BILL ANALYSIS �
AB 274
Page 1
Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 274 (Garrick) - As Amended: April 27, 2011
SUBJECT : Unemployment insurance: time period for employers to
respond.
SUMMARY : Requires that employers be notified of the definition
of "good cause" to extend the time to answer a claim for
unemployment benefits. Specifically, this bill :
1)Requires the Employment Development Department (EDD), when
notifying an employer that an unemployment claim has been
filed, to provide them with a direct Internet website link to
the page that describes the circumstances that establish good
cause.
2)Specifies that the link is available at
http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm or its
successor website address.
EXISTING LAW :
1)Authorizes each employer affected by a claim of UI benefits,
within 10 days after the mailing of the notice of the UI
claim, to submit to EDD any facts within its possession
disclosing whether the claimant left the employer's employ
voluntarily and without good cause or left due to specified
circumstances including misconduct, or consumption of
alcoholic beverages or other intoxicants.
2)Requires each employer, after being notified by EDD of a UI
claim, to submit within 10 days any facts known that may
affect the claimant's eligibility for benefits, and allows for
an extension for good cause.
3)Provides that if, after the 10-day period, the employer
acquires knowledge of facts that could not reasonably have
been known within the period, the employer shall within 10
days of acquiring that knowledge submit the facts to EDD, and
the 10-day period may also be extended for good cause.
4)Provides that if, after a notice of determination of UI
AB 274
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eligibility, the employer acquires knowledge of facts that may
affect the eligibility of the UI claimant and those facts
could not have reasonably been known within the 10-day period,
the employer shall within 10 days of acquiring that knowledge
submit those facts to EDD, and the 10-day period may be
extended for good cause.
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Background. According to the author, the existing law
requires EDD to provide notice of the filing of an
unemployment claim to the claimant's last employing unit, and
requires the employer to submit, within 10 days after the
mailing of the notice, any facts that may affect the
claimant's eligibility for benefits. However, under many
circumstances, the author believes, the employer may not
actually be able to review the notice within 10 days.
The author states this bill is needed because if the employer is
required to travel for business, it is not clear what
circumstances constitute good cause to extend the 10-day
period to provide the required facts to EDD. This bill will
clarify the circumstances that constitute good cause to
request and obtain a time extension.
2)Suggested amendment regarding existing forms. Governmental
agencies are required to maintain adequate supplies of
existing forms that must be sent out as notices to the public
for a variety of reasons. EDD maintains and annually sends
large quantities of these forms to employers after people
submit claims for unemployment benefits. In order to avoid
new printing costs to the state, an amendment to the bill is
suggested to authorize EDD to use its supply of existing forms
before implementing the form modification required by this
bill.
REGISTERED SUPPORT / OPPOSITION :
Support
None received.
Opposition
AB 274
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None received.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086