What is sub pay for unemployment and how does it affect my California EDD benefits?

Okay this is actually really helpful. So it's not severance? My HR person kind of used the terms interchangeably which is what confused me.

They're completely different things. Severance is a lump sum or scheduled payout that California EDD typically counts as wages for the period it covers, which can delay when your benefits start. SUB pay is ongoing weekly payments from a qualified employer plan. The distinction matters a lot for your claim.

yeah my old union job had this, company topped us off every week, it was actually pretty decent while it lasted

Wait so I DO report it on my weekly certification? I was worried about that. How do I even describe it when the form asks about work or income?

Yes always report it. When certifying, if it asks whether you received any pay, you'd indicate yes and describe it as supplemental unemployment benefit payments from your employer. California EDD has seen these before. If they need clarification they'll contact you — do NOT just skip reporting it hoping they won't notice, that's how overpayment notices happen.

THIS. the overpayment thing is no joke. my cousin didn't report some payments and ended up with a huge notice months later. always report everything

I've been trying to call EDD for three days already lol. Going to check that out because I really need answers specific to my situation not just general info.

claimyr worked for me too when i had an adjudication issue, got through way faster than i ever did just calling myself

Isn't that just like a call center middleman thing? Seems unnecessary if you just call at the right time

Usually it comes out of a collective bargaining agreement — unions negotiate SUB plans as part of their contracts. The employer funds a trust and when layoffs happen workers draw from it. For the employer it can actually make sense financially and it helps them attract/retain workers knowing there's a safety net. It's not super common outside of manufacturing, automotive, and some government contractor industries.

ohhhh okay so its like a union perk basically. my job is non-union so i guess i wouldnt have this anyway

Not exclusively union though — some non-union employers offer it too, especially if they do seasonal layoffs regularly and want workers to come back

I don't think I disclosed it on my initial filing because I didn't understand what it was yet. Is it too late to add that info or will it cause a problem?

Call EDD as soon as possible and let them know. It's much better to proactively correct an omission than to have them discover it during adjudication. Document the call — write down the date, time, and what the agent said. If you can't get through by phone, send a message through Ask EDD on their website as a paper trail.

Agreed. Proactive disclosure always looks better than discovered omissions. California EDD agents deal with this kind of thing and as long as you're upfront it's generally not treated as fraud — just a corrected filing.

That's kind of terrifying honestly. What happens if two agents tell you two different things about how to report the SUB pay?

Then you're in documentation hell. I would personally go with whatever is more conservative (i.e., report more rather than less) and send a written message through Ask EDD so there's a paper trail of what you were told.

this is why i always ask agents for their ID number and write down everything they say, learned that the hard way

Okay I went back and looked at the paperwork and it does specifically say 'Supplemental Unemployment Benefit Plan' so it sounds like the real thing. There's even a plan number on the document.

Perfect — that plan number will be useful if EDD asks for verification. Keep that document somewhere safe.

good catch, terminology in these situations actually matters so much

It varies wildly depending on the employer's plan. Some plans are designed to bring you up to 60-70% of your working wage when combined with EDD benefits. Others are more modest. Your plan documents should spell out the weekly payment amount or the percentage formula they use.

That actually sounds like a decent setup compared to just straight EDD benefits alone. EDD alone barely covers rent anywhere in California lol

Yeah when my plant closed the SUB plan brought me up to about 65% of my regular pay combined with EDD. It helped a lot during the transition

Oh wow I had not even thought about that. So they're kind of linked? If one gets messed up both could stop?

Exactly. The whole point of a qualified SUB plan is that it's designed to supplement state unemployment benefits, so most plans require active EDD eligibility as a condition. Read your plan document carefully for the 'conditions for payment' section.

This is an important point. If your EDD claim goes into adjudication for any reason, contact your HR or the plan administrator right away to understand how that affects your SUB payments

Yes, California EDD job search requirements apply based on your EDD claim status, not based on any supplemental plan your employer has. You still need to complete your three job search activities per week, certify on time, and meet all the standard UI eligibility requirements. SUB pay is separate from those obligations.

okay good to know, i was wondering if there was some kind of exception

Yeah I'm definitely going to try that. I called the regular number again this morning and got cut off after 45 minutes on hold. Incredibly frustrating when you're already stressed about money.

45 minutes and then cutoff?? that is genuinely awful

The regular EDD phone line during peak times is brutal. The Claimyr approach saved me probably 10+ hours of hold time combined over my claim period

Wait this is actually really useful context. So it's not necessarily a 1-for-1 reduction even in the worst case scenario?

Right. California's partial benefit formula is more generous than a strict dollar-for-dollar offset. The 25% earnings disregard is meant to encourage partial work but it applies to certain other income types as well depending on EDD's classification.

Important caveat though — for specifically QUALIFIED SUB plans that meet the IRS criteria, EDD typically doesn't count them as wages at all under California UI code, so that formula wouldn't even apply. The partial benefit calculation matters more for non-qualified supplemental payments.

This is such a good point. My HR person clearly did not fully understand it herself which is why she was so vague.

Yeah and the EDD side is where it actually counts for your benefit payments. HR can describe the plan but they can't tell you how EDD will code it

this is true of basically every employer-related benefit question tbh, HR and EDD are working from completely different rulebooks

Standby status in California EDD is meant for workers who have a definite return-to-work date and are temporarily laid off. If someone is on standby they're exempt from the job search requirement but they still have to certify weekly and report all income including any supplemental payments. Whether SUB pay affects the standby determination specifically would depend on how EDD codes the payments. This is another case where calling EDD directly is the only way to get a clear answer for the specific situation.

yeah figured it was complicated, might have to get them to call EDD. might recommend that Claimyr thing since they mentioned having trouble getting through

standby + SUB pay is a niche enough combo that yeah only an actual agent can answer that properly

Same honestly. I came in here completely lost and now actually feel like I have a handle on what questions to ask.

the edd website has the info technically but finding it and understanding it without context is a whole different thing

This is really encouraging to hear. I'm hoping mine falls into the qualified category since the paperwork looks formal and official.

Look for language in the plan document referencing IRS PLR or DOL criteria for SUB plans, or any mention of it being structured as a tax-exempt trust. Those are good signs it's a qualified plan.

California UI Code 1252.1 is exactly the right reference — agents will recognize that citation if you mention it, shows you've done your homework

Yeah the whole 'different agents say different things' concern keeps coming up in this thread. Writing everything down seems like the universal advice.

Documentation is your only protection. Ask EDD for written confirmation when they make determinations, and if you disagree with how something is handled you always have the right to appeal within 30 days of a determination.

The 30 day appeal window is critical. Miss it and it gets much harder to contest a determination even if it's wrong.

Still in progress honestly — my claim just got approved this week and I haven't received any notice about the SUB pay being flagged. I did manage to get through to an EDD agent (used Claimyr since the regular line kept disconnecting me) and she confirmed my employer's plan looks like it should qualify under the standard criteria. She noted it on my claim file so hopefully that prevents any issues down the road. Still waiting to see first SUB payment from my employer but feeling a lot more confident about it.

That's a relief! Good luck hope it all goes smoothly

Glad you got through and got some clarity. The combination of getting an agent on the phone AND having written documentation is the best position to be in. Hope the payments come through without issues.