COMPENSATION AND DISABILITY INSURANCE - UNEMPLOYMENT INSURANCE - 8535

Unemployment Insurance (UI) is an employer-paid program that provides partial income replacement when an employee becomes unemployed or has their hours reduced and meet all eligibility requirements as defined by the Employment Development Department (EDD).

In accordance with the Unemployment Insurance Code (UIC) sections 135 and 605, all service (with some exceptions) performed in the employment of a state agency/department is covered employment for UI compensation benefit purposes. The agencies/departments that employed the claimant during the previous 12-month period (the base period) are directly liable to the Unemployment Insurance Fund for all benefits paid.

The EDD’s Tax Branch processes the billing invoices to agencies/departments on a quarterly basis. Payment of these invoices is due within thirty (30) days of the invoice date. The amount due will be subject to a late payment penalty of 10 percent plus daily interest at the adjusted annual rate under UIC section 803(f). Payment will be accounted for as a "Personal Services" expenditure from the appropriation in which the payment is made.

Each agency/department head will designate staff that will administer UI in their respective agency/department.

The EDD’s Unemployment Insurance Branch should be the initial contact for all agencies/departments with questions regarding UI eligibility.