BILL NUMBER: SB 1661 ENROLLED BILL TEXT PASSED THE SENATE AUGUST 21, 2008 PASSED THE ASSEMBLY AUGUST 18, 2008 AMENDED IN ASSEMBLY AUGUST 15, 2008 INTRODUCED BY Senator Kuehl FEBRUARY 22, 2008 An act to amend Sections 1030, 1032, and 1256 of the Unemployment Insurance Code, relating to unemployment compensation, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 1661, Kuehl. Unemployment compensation: family leave: good cause. Under existing law, the family temporary disability insurance (FTDI) program provides up to 6 weeks of wage replacement benefits to workers who take time off work to care for a seriously ill family member, as defined, or to bond with a new child, on and after July 1, 2004. Existing law provides that an individual who leaves his or her work voluntarily or without good cause is disqualified from receiving unemployment benefits. Existing law further defines good cause for these purposes, and establishes procedures and presumptions for the administration of benefits. This bill would provide that an individual shall be deemed to have left his or her most recent work with good cause if the individual's discharge or quitting from an employer was the result of the individual taking a leave to bond with a minor child under the family temporary disability insurance program, and the individual is subsequently found eligible for benefits under that program. This bill also would make conforming changes relating to notices and reconsideration of rulings, as provided. By increasing the pool of potential recipients of payments from the Unemployment Fund, a continuously appropriated special fund, this bill would result in an appropriation. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1030 of the Unemployment Insurance Code is amended to read: 1030. (a) Any employer who is entitled under Section 1327 to receive notice of the filing of a new or additional claim may, within 10 days after mailing of the notice, submit to the department any facts within its possession disclosing whether the claimant left the employer's employ voluntarily and without good cause or left under one of the following circumstances: (1) The claimant was discharged from the employment for misconduct connected with his or her work. (2) The claimant's discharge or quitting from his or her most recent employer was the result of an irresistible compulsion to use or consume intoxicants including alcoholic beverages. (3) The claimant was a student employed on a temporary basis and whose employment began within, and ended with his or her leaving to return to school at the close of, his or her vacation period. (4) The claimant left the employer's employ to accompany his or her spouse or domestic partner to or join her or him at a place from which it is impractical to commute to the employment, to which a transfer of the claimant by the employer is not available. (5) The claimant left the employer's employ to protect his or her children or himself or herself from domestic violence abuse. (6) The claimant's discharge or quitting from his or her most recent employer was the result of the claimant taking a leave to bond with a minor child under the family temporary disability insurance program established in Chapter 7 (commencing with Section 3300) of Part 2, and the claimant was subsequently found eligible for benefits under that program. The period during which the employer may submit these facts may be extended by the director for good cause. (b) Any base period employer that is not entitled under Section 1327 to receive notice of the filing of a new or additional claim and is entitled under Section 1329 to receive notice of computation may, within 15 days after mailing of the notice of computation, submit to the department any facts within its possession disclosing whether the claimant left the employer's employ voluntarily and without good cause or left under one of the following circumstances: (1) The claimant was discharged from the employment for misconduct connected with his or her work. (2) The claimant was a student employed on a temporary basis and whose employment began within, and ended with his or her leaving to return to school at the close of, his or her vacation period. (3) The claimant left the employer's employ to accompany his or her spouse or domestic partner to or join her or him at a place from which it is impractical to commute to the employment, to which a transfer of the claimant by the employer is not available. (4) The claimant left the employer's employ to protect his or her children or himself or herself from domestic violence abuse. (5) The claimant's discharge or quitting from his or her most recent employer was the result of the claimant taking a leave to bond with a minor child under the family temporary disability insurance program established in Chapter 7 (commencing with Section 3300) of Part 2, and the claimant was subsequently found eligible for benefits under that program. The period during which the employer may submit these facts may be extended by the director for good cause. (c) The department shall consider these facts together with any information in its possession. If the employer is entitled to a ruling under subdivision (b) or to a determination under Section 1328, the department shall promptly notify the employer of its ruling as to the cause of the termination of the claimant's employment. The employer may appeal from a ruling or reconsidered ruling to an administrative law judge within 20 days after mailing or personal service of notice of the ruling or reconsidered ruling. The 20-day period may be extended for good cause, which includes, but is not limited to, mistake, inadvertence, surprise, or excusable neglect. The director is an interested party to any appeal. The department may for good cause reconsider any ruling or reconsidered