Violations of Unemployment Compensation under the UI Code

California’s Unemployment Insurance Code in Division 1, Part 1, Chapter 10, deals with violations of the Unemployment Compensation laws. Section 2101 provides that it is a violation of this chapter to willfully make a false statement or representation, to knowingly fail to disclose a material fact, or to use a false name, false social security number, or other false identification to obtain, increase, reduce, or defeat any benefit or payment, whether for the maker or for any other person, under any of the statutes administered by the department:

Section 2101.5 states it is a violation of this chapter to willfully make a false statement or representation or knowingly fail to disclose a material fact for the purpose of lowering or avoiding any contribution required of the maker or other person, or to avoid becoming or remaining subject to this division.

Section 2101.6 specifies that it is a violation of this chapter for any person or business entity to procure, counsel, advise, or coerce anyone to willfully make a false statement or representation, or to knowingly fail to disclose a material fact in order to lower or avoid any contribution or to avoid being or remaining subject to this division. The term “business entity” is defined.

Section 2102 says that it is a violation of this chapter for any person residing in this state to willfully make a false statement or representation or knowingly fail to disclose a material fact to obtain or increase benefits or payments under the provisions of the unemployment insurance law of any other state.

Section 2103 states it is a violation of this chapter for any employing unit or any officer or agent of an employing unit to make a greater deduction from the wages of a worker than the contribution required of a worker under this division, for the purpose of paying any contribution required under this division.

Section 2104 specifies it is a violation of this chapter for any employing unit or any officer or agent of an employing unit to willfully and unlawfully fail to appear, testify, or produce books, papers, and records, required.

Section 2105 says it is a violation of this chapter for any employing unit or any officer or agent of an employing unit, to willfully and unlawfully fail or neglect to make available required records for the inspection of the director or his authorized representatives at any reasonable time during business hours.

Section 2106 states it is a violation of this chapter for any employing unit, or any officer or agent of an employing unit, to willfully and unlawfully fail or neglect to furnish to the director reports required by him when necessary for the enforcement of this division.

Section 2107 provides it is a violation of this chapter for any employing unit, including a manager or managing member of a limited liability company, or any officer or agent of an employing unit or any individual to connive or conspire to aid an individual to obtain benefits to which he or she is not entitled by the willful withholding of information or by the willful failure to report any relevant information.

Section 2108 states it is a violation of this chapter for any person to willfully fail or refuse to make any contributions which are due under this division.

Section 2109 makes it a violation of this chapter for an executive officer, general manager, or any other person having charge of the affairs of a corporation, association, or limited liability company who willfully fails to register the corporation, association, or limited liability company as an employing unit, or willfully fails to submit contribution returns, earning reports, or other returns and reports required by this division.

Section 2110 makes it a violation of this chapter for any employing unit, any officer of a corporate or association employing unit, any manager or managing member of a limited liability company, or any other person having charge of the affairs of a corporate, association, or limited liability company employing unit, to knowingly withhold the deductions required by this division from remuneration paid to its workers.

Section 2110.3 makes it a violation of this chapter for any employing unit, any officer of a corporate or association employing unit, any manager or managing member of a limited liability company, or any other person having charge of the affairs of a corporate, association, or limited liability company employing unit, to knowingly undertake or agree to pay without deduction from remuneration paid to its workers the amount of any contributions to the Disability Fund required of the workers.

Section 2110.5 makes it a violation of this chapter for any employing unit, any officer of a corporate or association employing unit, any manager or managing member of a limited liability company, or any other person having charge of the affairs of a corporate, association, or limited liability company employing unit, to willfully fail to withhold in trust the deductions required by this division from remuneration paid to its workers.

Section 2110.7 makes it a violation of this chapter for any employing unit, any officer of a corporate or association employing unit, any manager or managing member of a limited liability company, or any other person having charge of the affairs of a corporate, association, or limited liability company employing unit, to knowingly undertake or agree to pay without deduction from remuneration paid to its workers the amount of any contributions to the Disability Fund required.

Section 2111 provides that, with specified exceptions, information obtained in the course of administration of this division is confidential and cannot be published or open to public inspection in any manner. 

Section 2112 provides that every person who willfully violates any provision of this division or any authorized regulation promulgated or published in accordance with this division, is in violation of this chapter.

