News & Information

CCH® UNEMPLOYMENT INSURANCE — 06/10/11

California amends its UI law on various subjects

The California Unemployment Insurance Code has been amended as follows:

Domestic partner. For purposes of eligibility for benefits and employer’s reserve accounts, "domestic partner" includes a person to whom domestic partnership, as described in Section 297 of the Family Code, is imminent.

Leaving due to domestic abuse. A claimant is considered eligible for benefits where he or she voluntarily left employment to protect his or her family, previously children, from domestic violence abuse.

Method of computation. Upon the filing of a new claim for benefits, the Department must promptly notify the claimant of the method of computation used to determine the amount of benefits payable.

Unclaimed warrants. Whenever any warrant drawn on an account in the Unemployment Fund, the Unemployment Administration Fund, the Contingent Fund or the Disability Fund by the Controller remains unclaimed after one year, previously three years, that amount reverts to the account and the fund from which the amount was payable.

Employee. The definition of "employee" includes any member of a limited liability company that is treated as a corporation for federal income tax purposes. However, the definition of "employee" does not include any member of a limited liability company that is treated as a partnership for federal income tax purposes.

Wages. "Wages" includes compensation that is deductible under Section 162 of the Internal Revenue Code and paid to a member of a limited liability company filing a federal corporate income tax return.

Levy enforcement. The director is authorized to serve a notice of levy by first class mail instead of certified mail. To implement the levy provisions, the Department is authorized to serve notice to an address for a bank or savings and loan association by magnetic media, electronic transmission or other electronic technology.

Place of trial. The place of trial for violations of unemployment insurance laws may be in the county of residence or principal place of business of the defendant or where the defendant was transacting the business that resulted in the alleged violation.

Disability benefits. Individuals are entitled to receive, for any day, if otherwise eligible, disability benefits reduced by the amount of a permanent disability indemnity if the permanent disability indemnity is less than the amount the individual would otherwise receive as disability under the law. The law excludes the maintenance allowance paid for vocational rehabilitation from that definition of "other benefits" for purposes of determining eligibility for disability benefits.

Overpayment to elected official. The director may, in addition to filing a civil action for the overpayment amount, initiate summary judgment proceedings against an elected official who received an overpayment of benefits and whose claim was based solely on income received as an elected official in order to recover those overpaid amounts.

Retraining benefits. The California Training Benefits Program is created to allow unemployed individuals who qualify for unemployment compensation benefits, extended duration benefits, federal-state extended benefits or any federally funded unemployment compensation benefits, and who apply for the program, to be considered automatically eligible for the program during a period of training or retraining. In addition, if training or retraining is not authorized under the provisions governing automatic eligibility for the benefits, a determination of potential eligibility for benefits may be issued to the unemployed individual if the director finds that specified criteria apply. The Department may convey information regarding benefit availability verbally, in written form or online.

Voluntary disability plan. Through December 31, 2014, the director may approve a voluntary disability plan that is administered by a small business third-party-administrator, as defined, that administers voluntary disability plans on behalf of its clients, subject to specified requirements.

Release of information. The director is authorized to release to the State Board of Equalization specified employment tax information in his or her possession that will assist in the administration of tax programs.

Temporary federal-state benefits. The payment of temporary federal-state unemployment compensation benefits are authorized under the federal Supplemental Appropriations Act of 2008, the federal Unemployment Compensation Extension Act of 2008 and the federal American Recovery and Reinvestment Act of 2009 to eligible individuals for weeks of unemployment beginning on or after February 1, 2009, and continuing until the week ending four weeks prior to the last week for which specified provisions providing for 100% federal sharing are authorized under the federal American Recovery and Reinvestment Act of 2009, if specified economic indicators trigger the payment of those benefits. The economic indicators triggering payment of benefits are revised for weeks of unemployment beginning on or after December 19, 2010, and continuing until a specified date authorized by federal law or until the week ending four weeks prior to the last week for which 100% federal sharing is authorized.