BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: June 8, 2011 20011-2012 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 274
Author: Garrick
Version: As amended May 10, 2011
SUBJECT
Unemployment insurance benefits: claims: right to respond
KEY ISSUE
Should the Employment Development Department (EDD) be required
to inform employers of the circumstances that establish "good
cause" for an extension of the current 10 day period allowing
employers to submit information to EDD regarding a claim for
Unemployment Insurance (UI) benefits?
PURPOSE
To require that employers be notified of the definition of "good
cause" for an extension through materials directing them to
EDD's internet web site.
ANALYSIS
Existing law provides for the Unemployment Insurance (UI)
program administered by the Employment Development Department.
The UI program provides weekly unemployment insurance payments
for workers who lose their job through no fault of their own.
Eligibility for benefits requires that the claimant be able to
work, be seeking work, and be willing to accept a suitable job.
The UI program is a federal-state program, based on federal law,
but executed through state law.
Existing law provides several definitions for good cause under
which an employee can leave their place of employment and
qualify for benefits, and establishes procedures and presumption
for the administration of benefits. Individuals are disqualified
from receiving UI benefits if it is found they left work
voluntarily without good cause or are discharged for misconduct.
Existing law authorizes each employer affected by a claim of UI
benefits 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, consumption of alcoholic
beverages or other intoxicants. Existing law requires each
employer, after being notified by EDD of a UI claim, to submit
within 10 days, any facts that may affect the claimant's
eligibility for benefits. The period during which the employer
may submit these facts may be extended by the director for "good
cause."
This Bill would require that employers be notified of the
circumstances that establish "good cause" under which an
employer may get an extension from the director (from the
current 10 day period) to submit information to EDD regarding a
claim for UI benefits.
Specifically, this bill would:
1. Require the Employment Development Department, when
notifying an employer that a UI claim has been filed, to
provide the employer with a direct internet website link to
the page that describes the circumstances that establish
good cause for an extension of the 10 day period.
2. Specify that the link is available at (or its successor
website address, as updated):
http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm
3. Specify that EDD shall not be required to update its
standard forms, publications, and signs to comply with
these requirements until all of its existing materials for
this purpose are depleted.
Hearing Date: June 8, 2011 AB 274
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
COMMENTS
1. Need for this bill?
Current 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. Current law also
authorizes the director of EDD to extend for "good cause" the
period during which the employer may submit these facts. On
its internet website, the EDD states that to establish good
cause, the employer must present a substantial reason for the
delay and provides examples and criteria for the extension to
be granted.
This bill would clarify the circumstances that constitute good
cause to request and obtain a time extension by requiring that
the EDD provide employers with a direct internet website link
to the page that describes this criterion.
2. Suggested Amendment :
The term "good cause" is used in the Unemployment Insurance
Code to describe various issues, including 1) "good cause"
under which an employee can leave their place of employment
and still qualify for UI benefits, and 2) "good cause" under
which the 10 day period that employer have to submit facts
regarding a UI claim can be extended. The author may wish to
amend the bill per the following in order to clarify which
"good cause" definition the bill is referring to.
Section 1028.5 is added to the Unemployment Insurance Code
to read:
1028.5. (a) When notifying an employing unit that an
unemployment claim has been filed, the department shall
provide a direct Internet Web site link to the page that
describes what circumstances establish good cause for an
Hearing Date: June 8, 2011 AB 274
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
extension of the 10 day period during which the employer
may submit facts on the claim , which link is available at
http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm or its
successor Web site address, as it may be updated.
3. Proponent Arguments :
According to the author, currently when an unemployment claim
has been filed, the former employer is notified by the EDD and
the former employer has 10 days to respond with any
information that may affect the claimant's case. In some
instances, employers for small businesses travel and are not
even aware the EDD has contacted them until after the 10 day
response period has passed.
The author argues that the form provided by EDD to the former
employer states that an employer may be granted an extension
to respond past the original 10 days for "good cause," but
does not state what will constitute a "good cause" extension.
According to the author, it is very difficult for an employer
to locate what constitutes "good cause" for an extension.
This bill would eliminate the stress and anxiety small
business owners face when they realize they have missed the 10
day response period by requiring that the EDD provide access
to where the "good cause" definition on extension is defined
on the EDD website.
4. Opponent Arguments :
None received.
SUPPORT
None received
OPPOSITION
None received
Hearing Date: June 8, 2011 AB 274
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
Hearing Date: June 8, 2011 AB 274
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations