedure during temporary layoffs, and many businesses expect it.
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Aisha Abdullah
•That makes sense. I guess I'm overthinking it. My boss probably expects people to file since they're not paying us.
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NeonNova
remeber that first week is waiting period so u only get paid for the second week. so for a 2 week shutdown u only get 1 week of actual benefits.
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Andre Laurent
•That's an important point about the waiting period. For a shutdown from Dec 20-Jan 2, you'd serve your waiting period during the first week, then potentially receive benefits for the second week only. However, if you've already served a waiting period in the same benefit year (unlikely in your case, but worth mentioning), you wouldn't have to serve another one.
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Carmen Diaz
Just wondering - did your employer give you any advance notice about this shutdown? Because if they sprung this on you at the last minute, that could potentially affect other aspects of your employment rights beyond just UI benefits. California has some requirements about schedule changes and reductions in hours, though small businesses sometimes have exemptions.
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Aisha Abdullah
•They told us yesterday during the company meeting, so only about 3 weeks notice. I'm not sure what the legal requirements are for notice, but it definitely doesn't feel like enough time to plan financially for missing almost two weeks of pay.
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Emily Jackson
will ur company let u use vacation days???
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Aisha Abdullah
•Unfortunately no, they're making us save our limited PTO for next year. We only get 10 days total so it wouldn't cover the whole shutdown anyway.
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Andre Laurent
As a final piece of advice - make sure you set up your UI Online account completely and opt for the EDD debit card (Money Network) or direct deposit. Complete your profile entirely including adding your resume to CalJOBS (just a formality in your situation, but required). When you certify each week, answer honestly that you're still attached to your employer but temporarily laid off, available for work, and actively looking for work during this period. The system sometimes flags accounts for eligibility interviews if anything seems inconsistent.
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Aisha Abdullah
•Thank you! I'll definitely do all of that. Is direct deposit faster than the debit card? I'm hoping to get any benefits as quickly as possible.
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Ethan Wilson
Direct deposit is generally faster than waiting for the card to arrive in the mail for first-time claimants. The first payment to a new Money Network card can take 7-10 days to arrive by mail, whereas direct deposit typically processes within 24-48 hours after the payment is authorized. However, once you have the card, future payments to it are just as fast as direct deposit.
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Aisha Abdullah
•Perfect, I'll definitely set up direct deposit then. Thanks again for all your help!
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