Disability Compensation General Provisions in the UI Code

In Division 1, Part 2, Chapter 1, California’s Unemployment Insurance Code provides general provisions related to disability compensation. Section 2601 explains that the purpose of this law is to compensate in part for the wage loss sustained by any individual who is unable to work due to the employee’s own sickness or injury, the sickness or injury of a family member, or the birth, adoption, or foster care placement of a new child, and to reduce to a minimum the suffering caused by unemployment.

Section 2602 states that the provisions and definitions of Part 1 of this division apply to this area of law as well. In case of any conflict between the provisions of Part 1 and the provisions of this part, the provisions of this part prevail with respect to unemployment compensation disability benefits, and the provisions of Part 1 prevail with respect to unemployment compensation benefits.

Section 2603 provides that disability benefits paid are not to be charged against an employer’s account. Section 2604 states that, whenever the Director of Employment Development believes that a change in contributions rate or disability benefit amounts may become necessary to protect the solvency of the Disability Fund, the director is required to at once inform the Governor and the Legislature and make recommendations accordingly.

Section 2605 specifies that, if at any time the Secretary of Labor or other higher authority rules or determines that any section of this part is not in conformity with the provisions of federal law, then that section will be immediately inoperative.

Section 2606 defines the term “employment.” All service performed in the employ of a corporation, community chest, fund, or foundation, in connection with the operation of a health facility no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office and which is exempt from income tax.

Sections 2606.4 and 2606.5 provide additional definitions of “employment.” Section 3608 defines the term “disability benefit period.” Section 2609 defines the term “valid claim.” Section 2610 defines the term “disability base period.” Section 2611 defines the term “disability base period.” 

Section 2612 defines that, in determining the benefit rights of any person who cannot establish a valid claim because he or she is unemployed during the normal disability base period established, there will be excluded from the disability base period those quarters during which the person performed no services in employment for 60 days or more and was actively seeking work.

Section 2613 requires the Director of Employment Development to develop and maintain a program of education concerning disability insurance rights and benefits. The director is required to provide to each employer of employees subject to this part a notice informing workers of their disability insurance rights and benefits due to sickness, injury, or pregnancy.

In addition, the director is required to provide to each employer of employees subject to this part a notice informing workers of their disability insurance rights and benefits due to the employee’s own sickness, injury, or pregnancy, or the employee’s need to provide care for any sick or injured family member, or the employee’s need to bond with a minor child within the first year of the child’s birth or placement in connection with foster care or adoption.

The notice must instruct the employee to provide notification of the reason for taking leave in a manner consistent with company policy. The notice is to be given by every employer to each new employee hired, and to each employee leaving work due to pregnancy, nonoccupational sickness or injury, or the need to provide care for any sick or injured family member, or the need to bond with a minor child within the first year of the child’s birth or placement in connection with foster care or adoption.

Section 2614 requires the director to report to the Assembly Committee on Insurance, Assembly Committee on Labor and Employment, and the Senate Committee on Labor, Public Employment and Retirement by June 30 of each year on the department’s fraud deterrence and detection activities.

The department is required to assess the effectiveness of the department’s system of cross matching claims against information about incarcerated individuals. The assessment must include specified data.

Section 2615 requires the department to collect demographic data for individuals who claim disability benefits or family temporary disability insurance benefits, including race and ethnicity data and sexual orientation and gender identity data. The department has to implement the requirements of this section by July 1, 2026.

In addition, the department must collect race and ethnicity data using standardized federal race and ethnicity categories from the federal Office of Management and Budget’s “Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity.” The department is also required to collect subgroup data for race and ethnicity subgroups that aggregate to the federal Office of Management and Budget categories.

The department is required to adopt demographic data collection standards, procedures, and processes to implement this section. Also, the department has to develop and make available online a public-facing dashboard that publishes disaggregated demographic data pertaining to program participation by individuals and is updated on at least a quarterly basis.