Seeking California unemployment benefits? You may not need to look for work after all
Need to care for a child? Lose your job in a seasonal shutdown? You may NOT have to look for work in order to get unemployment benefits in California.
The state began requiring job searches for most claimants July 11. But the laws do allow for “good cause provisions,” so there is some flexibility.
“From the other states I have seen, this does seem to be more lenient,” said Jenna Gerry, senior staff attorney at the National Employment Law Project, which studies unemployment issues, of California’s policies.
She noted the state’s Employment Development Department, which manages the unemployment program, accounts for the different situation faced by Pandemic Unemployment Assistance claimants. They are people who traditionally did not qualify for unemployment insurance benefits, and the agency allows such beneficiaries alternatives to traditional job searches.
Experts said job search requirements usually are effective.
“I think it works because most people follow rules,” said Sen. Tim Kaine, D-Virginia, a member of the Senate Health, Education, Labor and Pensions Committee.
Studies have shown that such requirements are an effective prod to get people looking for work.
”Our research shows that the unemployed exert a high level of effort to find work. This is especially true for those receiving unemployment insurance benefits,” said .Jason Faberman, senior economist, and Ali Haider Ismail, former senior research assistant, in a study last year published by the Federal Reserve Bank of Chicago that does not necessarily reflect the bank’s view.
“Those who have exhausted their unemployment benefits search less intensely for work, but are also willing to accept work that pays considerably less than their prior job,” they found.
How carefully does EDD check?
EDD checks a claimant’s bi-weekly certifications for eligibility issues, as well as wage records provided by employers. Claimants have to sign and submit their bi-weekly certifications under penalty of perjury.
“If there are any eligibility issues that come up on the claim, EDD may contact the claimant or set up a determination interview to collect additional information from the claimant — including potential evidence of their job search efforts,” said EDD spokeswoman Loree Levy.
She said EDD representatives make an eligibility determination based on all information available. If the department determines it received false information, the claimant could face penalties.
There is concern that the search requirement has come too soon, as the number of Covid cases increases and unemployment remains at relatively high levels.
“At some point, it does make sense to reintroduce job search requirement. However, given that EDD still has a substantial backlog of unpaid claims and has struggled to implement new requirements, I worry this may not be the time to introduce another hurdle,” said Assemblyman David Chiu, D-San Francisco, who has been active on unemployment issues.
Despite an upbeat report Friday on the nation’s July unemployment, the job market still has not regained what it lost during the COVID-triggered recession last year..
The July unemployment rate was 5.4%, down from June’s 5.9% and 10.2% a year earlier, but still well above the pre-pandemic 3.5%. The number of unemployed people last month was 8.7 million, higher than the pre-pandemic 5.7 million.
Unemployment benefit questions
Here are some of the biggest California questions raised by consumers in contact with The Bee and on social media, and experts’ efforts to clarify:
▪ Caring for a child? EDD advises you don’t have to seek work “if you don’t have child care and you have explored all reasonable alternatives for finding child care.” But you still have to be available for work, and able to accept work if you get an offer.
▪ Dealing with a closed school or child care center? “If the reason you are unavailable for work is because your child’s school or care facility has been closed as a direct result of the COVID public health emergency, you may be eligible for Pandemic Unemployment Assistance benefits,” EDD says.
PUA is the federal program created in March 2020 to provide benefits to people who traditionally would not qualify, such as independent contractors.
The program ends at 11:59 p.m. Sept. 4, meaning that the week ending that day, a Saturday, is the last week people can qualify for PUA benefits.
▪ Different PUA requirements? A PUA claimant’s job search can include rebuilding their business by getting new clients, bidding on new contracts, and engaging in marketing efforts. EDD strongly urges people to keep a detailed record of these efforts.
For instance, an independent contractor seeking work could establish an account on an online platform to search for work. Or if you go to a training session, you can get documentation by having the person conducting the center sign something or take a picture.
▪ Need CalJOBS? CalJOBS is a state program that helps people find work. Someone seeking regular unemployment benefits and having a new claim starting July 11 or later must register for CalJOBS.
Regular benefits are those provided to people who worked for an employer that pays unemployment insurance taxes. Those taxes fund the regular benefits.
If you are seeking other types of benefits, you do not need to register. See below.
▪ Three work-search activities per week? Yes, if you are getting FED-ED benefits. If you contact a potential employer, you need to document the contact using the UI online page.
FED-ED is the federal program for those who have exhausted all their regular and Pandemic Emergency Unemployment Compensation extension benefits unemployment benefits during a period of high unemployment.
California will continue to pay up to 20 weeks of FED-ED benefits through August 7 and up to 13 weeks of benefits through September 4. The PEUC program ends Sept. 4.
▪ Exceptions to the FED-ED program job search, as well as regular UI and PEUC claims? There are several, including participation in state-approved training, like the California Training Benefits program or an employer-sponsored Work Sharing program.
You may not have to search for work if you have a certain promise of a job soon, or are on a temporary layoff because of bad weather and will be back at work within 30 days.
▪ Lost a job due to trade issues or seasonal variation? Also exempt from the job search are people whose labor market has been “virtually eliminated because of a trade dispute” or lost a job because of a seasonal shutdown “in your industry with little chance of finding other work,” EDD says.
▪ How does one know how to proceed? Anyone who is required to seek work in order to maintain eligibility for benefits will receive a notice from EDD with the specific requirements for their claim.
The state offers services to help people become re-employed as quickly as possible. You can learn more on EDD’s Returning to Work webpage.
This story was originally published August 9, 2021 at 5:00 AM.
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