Section 2113 allows the department to accept restitution or an acceptable arrangement for restitution, made voluntarily before the department files a criminal complaint, for overpayment of benefits from any person, who has not previously claimed any right under this section, who has not been convicted of an offense within three years preceding the service under this section of a written notice of intent to file a criminal complaint and who has willfully made a false statement or representation or knowingly failed to disclose a material fact to obtain or increase any benefit.

Section 2114 states that any individual who, with the intent to defraud, reports or registers a fictitious employer or fictitious employee, and fictitious wages, to the department in order to obtain benefits or increase any benefit or payment, whether for the maker or for any other person, is in violation of this chapter.

Section 2115 makes it a violation of this chapter for any employing unit or any officer or agent of an employing unit who, with the intent to defraud, falsely reports the amount of wages earned by an employee or who falsely reports the time period in which wages are earned by an employee for the purpose of obtaining or increasing any benefit amount for that employee.

Section 2116 makes it unlawful to falsely certify the medical condition of any person in order to obtain disability insurance benefits; knowingly present or cause to be presented any false or fraudulent written or oral material statement in support of any claim for disability insurance; or, knowingly solicit, receive, offer, pay, or accept any rebate, refund, commission, preference, patronage, dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for soliciting a claimant to apply for disability insurance. 

Section 2117 states that any person who, with or without intent to evade any requirement of this code or any lawful requirement of the department under this code, fails to file any return or report, or to supply any information required by this code or who, with or without like intent, makes, renders, signs, or verifies any false or fraudulent return, report, or statement, or supplies any false or fraudulent information, is liable for a civil penalty of not more than $1,000.

Section 2117.5 explains that any person who, within the time required by this code, willfully fails to file any return or report, or to supply any information with intent to evade any tax imposed by this code, or who, willfully and with like intent, makes, renders, signs, or verifies any false or fraudulent return, report, or statement or supplies any false or fraudulent information, is punishable by imprisonment in the county jail not to exceed one year, or in the state prison, or by a fine of not more than $20,000, or by both, at the discretion of the court.

Section 2118 states that any person or employer who, with or without intent to evade, fails to withhold, or fails to pay over any tax withheld, is guilty of a misdemeanor and, upon conviction, is fined an amount not to exceed $1,000.

Section 2118.5 explains that any person required by this code to collect, account for, and pay over any tax or amount required to be withheld who willfully fails to collect or truthfully account for and pay over the tax or amount shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction can be fined up to $20,000.

Section 2119 makes it a violation of this chapter for any person or employer required to furnish a statement who willfully furnishes a false or fraudulent statement or who willfully fails to furnish a statement in the manner, at the time, and showing the information required.

Section 2120 makes it a violation of this chapter for any individual required to supply information to his or her employer, who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld.

Section 2121 makes it a violation of this chapter for any person who willfully aids or assists in, or procures, counsels, advises, or coerces anyone in the preparation or presentation under, or in connection with any matter arising under, this code, of a return, report, affidavit, claim, or other document, that is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, report, affidavit, claim, or document.

Section 2122.5 requires any fine imposed by the court to be paid to the office of the prosecutor bringing the complaint, but if the case was referred to the prosecutor by the department, or some other governmental unit, one-half of the criminal fine is to be paid to that governmental unit.

Section 2123 provides the certificate of the department to the effect that a return or report has not been filed or that information has not been supplied is prima facie evidence that the return or report has not been filed or that the information has not been supplied.

Section 2124 specifies that the place of trial for offenses enumerated in this chapter is to be in the county of residence or principal place of business of the defendant or defendants, or in any county where the defendant or defendants were transacting business that resulted in the alleged offenses.

Section 2125 requires any action or proceeding to be instituted within four years after the discovery of the offense.

Section 2126 allows any person or employing unit convicted under this chapter to be charged the costs of investigation and prosecution at the discretion of the court.

Section 2127 authorizes the prosecutor, with the consent of the department, compromise any penalty for which he or she may bring an action under this chapter. The penalties provided by this chapter are additional to all other penalties provided.

Section 2128 states that any employer or agent of an employer who provides a wage statement or similar document to any undocumented worker or former undocumented worker at that person’s request for the purpose of documenting that person’s eligibility for legalization is not liable for any penalty or criminal or civil violation under this division relative to any undocumented worker or former undocumented worker based on any facts disclosed in the wage statement or similar document so provided.

Section 2129 defines the term “person.”