BILL ANALYSIS Ó Senate Committee on Labor and Industrial Relations Senator Ben Hueso, Chair Date of Hearing: April 24, 2014 2013-2014 Regular Session Consultant: Deanna D. Ping Fiscal:Yes Urgency: No Bill No: SB 1314 Author: Monning As Introduced/Amended: February 21, 2014 SUBJECT Unemployment insurance benefits: determination: appeals. KEY ISSUE Should the legislature extend the deadline for claimants and employers to appeal an unemployment benefits eligibility determination to 30 days? ANALYSIS Existing law states that that the Employment Development Department considers the facts submitted by an employer to make a determination as to the claimant's eligibility for unemployment compensation benefits. (Unemployment Insurance §1328) Existing law states that if after the notice of determination the employer acquires knowledge of facts that may affect the eligibility of the claimant, the employer shall submit the acquired facts within 10 days to the Employment Development Department. (Unemployment Insurance §1328) Existing law authorizes an appeal of a determination or reconsidered determination to an administrative law judge within 20 days from mailing or personal service of notice of the determination. (Unemployment Insurance §1328) Existing law requires an administrative law judge to affirm, reverse, modify, or set aside an appeal of a determination of eligibility for benefits and requires the administrative law judge to notify certain parties of the decision, as specified. (Unemployment Insurance §1334) Under existing law, the California Unemployment Insurance Appeals Board (CUIAB) is an independent administrative court system for workers and employers seeking to challenge decisions made by the Employment Development Department regarding benefits for unemployment insurance or disability insurance. Appeals are the first opportunity for all parties to present evidence before an Administrative Law Judge (ALJ) and have that ALJ decide the case. The ALJ's decision may be appealed to a seven-member Board appointed by the Governor and the Legislature. The Board's decision is final, unless overturned by the California Superior Court. Existing law further states that the administrative law judge's decision becomes final unless a further appeal is initiated to the California Unemployment Appeals Board within 20 days. (Unemployment Insurance §1334) Existing law states that the 20 day limitation may be extended for good cause. This Bill would extend the deadline for appeal to an administrative law judge and to the California Unemployment Insurance Appeals Board to 30 days. COMMENTS 1.Background on Unemployment Insurance (UI) UI is a federal-state program, created by federal law and administered under state and federal laws by state employees. It is financed by unemployment program tax contributions from employers. The UI program was established as a part of the New Deal under the Social Security Act of 1935. Through a system of payments Hearing Date: April 24, 2013 SB 1314 Consultant: Deanna D. Ping Page 2 Senate Committee on Labor and Industrial Relations made directly to unemployed workers, UI ensures that at least some of life's necessities, most notably food, shelter, and clothing can be met while an individual actively searches for new work. UI provides partial wage replacement to unemployed workers who must: Have received enough wages during the base period to establish a claim. Be totally or partially unemployed. Be unemployed through no fault of his/her own. Be physically able to work. Be available for work which means to be ready and willing to immediately accept work. Be actively looking for work. Meet eligibility requirements each week benefits are claimed. 2. Need for this bill? Under current law, a claimant or employer has 20 days to appeal an unemployment benefit eligibility determination. According to the author's office, constituents have expressed concern to the district office about the deadline due to needing more time before submitting an appeal to seek out an interpreter or legal counsel. SB 1314 would extend the deadline to 30 days for an appeal, thereby giving an additional 10 days for an eligibility determination appeal to be submitted. 2. Proponent Arguments : According to the author's office, the introduction of SB 1314 was prompted by constituent concerns with the deadline for submitting an eligibility determination appeal. The author's district office received calls from constituents needing more time before submitting an appeal due to their need to seek assistance from an interpreter or professional/legal counsel. The author contends that SB 1314 would extend the deadline to appeal an eligibility determination from 20 days to 30 days, which would provide claimants with more time in case they need Hearing Date: April 24, 2013 SB 1314 Consultant: Deanna D. Ping Page 3 Senate Committee on Labor and Industrial Relations additional help. Proponents, such as the California Association for Health Services at Home (CAHSAH), argue that SB 1314 would provide a much needed reprieve for employers by extending the time frame for appealing unemployment insurance determinations to 30 days. CAHSAH argues that the extra ten days provides more time for employers to provide a clear understanding of the causes for the employee's termination, which would especially benefit small businesses struggling to keep up with regulatory obligations. 3. Opponent Arguments : None on file. SUPPORT California Association for Health Services at Home OPPOSITION None on file. Hearing Date: April 24, 2013 SB 1314 Consultant: Deanna D. Ping Page 4 Senate Committee on Labor and Industrial Relations