Who funds unemployment benefits in California? EDD explained

Wait so my employer literally paid into a fund specifically so I could collect if I got laid off? That actually makes me feel way less weird about filing.

yep exactly. and employers who lay off more people end up paying higher tax rates into the fund. its called experience rating. so your old warehouse will actually see their unemployment tax rate go up because of layoffs like yours

So California actually had to borrow money at some point? Does that affect current claimants at all or is that just a state budget problem?

It's more of a state fiscal issue than something that directly impacts individual claimants. Your weekly benefit amount and eligibility are set by statute regardless of the trust fund balance. The state has to repay those federal loans eventually, which can affect employer tax rates down the line.

this is actually really useful info I never knew the feds funded the admin side separately. learned something today

$450 is the max?? I thought it was higher than that. I'm getting like $380 right now and I made decent money at the warehouse.

yeah the max has been debated a lot actually. some states pay way more. California's max hasn't kept pace with cost of living which is a whole separate frustration lol

wait i thought the max was higher?? i swear i read something about it being raised

omg I never realized SDI was different!! I see both deductions on my old pay stubs and always thought they were the same thing

Very common confusion. SDI (State Disability Insurance) is employee-funded and covers short-term disability and Paid Family Leave. UI (Unemployment Insurance) is employer-funded and covers job loss. Two completely separate programs under California EDD but totally different funding structures.

this thread is genuinely more educational than anything edd's website explained to me

I've been wanting to call EDD to ask about my payment schedule but keep dreading the hold times. Going to check that out thanks

seconded, claimyr is legit. used it twice and both times got a callback within a reasonable time instead of just getting the busy signal loop

good tip. edd phone lines are genuinely one of the more frustrating experiences I've had dealing with any government agency

Technically valid economic argument but from a legal and practical standpoint, in California the unemployment insurance tax is solely the employer's obligation. It doesn't appear on employee pay stubs and employees have zero legal liability for it. The incidence-of-tax debate is interesting academically but for someone filing a UI claim it's not really relevant to their situation.

fair point, wasn't trying to make OP feel bad just found it interesting

lol no worries I'm definitely still cashing my EDD checks regardless of the economic theory

Yes actually - this ties directly back to experience rating. If your claim is approved and you collect benefits, your former employer's 'experience rating' reflects that and their SUI tax rate can increase at their next rate notice. This is actually a big reason why some employers contest separations - it's partly financial for them. For your adjudication, 3 weeks is unfortunately pretty normal. Make sure you're still filing your weekly certifications every week even while in adjudication or you'll miss those payments once it resolves.

oh no I did NOT know to keep filing weekly claims during adjudication!! I stopped after week 2 thinking I had to wait for a decision first. Is it too late to certify for those weeks??

You can usually certify retroactively for missed weeks through UI Online - go to your claim summary and look for a 'certify for past weeks' option. Do it ASAP. This is such a common mistake and edd doesn't really warn you clearly about it.

Same honestly. The way my coworker said it made me feel like I was being a burden on individuals. It's insurance, not charity.

exactly!! and we would have gotten it whether we claimed or not so might as well use what's there

this is why there was so much chaos when COVID hit - the trust fund got completely overwhelmed and the whole system was built for maybe 300k claims at a time not millions at once

exactly, and California EDD's infrastructure (including their actual phone systems and IT) hadn't been updated in decades so it just completely collapsed under the volume

and somehow years later the phone lines are STILL basically impossible to get through on without using a service like claimyr. some things don't change lol

Voluntary quit without good cause = disqualified from UI benefits in California. EDD would find you ineligible. The funding structure doesn't change per se but you simply wouldn't be approved to draw from it. California EDD defines 'good cause' pretty narrowly - things like unsafe work conditions, significant pay cuts, or following a spouse relocation can qualify but just not liking the job usually doesn't.

yeah asking for a friend definitely... thanks for the real answer though

asking for a' friend lmaooo'we ve all been there. the good cause criteria is worth researching though there are more qualifying reasons than peoplerealize

26 weeks is the max normally? I thought it was more than that. I'm only 6 weeks in so hopefully the fund math works out for me lol

26 is the standard max yes. Extended benefits only kick in when statewide unemployment rates hit specific thresholds. In normal economic conditions you max out at 26 weeks from your claim date.

ugh 26 weeks goes fast when you're job searching in a tough market

Good point - this is actually why California's job search requirements (currently 3 employer contacts per week) exist alongside the federal framework. States can add requirements above the federal minimum but can't go below them. Federal oversight of the admin process means there are consistent baseline standards claimants can count on.

yes exactly! I found this out when I was trying to understand why some things about my claim seemed to track federal rules and others were clearly state-specific

3 contacts per week? I thought it was just 1 or 2. I need to recheck my records because I might be under-documenting

I checked out the video and it makes sense how it works. Going to try it this week to ask about my payment timeline.

does it work for adjudication status questions too or mainly payment stuff?

worked for me for adjudication - the agent was able to pull up my claim and tell me exactly what was causing the hold. that info alone was worth it because edd's online portal gives you basically zero detail on adjudication status

That framing actually makes a lot of sense and I'm going to use it the next time my coworker makes that comment lol

haha yeah 'it's employer-funded insurance that exists because your company laid people off' is a pretty solid mic drop response

saving this thread for future reference honestly

Nope! The weekly certification questions are entirely about your individual situation that week - did you work, did you earn money, are you able and available to work, are you actively looking for work, etc. None of the funding structure stuff affects how you certify. Just answer the questions honestly about your actual week and you're good.

ok phew thank you. I always get nervous certifying because I feel like I might accidentally say something wrong

the certification questions are actually pretty straightforward - the main traps people fall into are not reporting part-time earnings or forgetting to count a day they weren't available. as long as you answer accurately to your real situation you'll be fine

So glad you got an update!! That kind of information gap is so stressful. Fingers crossed for a good outcome on the adjudication.

thanks!! and yes the not-knowing was honestly worse than the actual issue. having a real human explain what was happening made a huge difference

this is exactly the situation claimyr is perfect for - adjudication status is almost impossible to track through the portal alone and getting a real agent on the line makes all the difference

This is the cleanest summary of everything in this thread. Thank you, genuinely. Coming in confused and leaving actually understanding how this works.

solid summary. bookmarking this thread

same this should be pinned somewhere