The Computation of Unemployment Compensation in California

California’s Unemployment Insurance Code, in Division 1, Part 1, Chapter 5, Article 2, deals with the computation, including the amount and duration, of unemployment compensation benefits in this state. Section 1275 requires unemployment compensation benefit award computations to be based on wages paid in the base period. The term “base period” is defined.

Section 1276 defines the terms “benefit year” and “valid claim.”

Section 1277 specifies that, if the base period of a new claim includes wages which were paid prior to the effective date of, and not used in the computation of the award for, a previous valid claim, the new claim will only be valid if, during the 52-week period beginning with the effective date of the previous valid claim, either of the two specified conditions applies. The term “wages” is defined for this section.

Section 1277.1 provides that, if an individual has a subsequent new claim and the previous valid claim was filed, the new claim is only valid if, during the 52-week period beginning with the effective date of the previous claim, either of the two specified conditions applies. The term “wages” is defined for this section.

Section 1277.5 says that, in determining whether a new claim is valid, twice the amount that an individual was entitled to receive, or under any workers’ compensation law, employer’s liability law, or disability insurance law of any other state or of the federal government, during the 52-week period beginning with the effective date of the previous valid claim, will be considered as wages earned or paid to the individual during that 52-week period for purposes of meeting the eligibility requirements.

Section 1278 defines the phrase “wages for employment for employers.”

Section 1279 specifies each individual eligible under this chapter who is unemployed in any week is to be paid with respect to that week an unemployment compensation benefit in an amount equal to his or her weekly benefit amount less the smaller of two specified amounts.

Section 1279.5 says that an individual is “unemployed” in any week if the individual works less than his or her normal weekly hours of work for the individual’s regular employer, and the director finds that the regular employer has reduced or restricted the individual’s normal hours of work, or has rehired an individual previously laid off and reduced that individual’s normal hours of work from those previously worked, as the result of a plan by the regular employer to, in lieu of layoff, reduce employment and stabilize the work force by a program of sharing the work remaining after a reduction in total hours of work and a corresponding reduction in wages of at least 10%.

Section 1279.5 defines the terms “affected unit,” health and retirement benefits,” “work sharing compensation,” “work sharing plan,” “work sharing program,” “usual weekly hours of work,” “unemployed,” and “unemployment compensation.”

In addition, an employer wishing to participate in the work sharing program is required to submit a signed written work sharing plan to the director for approval. The director must develop an application form to request approval of a work sharing plan and an approval process that meets the requirements of this section. The application must include at least nine specified items. The director has to approve or disapprove a work sharing plan in writing by the close of business no later than 10 working days from the date the completed plan is received and communicate the decision to the employer. There are extensive, specified procedures to be followed.

Section 1279.6 authorizes the department to collaborate with the Governor’s Office of Business and Economic Development and the California Infrastructure and Economic Development Bank to develop and implement strategic outreach to increase participation by employers in the work sharing program and to provide information to employers about their ability to rehire former employees, based on federal guidance.

Section 1279.7 requires the director to accept a work sharing plan application submitted electronically by an employer wishing to participate in, or renew participation in, the work sharing program. The department must create a portal on its internet website for the provision and receipt of these applications. There are extensive rules for submitting work sharing plans electronically.

Section 1280 provides that, for new claims filed, an individual’s weekly benefit amount is 

$450.

Section 1281 specifies that an individual cannot establish a valid claim or a benefit year during which any benefits are payable unless during his or her base period, he or she has met either of the two specified conditions. Also, the maximum amount of unemployment compensation benefits payable to an individual during any one benefit year cannot exceed the lower of the two specified amounts.

Section 1282 provides that, if the remuneration of an individual is not based upon a fixed period or duration of time or if the individual’s wages are paid at irregular intervals or in the manner as not to extend regularly over the period of employment, the wages for any week or for any calendar quarter for the purpose of computing an individual’s right to unemployment compensation benefits are to be determined pursuant to authorized regulations. The regulations must, so far as possible, secure results reasonably similar to those which would prevail if the individual were paid his wages at regular intervals.