EDD reporting confusion: Do sick leave hours count towards UI gross wages calculation?

Yes, you should include ALL compensation on your UI application, including sick pay. The Total Gross Wages means everything that appeared on your W-2 from that employer during the past 18 months. So calculate based on the full 40 hours in your example (38 regular + 2 sick). EDD considers all forms of compensation when determining your benefit amount - regular wages, overtime, sick pay, vacation pay, holiday pay, bonuses, commissions, etc.

i did my claim last month and put everything that was on my w2 and it worked out fine 👍 dont overthink it

That's NOT entirely correct. Sick leave is handled differently depending on whether it was paid out upon separation or used during employment. If you USED sick leave during employment (your 2 hour example), then YES include it in your gross wages. If you were PAID OUT unused sick leave when you left the job, that's considered a termination payment and should NOT be included in your UI calculation. The EDD website explains this but it's buried in their documentation.

I included EVERYTHING on my application and then the EDD sent me a notice showing what quarters they were using to calculate my benefit amount. The notice showed different numbers than what I submitted but they gave me a decent weekly benefit amount. So I wouldn't stress too much about being 100% perfect.

When I filed last year I got so frustrated with the EDD phone lines - kept getting the "we're experiencing high call volume" message for DAYS when I had questions about my wages. Finally found this service called Claimyr (claimyr.com) that got me through to an EDD rep in about 20 minutes when I'd been trying for a week on my own. They have a demo video if you want to see how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. It was such a relief to actually talk to someone who could answer my specific questions about what to include.

BEWARE: I had a friend who DIDNT include his sick pay and vacation pay and the EDD flagged his claim for "income reporting fraud" and he had to go through a whole phone interview!!! Its not worth the risk just include ALL THE MONEY they paid you!!!

To directly answer your question: For UI reporting purposes, you should report wages based on 40 hours in your example (38 worked + 2 sick leave). But here's something important to understand - EDD will verify your wages with employer records anyway. They'll send you a "Notice of Unemployment Insurance Award" (DE 429Z) showing the wages they have on record for your base period. If there's a discrepancy, you can request a wage investigation. So while accuracy is important, don't stress too much about small differences. The system has built-in verification processes.

anyone know how long til the first payment? i keep hearing different things

Here's the technical explanation: The EDD uses a specific definition of "wages" from the California Unemployment Insurance Code (CUIC) Section 926-940. This definition includes ALL compensation for personal services, whether paid as salary, hourly pay, piece work, commissions, sick pay used during employment, etc. The only exceptions are certain specified payments like termination payouts of unused leave, certain pension distributions, and worker's comp. So for your specific example: Yes, include the 2 hours of sick leave with your 38 regular hours because it was USED during employment, not paid out upon termination.

Just wanted to add my experience - I filed my UI claim a few months ago and was also confused about what to include. I ended up calling the EDD helpline (after many attempts) and the rep specifically told me to include ALL forms of paid leave that I actually used during employment - sick leave, vacation days, personal days, etc. She said the key distinction is whether you USED the leave during your employment period or if it was PAID OUT as a lump sum when you left. Used during employment = include it. Paid out at termination = don't include it. Hope this helps clarify things!