BILL ANALYSIS �
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