What happens if my employer didn't pay into unemployment and I need to file a California EDD claim?

Oh thank you, I was afraid to even file because I thought they'd just reject it immediately. So I should go ahead and submit the claim even with this hanging over it?

Absolutely file right away. Your benefit year start date is based on when you file, not when you were laid off. Every day you delay could cost you money even if you're eventually approved. Just make sure you answer all questions honestly about your employment situation including the contractor classification issue.

This is correct. Also document everything — texts from your supervisor, your schedule, any employee handbook they gave you, photos of you in the uniform. All of that helps establish that you were actually an employee under the ABC test California uses.

Yeah they kind of admitted it when I asked about my W-2. They said I should have gotten a 1099 which... I definitely did not? I got W-2s both years I worked there. This is so confusing.

The W-2 vs 1099 thing is huge actually. If they issued you W-2s they were treating you as an employee for tax purposes which directly contradicts any claim that you were an independent contractor. Keep those W-2 forms safe, they're important evidence for your EDD case.

yeah exactly what they said ^ W-2 basically proves ur an employee lol ur employer is gonna have a bad time when EDD comes knocking

I've been trying to call EDD for 3 days and can't get through at all. This might be worth trying. Did they help you actually resolve the misclassification issue or just connect you to someone?

They just handle the connecting part — getting you to an actual EDD agent. But once I was actually talking to a real person I was able to explain my whole situation and they told me exactly what documents to submit and what to expect during adjudication. That call was honestly what got my claim moving.

seconding this, I used it too when my claim was stuck. the phone system at EDD is genuinely broken and sometimes you just need a real person

Good question. EDD can assess the employer for back UI taxes AND process your claim. The two things aren't necessarily linked in terms of timing. EDD has a whole audit and assessment process for employers who failed to properly pay into the system. Your claim adjudication moves on its own timeline based on whether EDD determines you meet eligibility requirements.

Oh that's actually really reassuring that those are separate processes. I was imagining OP having to wait like 6 months while EDD audits the entire company.

yeah same I thought it would all be tied together but that makes sense that they're separate tracks

THANK YOU for this. I did not know about the certifying while in adjudication thing. So I should be filing weekly certifications even if my claim hasn't been approved yet?

yes yes yes. definitely keep certifying. if you get approved they pay you retroactively for all the weeks you certified. if you don't certify those weeks you just lose that money entirely even if you get approved later.

This is exactly right and it's one of the most important things people miss. Certify every week or every two weeks (depending on your claim setup) no matter what. Missing certifications during adjudication is one of the most common and painful mistakes claimants make.

ugh I wish someone had told me this when my claim was in adjudication for 6 weeks last year. I thought I wasn't supposed to certify until it was resolved. lost 3 weeks of benefits because of that misunderstanding

This breakdown is really helpful. Can you tell me more about the ABC test? I want to make sure I understand what they'll be evaluating.

Sure. Under California's ABC test an employer has to prove ALL THREE of these things to classify you as a contractor: A) you work free from their control and direction, B) you do work outside their normal course of business, and C) you have an independently established trade or business. Since you had a supervisor telling you what to do daily (fails A), you were doing warehouse work which is their core business (fails B), and you weren't running your own business on the side (fails C), your employer fails all three. EDD is very likely to classify you as an employee.

wow ok so the employer basically has no case here. glad OP found this out now before doing anything that could hurt their claim

Actually they already emailed me asking me to sign an 'independent contractor agreement' AFTER I was laid off. That seems really suspicious now that you mention it.

DO NOT sign that. Seriously. That is them trying to protect themselves from EDD liability after the fact. A backdated or after-the-fact contractor agreement carries very little legal weight but signing it could complicate your claim. Talk to the EDD fraud hotline if they keep pressuring you.

This is important advice. The timing of them asking you to sign that agreement is actually evidence in your favor — it suggests they knew they were misclassifying you and are trying to cover it up. Document that email and do not delete it.

How long did it end up taking for yours to get resolved?

like 6 weeks total before I got my first payment. felt like forever but the back pay all came at once which was kind of nice I guess

Great question. Your weekly benefit amount is calculated based on your highest earning quarter during your base period — that's the 12 months before the quarter you filed in. EDD looks at your actual wages. If your employer was paying you but not remitting UI taxes, EDD can still verify your wages through other records. Your W-2s, pay stubs, and any other documentation of actual earnings will be used to calculate your benefit amount.

ok that makes sense. so OP should gather all their pay stubs from the last 18 months or so to document their actual earnings just in case

Yes exactly. Having organized documentation of every paycheck received is really helpful in these situations. The more paper trail showing actual wages paid, the better.

I've now tried calling EDD 4 times in the last 2 days and gotten either a busy signal or disconnected after 45 mins on hold. I'm going to look into this.

