The State Worker

Since Gov. Arnold Schwarzenegger's order to add a third monthly furlough day to the calendar, state workers have been asking whether they now can receive unemployment benefits to offset the nearly 15 percent of income they're about to lose. The issue was stoked last week by an e-mail making the rounds that asserted the third furlough day will reduce workers' incomes enough to qualify.

But according to the Employment Development Department and the Department of Personnel Administration, that's not the case. The e-mail is flawed.

Here's an e-mailed explanation from Loree Levy at EDD:

The e-mail being circulated among state workers refers to two different UI programs. There is some information below about how both of these programs typically work. Both of them are employer initiated programs and according to information from the Department of Personnel Administration on behalf of the state, California state government is not participating in either one of them.

In addition, we've been asked what an additional day of furlough does to state worker eligibility for regular UI benefits. Here is some information for you on that as well.

Even with a three-day a month furlough, the earnings for a vast majority of full-time state workers would still be higher than what they would be entitled to in a weekly Unemployment Insurance (UI) benefit amount so their earnings would preclude them from collecting UI benefits.

It's possible that more of the state's contingent workforce could be eligible for UI benefits with the additional furlough depending on each individual's situation. In fact, some seasonal, part-time, and intermittent workers that work limited hours may already be collecting UI based on a reduced-hours schedule. It's impossible to estimate exactly how many workers could be collecting but it's very small compared to the overall number of state workers.

The text in the e-mail being circulated, and the link to the EDD form in that e-mail, are not the same. The text of the e-mail involves what we call the Work Sharing program of Unemployment Insurance. This program allows for the payment of UI benefits to employees whose wages and hours have been reduced by at least ten percent. It is an employer initiated program and is usually an ongoing agreement with workers to get the business through an established period of time. An employer petitions to participate. But as stated by DPA on its Web site, the state is not participating in this program.

The link in the e-mail is to a Notice of Reduced Earnings form. This program is also employer initiated, is usually more temporary in nature before employees return to work, and doesn't involve a reduction threshold. Traditionally this is something used by businesses like construction companies and food packing companies where inclement weather or a slowdown in harvesting can prevent work for a week or two. But the employees are expected to return to work. This too is something the state is not participating in.

Note: This is not EDD's call. It is conveying a policy, not setting it.

DPA says the same thing in less words on its furlough Q&A Web page. Click here and scroll to the bottom of the page to see what the administration's explanation.