Unemployment Compensation Coverage in California

Chapter 3 of Part 1 of Division 1 of California’s Unemployment Insurance Code deals with scope or coverage for purposes of unemployment compensation. Article 1 covers employment. Section 601 defines the term “employment” to mean service, including service in interstate commerce, performed by an employee for wages or under any contract of hire, written or oral, express or implied.

Section 601.5 defines “employment” to include any service in an artistic or literary capacity performed by an individual pursuant to a collective bargaining agreement between an employer and a labor organization in the motion picture, radio or television industry where the employer has the right to control and direct the services to be performed and the individual is defined as an employee under the terms of the collective bargaining agreement.

Section 602 defines “employment” to include an individual’s entire service, performed within, or both within and without, the state if the service is localized in the state, or the service is not localized in any state, but some of the service is performed in the state and one additional criteria is met.

Section 603 provides that service is localized within a state if either the service is performed entirely within the state, or the service is performed both within and without the state, but the service performed without the state is incidental to the individual’s service within the state.

Section 603.5 defines the term “employment” to include an individual’s entire service, wherever performed within the United States or Canada, if the service is not covered under the unemployment compensation law of any other state or Canada, and the place from which the service is directed or controlled is in this state.

Section 604 defines “employment” to include an individual’s entire service, if that service is deemed performed in this State by virtue of an arrangement made pursuant to this division and does not include any service which by virtue of such an arrangement is deemed performed in another state.

Section 605 defines “employment” to include all service performed by an individual (including blind and otherwise disabled individuals) for any public entity or Indian tribe, if the service is excluded from “employment” under the Federal Unemployment Tax Act. The terms “public entity” and “Indian tribe” are defined.

Section 606 states that each individual employed to perform or to assist in performing the work of any individual employed by an employing unit is deemed to be employed by that employing unit for all the purposes of this division, whether or not he was hired or paid directly by the employing unit if the employing unit had actual or constructive knowledge of the work.

Section 606.5 provides that, whether an individual or entity is the employer of specific employees is determined pursuant to application state law. The following terms are defined: “temporary services employer” and “leasing employer.” There are specified rules related to individuals or entities contracting to supply an employee to perform services for a customer or client.

Section 607 provides that, if the services performed during one-half or more of any pay period by an employee for the person employing him constitute employment, all the services of the employee for that period are deemed to be employment. The term “pay period” is defined.

Section 608 defines “employment” to include service excluded from employment under the Federal Unemployment Tax Act solely by reason because it is service performed in the employ of a religious, charitable, educational, or other nonprofit organization.

Section 609 defines “employment” to include service performed for an employing unit on or in connection with an American vessel operating on navigable waters within or within and without the United States or on or in connection with an American aircraft operating within or within and without the United States, if the employing unit meets specified criteria.

Section 610 defines “employment” to include the service of an individual who is a citizen of the United States, performed outside the United States (except in Canada), after December 31, 1971, in the employ of an American employer or the equivalent provisions of another state’s unemployment compensation law, if three specified conditions are met.

Section 611 defines “employment” to include agricultural labor.