Yeah the phone system is genuinely one of the worst I've ever dealt with. Having a service handle the hold queue navigation was such a relief honestly. Good luck with your claim, sounds like you have a solid case.

I've heard of this service from a few people now. starting to think maybe I should have used it when I was fighting my own claim last year lol

This is incredibly helpful. I have most of these things. The email asking me to sign the contractor agreement after being laid off — is that actually useful evidence?

Potentially yes. It demonstrates the employer was aware of the misclassification issue and attempting to retroactively create documentation to counter it. An EDD adjudicator will likely find the timing suspicious. It's circumstantial but supportive of your position.

Also consider whether any of your coworkers were in the same situation. If multiple employees were misclassified the employer's case gets much weaker and EDD tends to take those investigations more seriously.

Yes, if the company closes you can still file and collect UI benefits as long as you meet the other eligibility requirements. The employer going out of business doesn't eliminate your right to benefits. EDD may have a harder time collecting back UI taxes from a defunct company but that's their problem to deal with, not yours.

oh wow ok good to know. will pass that along

You can still file now but California EDD generally backdates claims to the Sunday of the week you first became unemployed only if you can show good cause for the delay in filing. If significant time has passed you may lose some of the earlier weeks. File now regardless though — better to get partial benefits than nothing.

It's been about 3 months since I was laid off. That's probably too long to recover most of those weeks huh

You can request backdating and explain that you were misled about your contractor status and didn't know you were eligible to file. EDD may grant backdating in that situation. It's absolutely worth trying and explaining your circumstances honestly. Don't assume they'll say no without asking.

Yes, file now and include a written explanation of why you delayed. Employer misclassification and the employer telling you that you weren't eligible for benefits counts as potential good cause for late filing. You have nothing to lose by trying.

I didn't know that was an option. So there's basically three separate things I could potentially do — file with EDD, file a wage claim with Labor Commissioner, and file a complaint about misclassification?

Exactly. They're separate agencies and processes but they can reinforce each other. A lot of people only do the EDD claim and don't realize they may have additional remedies. Depending on how long the misclassification went on, the employer could owe you quite a bit between back wages, unpaid benefits contributions, and penalties.

honestly employers who do this stuff deserve every bit of what's coming. good luck OP

EDD is supposed to call you at the scheduled time but their phone system is unreliable and agents sometimes run late or get backed up. If they miss the scheduled call, check your UI Online message inbox because they sometimes leave messages there. You can also try calling back on the adjudication line specifically rather than the general number. If you miss the interview your claim doesn't automatically get denied — you can reschedule.

Ugh I wish I'd known that. I just waited by the phone for 2 hours then assumed I'd missed it and panicked. Cost me like another week of delay.

the EDD phone situation is genuinely one of the most stressful parts of the whole process. just the uncertainty of not knowing if they'll actually call or not

Will definitely update. I filed my claim yesterday through UI Online and answered honestly about the employment situation. Also started gathering all my pay stubs and documentation like everyone suggested. And I finally got through to an EDD agent using Claimyr — that call was so helpful. The agent confirmed my claim is in adjudication and told me to expect contact within 3-4 weeks. She said the W-2 situation is very helpful for my case. Feeling a lot more optimistic than when I posted this!

So glad to hear it! And good thinking on using Claimyr to actually get through — the horror stories about EDD phone wait times are no joke. Fingers crossed for a speedy approval and some back pay.

great update!! keep certifying every 2 weeks no matter what while it's in adjudication. rooting for you

Sounds like you're doing everything right. The agent's comments about the W-2 being helpful are a great sign. Document everything you discussed in that call too — date, time, what the agent said — just in case you need to reference it later.

This is really reassuring to hear from someone in HR. My former employer is not a large company — maybe 15 employees. Does the size of the company affect how aggressively EDD investigates?

Smaller companies actually get investigated pretty thoroughly because the violations tend to be more clear-cut — a large corp might have legitimate contractor relationships for some roles but a small warehouse operation using the same workers every day in a supervisory structure is pretty obviously an employment relationship. EDD field investigators know what to look for.

Also worth noting that if this employer is misclassifying you they're almost certainly misclassifying other workers too. You filing a claim might actually help your former coworkers get protection they don't even know they're entitled to.

A lot of people don't know. That's exactly what some unscrupulous employers are counting on — that workers won't know their rights or will assume they have none. California's worker protections are actually quite strong in this area.

gonna bookmark this thread. never know when something like this might come up

Good summary. I'd add: file complaints with multiple agencies if applicable (EDD, Labor Commissioner, LWDA) since they're separate processes and can all be done simultaneously. Don't assume filing one prevents you from filing the others.

Came here panicking and leaving with an actual action plan. Thank you all so much. This community is genuinely helpful.

Good luck OP. You have a solid case based on everything you've described. The system is frustrating to navigate but it exists precisely for situations like yours.