Article 1 - Employment Development Department

California Unemployment Insurance Code — §§ 301-340

Sections (40)

Amended by Stats. 2002, Ch. 859, Sec. 13. Effective January 1, 2003.

There is in the Labor and Workforce Development Agency the Employment Development Department, which is vested with the duties, purposes, responsibilities, and jurisdiction heretofore exercised by the State Department of Benefit Payments or the California Health and Human Services Agency with respect to job creation activities. The Employment Development Department shall be administered by an executive officer known as the Director of Employment Development who is vested with the duties, purposes, responsibilities, and jurisdiction heretofore exercised by the Director of Benefit Payments with respect to the following functions:

(a)Job creation activities.

(b)Making manual computations and making or denying recomputations of the amount and duration of benefits.

(c)Determination of contribution rates and the administration and collection of contributions, penalties and interest, including but not limited to filing and releasing liens.

(d)Establishment, administration, and transfer of reserve accounts.

(e)Making assessments and the administration of credits and refunds.

(f)Approving elections for coverage or for financing unemployment and disability insurance coverage.

§ 301.6

Amended by Stats. 1977, Ch. 1252.

The Employment Development Department shall have the possession and control of all records, papers, offices, equipment, supplies, moneys, appropriations, land, and other property real or personal held for the benefit or use of the State Department of Benefit Payments in the performance of the duties, powers, purposes, responsibilities, and jurisdiction that are vested in the Employment Development Department by Section 301.

§ 301.7

Amended by Stats. 1977, Ch. 1252.

All officers and employees of the State Department of Benefit Payments who, on the operative date of the statute amending this section at the 1977 portion of the 1977–78 Regular Session of the Legislature, are serving in the state civil service, other than as temporary employees, and engaged in the performance of a function vested in the Employment Development Department by Section 301 shall be transferred to the Employment Development Department. The status, positions, and rights of such persons shall not be affected by the transfer and shall be retained by them as officers and employees of the Employment Development Department pursuant to the State Civil Service Act, except as to positions exempt from civil service.

§ 302

Amended by Stats. 1973, Ch. 1212, Sec. 84.

The Director of Employment Development shall be appointed by the Governor, subject to the approval of the Senate, and shall serve as director at the pleasure of the Governor. The annual salary of the Director of Employment Development shall be as provided for by Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.

§ 303

Amended by Stats. 1977, Ch. 1252.

There shall be five deputy directors in the Employment Development Department who shall be appointed by the Governor subject to the approval of the Senate and shall hold office at the pleasure of the Governor. The salary of the deputy directors shall be fixed in accordance with law.

§ 304

Amended by Stats. 1970, Ch. 1000.

Whenever a reference to this division is made in this article it shall also include all other divisions of this code.

§ 305

Amended by Stats. 2002, Ch. 29, Sec. 1. Effective January 1, 2003.

Regulations for the administration of the functions of the Employment Development Department under this code shall be adopted, amended, or repealed by the Director of Employment Development as provided in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

§ 305.5

Added by Stats. 1973, Ch. 1207.

All regulations heretofore adopted by the Director of the Department of Human Resources Development shall remain in effect and shall be fully enforceable unless and until readopted, amended or repealed by the Director of Employment Development.

§ 305.6

Amended by Stats. 1978, Ch. 429.

All regulations heretofore adopted by the Director of Benefit Payments pursuant to this code and in effect immediately preceding the operative date of the amendment of this section enacted by the Legislature during the 1977–78 Regular Session, shall remain in effect and shall be fully enforceable unless and until readopted, amended or repealed by the Director of Employment Development.

§ 306

Amended by Stats. 1973, Ch. 1212, Sec. 93.

The Director of Employment Development may adopt, amend, or repeal such regulations as are reasonably necessary to enforce his functions under this code.

§ 307

Added by Stats. 1984, Ch. 268, Sec. 31.7. Effective June 30, 1984.

The department shall provide, upon the request of any person or entity, any or all of the department’s rules, regulations, guidelines, bulletins, manuals, standards of general application, or the departmental responsibilities under any state or federal law, along with any subscription service necessary to assure prompt receipt of additional amendments to any of the above materials. The department shall charge a fee to cover (1) the costs of reproducing the materials and (2) postage associated with a subscription service; however, one free copy of the materials shall be provided to each state legislator, upon request.

Any documents properly classified as confidential shall be exempt from the requirements of this section.

§ 310

Amended by Stats. 1973, Ch. 1212, Sec. 102.