ruling within either five days after the date an appeal to an administrative law judge is filed or, if no appeal is filed, within 20 days after mailing or personal service of notice of the ruling or reconsidered ruling. However, a ruling or reconsidered ruling that relates to a determination that is reconsidered pursuant to subdivision (a) of Section 1332 may also be reconsidered by the department within the time provided for reconsideration of that determination. (d) For purposes of this section only, if the claimant voluntarily leaves the employer's employ without notification to the employer of the reasons for the leaving, and if the employer submits all of the facts within its possession concerning the leaving within the applicable time period referred to in this section, the leaving is presumed to be without good cause. (e) An individual whose employment is terminated under the compulsory retirement provisions of a collective bargaining agreement to which the employer is a party shall not be deemed to have voluntarily left his or her employment without good cause. SEC. 2. Section 1032 of the Unemployment Insurance Code is amended to read: 1032. If it is ruled under Section 1030 or 1328 that the claimant left the employer's employ voluntarily and without good cause, or left under one of the following circumstances, benefits paid to the claimant subsequent to the termination of employment that are based upon wages earned from the employer prior to the date of the termination of employment shall not be charged to the account of the employer, except as provided by Section 1026, unless the employer failed to furnish the information specified in Section 1030 within the time limit prescribed in that section or unless that ruling is reversed by a reconsidered ruling: (a) The claimant was discharged by reason of misconduct connected with his or her work. (b) The claimant was a student employed on a temporary basis and whose employment began within, and ended with his or her leaving to return to school at the close of, his or her vacation period. (c) The claimant left the employer's employ to accompany his or her spouse or domestic partner to or join her or him at a place from which it is impractical to commute to the employment, to which a transfer of the claimant by the employer is not available. (d) The claimant left the employer's employ to protect his or her children or himself or herself from domestic violence abuse. (e) The claimant left the employer's employ to take a substantially better job. (f) The claimant's discharge or quitting from his or her most recent employer was the result of an irresistible compulsion to use or consume intoxicants including alcoholic beverages. (g) The claimant's discharge or quitting from his or her most recent employer was the result of the claimant taking a leave to bond with a minor child under the family temporary disability insurance program established in Chapter 7 (commencing with Section 3300) of Part 2, and the claimant was subsequently found eligible for benefits under that program. For purposes of this section and Section 1030 "spouse" includes a person to whom marriage is imminent. SEC. 3. Section 1256 of the Unemployment Insurance Code is amended to read: 1256. (a) An individual is disqualified for unemployment compensation benefits if the director finds that he or she left his or her most recent work voluntarily without good cause or that he or she has been discharged for misconduct connected with his or her most recent work. (b) An individual is presumed to have been discharged for reasons other than misconduct in connection with his or her work and not to have voluntarily left his or her work without good cause unless his or her employer has given written notice to the contrary to the department as provided in Section 1327, setting forth facts sufficient to overcome the presumption. The presumption provided by this section is rebuttable. (c) An individual whose employment is terminated under the compulsory retirement provisions of a collective bargaining agreement to which the employer is a party, shall not be deemed to have left his or her work without good cause. (d) An individual may be deemed to have left his or her most recent work with good cause if he or she leaves employment to accompany his or her spouse or domestic partner to a place from which it is impractical to commute to the employment. For purposes of this section, "spouse" includes a person to whom marriage is imminent. (e) An individual may be deemed to have left his or her most recent work with good cause if he or she leaves employment to protect his or her children, or himself or herself, from domestic violence abuse. (f) An individual shall be deemed to have left his or her most recent work with good cause if he or she elects to be laid off in place of an employee with less seniority pursuant to a provision in a collective bargaining agreement that provides that an employee with more seniority may elect to be laid off in place of an employee with less seniority when the employer has decided to lay off employees. (g) An individual shall not be considered discharged for misconduct connected with his or her most recent work if the individual's employment is terminated as a result of the individual taking a leave under the family temporary disability insurance program established in Chapter 7 (commencing with Section 3300) of Part 2, and the individual is subsequently found eligible for benefits under that program. (h) An individual may be deemed to have left his or her most recent work with good cause if he or she leaves employment to take a leave under the family temporary disability insurance program established in Chapter 7 (commencing with Section 3300) of Part 2, and the individual is subsequently found eligible for benefits under that program.