The Director of Employment Development or the Department of Employment Development may prescribe the extent, if any, to which any rule, regulation or interpretation issued or promulgated in accordance with the provisions of this code shall be applied without retroactive effect.

§ 311

Amended by Stats. 1973, Ch. 1212, Sec. 105.

The Director of Employment Development shall appoint such assistants except personnel of the appeals division as he finds necessary for the administration of this division, subject to the provisions of the Government Code, and may delegate to any of the officers or employees of the department such powers and duties as he considers necessary for the proper administration of this division.

The Director of Employment Development and his authorized representatives in the enforcement of the division shall have all the powers of a head of a department as set forth in Article 2 (commencing with Section 11180) of Chapter 2, Part 1, Division 3, Title 2 of the Government Code. For the purpose of any investigation, hearing, or proceeding under this division, the Director of Employment Development may delegate his power in relation thereto to any deputy, or other person properly authorized in writing by him.

§ 315

Amended by Stats. 1984, Ch. 537, Sec. 1.

The appeals division within the department includes the appeals board and its clerical staff and assistants and the administrative law judges and their supervisors and clerical staff and assistants.

§ 316

Amended by Stats. 2021, Ch. 78, Sec. 6. (AB 138) Effective July 16, 2021.

(a)For purposes of this section, the following definitions shall apply:

(1)“Additional languages” means the top 8 to 15 non-English and nonprimary languages used by limited English proficient adults in California according to the most recent American Community Survey by the United States Census Bureau.

(A)Whether referring to written or spoken languages, the eight additional languages in 2021 are Arabic, Farsi, Punjabi, Russian, Japanese, Hindi, Mon-Khmer (Cambodian), and Thai.

(B)The department shall thereafter review, evaluate, and update the list of additional languages at least every three years. In determining how many languages to include in the definition of “additional languages,” the department may consider various data sources, including, but not limited to, the United States Census Bureau, including the American Community Survey, other state and local government agencies, feedback from community-based organizations, and the department’s own data tracking measures.

(2)“Limited English proficient” means individuals who do not speak English as their primary language and who have a limited ability to read, write, understand, or speak English.

(3)“Linguistic variant” means a distinct form of a language used by people from a specific country or region.

(4)“Multilingual access portal” means the section of the department’s website that synthesizes critical website content and features all translated vital unemployment insurance documents.

(5)“Primary languages” means the top seven non-English languages used by limited English proficient adults in California according to the 2019 American Community Survey by the United States Census Bureau.

(A)When referring to written languages, the top seven languages are Spanish, traditional Chinese, simplified Chinese, Vietnamese, Tagalog, Korean, and Armenian.

(B)When referring to spoken languages, the top seven languages are Spanish, Cantonese, Mandarin, Vietnamese, Tagalog, Korean, and Armenian.

(6)“Vital information” means information, whether written, oral, or electronic, that is necessary for an individual to understand how to obtain any aid, benefit, service, or training or is required by law.

(b)There shall be maintained within an appropriate division of the department, a bureau, section, or unit relating to education and public instruction for the purpose of informing employers and workers of their rights and responsibilities under this code, and of instructing the public generally

concerning its basic purposes, provisions, and operations. All standard information employee pamphlets concerning unemployment and disability insurance programs shall be printed in English and the

primary languages.

(c)Commencing no later than June 1, 2022, each application for unemployment insurance shall contain a section asking the individual to identify their preferred written and spoken or signed languages to be kept in the individual’s claims record.

(d)Commencing no later than January 1, 2022, the department shall provide oral and signed language unemployment insurance services in real time by qualified interpreters or qualified bilingual staff.

(1)If the department staff cannot obtain interpretation in the individual’s language and linguistic variant in real time after good faith efforts to

acquire language services, the department shall provide the individual with a return telephone or relay call in the individual’s language within a reasonable timeframe.

(2)Upon the individual’s request, a qualified interpreter shall read the department’s documents and notices aloud in the individual’s preferred language within a reasonable timeframe.

(e)(1) Commencing no later than December 1, 2022, the department shall do all of the following:

(A) Provide dedicated phone lines for unemployment insurance claims in the primary languages in an effort to provide consistent wait times across all phone lines and collect and review data on phone usage by limited English proficient individuals.

(B) Translate static, nonpersonalized documents containing unemployment insurance vital information into the primary and additional languages.

individual’s language is not among the primary or additional languages, then upon the individual’s request, provide the individual with translation or oral or signed interpretation of documents in their preferred language.

(2)All vital documents described in this subdivision shall be available on the department website.

(f)The department shall translate the UI Online interface in the primary languages. The department shall make the translated UI Online interface available upon completion of the translation of each primary language, ending no later than April 1, 2024.

(g)The department shall establish and host a primary language multilingual access portal for unemployment insurance. The department shall make the content available upon completion of the translation of each primary language, ending no later than February 1, 2024.

(h)Before the completion of the multilingual access portal

described in subdivision (g), the department shall display both of the following on its internet website organized and translated by language:

(1)Available translated notices and other vital documents.

(2)The appropriate department phone number or phone numbers for individuals to contact when seeking multilingual unemployment insurance services in their preferred written or spoken language.

(i)Commencing no later than March 1, 2022, the department shall do all of the following:

(1)Engage linguistically marginalized communities to assist in expanding access to available unemployment insurance programs and services, including, but not limited to, all of the following activities:

(A)Conduct targeted outreach to limited English proficient communities to solicit advice on policies and practices affecting individuals who are eligible for the department’s services and

benefits.

(B)Market and promote its programs and services in the primary languages to the general public and limited English proficient communities.

(C)Establish a grant program lasting at least two years to provide funding for community-based organizations to provide outreach and education to limited English proficient communities.

(2)Employ a multilingual access coordinator and multilingual access unit to coordinate the department’s multilingual access services, provide technical assistance to department staff, and monitor the provision of multilingual access services.

(j)The department shall engage in regular data collection, monitoring, and oversight of multilingual access unemployment insurance services. The department shall annually report this data to the legislative budget committees.

(k)The provision of unemployment insurance language services shall not

cause an undue delay in receipt of services or benefits. If the department’s provision of language services unduly delays an individual’s receipt of services or benefits, the individual’s time to meet the department’s deadlines shall be extended for the period of time necessary to receive the language services.

(l)No later than July 1, 2022, the department shall report to the legislative budget and policy committees on the status of multilingual access services to be delivered to individuals participating in the State Disability Insurance and Paid Family Leave programs.

(m)A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

§ 317

Amended by Stats. 1973, Ch. 1212, Sec. 119.

The Director of Employment Development shall maintain a field investigating staff, whose function shall embrace investigation throughout the state of violations of this code, to the end that its provisions are more adequately and strictly enforced.

§ 318

Amended by Stats. 1973, Ch. 1212, Sec. 121.

The Director of Employment Development shall comply with all applicable provisions of the Government Code relating to contracts, budgets and other fiscal matters, including Sections 13320 to 13324, inclusive, of that code, in the same manner and to the same extent as other state agencies, insofar as such provisions are not inconsistent with the provisions of the Social Security Act and the rules and regulations of the Secretary of Labor.

§ 320

Amended by Stats. 1973, Ch. 1212, Sec. 124.

The Director of Employment Development shall make such reports in such form and containing such information as the Secretary of Labor may from time to time require, and shall comply with such provisions as the secretary may from time to time find necessary to assure the correctness and verification of such reports.

§ 320.3

Added by Stats. 2014, Ch. 377, Sec. 2. (AB 1556) Effective January 1, 2015.

(a)The director shall periodically review policies and practices used to determine eligibility for and the amount of benefits in the unemployment insurance program to identify those policies and practices that do all of the following:

(1)Result in delayed eligibility determinations or benefit payments.

(2)Increase workload for the department.

(3)Provide little or no value in identifying or preventing fraud or abuse in the unemployment insurance program.

(b)The director shall report

to the Legislature the results of the first review on or before July 1, 2015, and may submit subsequent reports thereafter. The report shall be submitted in compliance with Section 9795 of the Government Code.

§ 320.4

Added by Stats. 2021, Ch. 510, Sec. 2. (AB 56) Effective January 1, 2022.

(a)For the purposes of this part, upon appropriation by the Legislature, the department shall do all of the following:

(1)(A) Report at least once every six months on its internet website all of the following information:

(i)The amount for which it has issued overpayment notices.

(ii) The amount of overpayments waived.

(iii) The amount repaid related to those overpayment notices.

(B) The reports shall encompass benefit payments made by the department from March 1, 2020, until January 12, 2021.

(C) The department shall publish the information required under this paragraph until the repayment period for all the notices has elapsed.

(2)(A) Immediately perform a risk assessment of its deferred workloads, including deferred eligibility determinations and retroactive certifications.

(B)The department’s risk assessment performed under

subparagraph (A) shall take into account the relative likelihood that it issued payments to ineligible claimants by considering historic overpayment trends, as well as the new or altered eligibility requirements the federal government adopted in response to the COVID-19 pandemic. If necessary, the department shall either partner with another state agency or contract for assistance in performing the analysis in support of this assessment.

(3)(A) Develop a workload plan that prioritizes its deferred workloads based on the risk assessment performed pursuant to paragraph (2) and determine the staffing and information technology resources needed to accomplish the work within expected timeframes.

(B)Hire and train staff as necessary in order to carry out the workload plan. Using the workload plan, the department shall process the deferred work in alignment with all of the following:

(i)The need to pay timely benefits to new or continued claimants.

(ii) Federal expectations about the urgency of the deferred work.

(iii) Any deadlines by which the department may no longer be allowed to recoup inappropriately paid benefits.

(4)Immediately begin modeling workload projections that account for possible scenarios that would cause a spike in unemployment

insurance claims. The department shall plan its staffing around the likelihood of those scenarios, including having a contingency plan for less likely scenarios that would have a significant impact on its workload.

(5)By March 1, 2022, revise its public dashboards with regard to the number of backlogged claims in order to clearly describe the difference between those waiting for payment and those that are not, and to clearly indicate the number of claims that have waited longer than 21 days for payment because the department has not yet resolved pending work on the claim.

(6)By June 1, 2022, determine how many of its temporary automation measures for claims processing it can retain and by September 1, 2022, make those a permanent

feature of its claims processing.

(7)By June 1, 2022, determine the reasons that claimants cannot successfully complete their identity verification through secure identity verification networked, including ID.me, and work with department vendors to resolve identified problems. The department shall thereafter regularly monitor the rate of successful identity verifications to ensure that it consistently minimizes unnecessary staff intervention.

(8)By June 1, 2022, identify the elements of the department’s Benefit Systems Modernization process that can assist the department in making timely payments and that it can implement incrementally. The department shall then prioritize implementing the elements most likely to

benefit Californians.

(9)Implement a formal policy per the recession plan, by May 1, 2022, that establishes a process for tracking and periodically analyzing the reasons why unemployment insurance claimants call for assistance.

(10)(A) By May 1, 2022, implement a policy for tracking and monitoring its rate of first-call resolution. The department shall review first-call resolution data at least monthly to evaluate whether it is providing effective assistance to callers.

(B)To maximize the number of calls that department staff are able to answer, as soon as possible, the department shall add prerecorded message functionality to its phone system to advise claimants of their rights and responsibilities after they file their claim with an agent.

(C)To provide a more convenient customer service experience, as soon as possible, the department shall implement features of its phone

system that allow callers to request a callback from an agent instead of waiting on hold for assistance.

(11)To prepare to respond to victims of identity theft who receive incorrect tax forms, the department shall, by February 15, 2022, provide information on its internet website and set up a separate email box for those individuals to contact the department and receive prompt resolution.

(12)(A) To the extent consistent with federal law, the department shall immediately obtain from any federally chartered financial institution or other financial institution used by the department to make benefit payments a comprehensive list of claimants’ accounts that are frozen. The department shall immediately thereafter evaluate the list,

including considering using ID.me to verify claimants’ identities, to identify accounts that should be unfrozen. By March 1, 2022, the department shall direct the institution to take action to freeze or unfreeze accounts as appropriate to ensure that it provides legitimate claimants with benefits but does not pay benefits related to fraudulent claims.

(B)To ensure that the department reviews each account that an

institution reports to it as suspicious or potentially fraudulent, by February 2022, the department shall establish a centralized tracking tool that allows it to review and stop payment on claims, as appropriate. The department shall use this tool to monitor its own internal decisions and track whether the claimant responds to its requests for identity information and should, therefore, have their account unfrozen.

(b)Upon

appropriation by the Legislature, by March 1, 2022, the department shall designate a unit as responsible for coordinating all fraud prevention and detection. The department shall assign that unit sufficient authority to carry out its responsibilities and align the unit’s duties with the Government Operations Agency’s framework for fraud prevention.

§ 320.5

Amended by Stats. 2002, Ch. 29, Sec. 2. Effective January 1, 2003.

The director may by authorized regulations prescribe the information required to be reported to the department by employing units under this division and employers subject to withholding tax under Division 6 (commencing with Section 13000) in order to make reports required by the Secretary of Labor, to provide information necessary to administer this code, to estimate unemployment rates or to make other estimates required for the purpose of dispensing or withholding money payments under the Welfare Reform Act of 1971, the Employment Security Amendments of 1970, the Emergency Unemployment Compensation Act of 1971, or the Workforce Investment Act of 1998, and to make any other reports or estimates that may be required by any other state or federal law. The authorized regulations of the director may include requirements for the reporting of employment, unemployment, hours, wages, earnings, the location and nature of the industrial, business, or other activity of each establishment for the conduct of business, performance of services, or industrial operations, and such other requirements as are necessary to comply with this section.

§ 321

Amended by Stats. 1973, Ch. 1212, Sec. 127.

The Director of Employment Development shall make available, upon request, to any agency of the United States government charged with the administration of public works or assistance through public employment, the following information relating to recipients of unemployment compensation:

(a)The recipient’s name.

(b)The recipient’s address.

(c)The ordinary occupation and employment status of each such recipient of unemployment benefits.

(d)A statement of such recipient’s rights to further compensation under this division.

§ 321.5

Added by Stats. 2021, Ch. 511, Sec. 2. (AB 110) Effective October 5, 2021.

(a)For purposes of preventing payments on fraudulent claims for unemployment compensation benefits, the Director of Employment Development shall verify, with the information provided by the Department of Corrections and Rehabilitation pursuant to Section 11105.9 of the Penal Code,

that the claimant is not an inmate currently incarcerated in the state

prisons.

(b)The Employment Development Department shall complete necessary system programming or automation upgrades to allow electronic monitoring of Department of Corrections and Rehabilitation inmate data to prevent payment on fraudulent claims for unemployment compensation benefits at the earliest possible date, but not later than September 1, 2023.

§ 322

Amended by Stats. 2022, Ch. 67, Sec. 19. (SB 191) Effective June 30, 2022.

The department may exchange information with federal, state, or local governmental departments and agencies that are concerned with the administration of unemployment or disability insurance, or the collection of taxes that may be used to finance the administration of unemployment or disability insurance, or the relief of unemployed or destitute individuals, or legislation concerning, regulating, or in any manner affecting the obligations arising out of an employer-employee relation, and with other federal, state, or local departments or agencies of government as the department deems necessary or desirable for the proper administration of this division in accordance with authorized regulations.

§ 323

Amended by Stats. 1973, Ch. 1212, Sec. 133.

The Director of Employment Development may apply for an advance to the Unemployment Fund and accept the responsibility for the repayment of such advance in accordance with the conditions specified in Title XII of the Social Security Act, as amended, to secure to this state and its citizens the advantages available under the provisions of that title.

§ 324

Enacted by Stats. 1953, Ch. 308.

The expense of the administration of this division shall be paid out of the Unemployment Administration Fund, unless otherwise provided for in this division.

§ 325

Amended by Stats. 1979, Ch. 373.

(a)The department may study and make recommendations as to action which might tend to:

(1)Promote the prevention of unemployment and the stabilization of employment.

(2)Encourage and assist in the adoption of practical methods of vocational training, retraining and guidance.

(3)Promote the establishment and operation by governmental units and agencies of reserves for public work to be prosecuted in time of business depression and unemployment.

(4)Promote the reemployment of unemployed workers throughout the state in any way that may seem feasible.

(5)Reduce and prevent unemployment.

(6)Establish the most effective methods of providing economic security through all forms of social insurance.

(b)To accomplish the ends set forth in subdivision (a) of this section, the department may carry on and publish the results of investigations and research studies.

§ 325.5

Added by Stats. 1990, Ch. 928, Sec. 1.

The department, in consultation and coordination with veterans’ organizations and veteran service providers, shall do all of the following:

(a)Research the needs of veterans throughout the state and develop a profile of veterans’ employment and training needs.

(b)Develop a statewide plan for the equitable distribution of employment funds for veterans’ employment services.

(c)Seek federal funding for purposes of subdivision (a).

§ 325.6

Added by Stats. 2006, Ch. 69, Sec. 33. Effective July 12, 2006.

(a)It is the intent of the Legislature that state supported Veterans Employment Training services meet the same performance standards as those required by the federal Workforce Investment Act for services provided to veterans.

(b)Following any fiscal year in which state funds support the Veterans Employment Training services program, the Employment Development Department shall provide an annual report to the Legislature, on or before November 1, regarding the following performance measures:

(1)The number of veterans receiving individualized, case managed services.

(2)The number of veterans who receive individualized, case managed services entering employment.

(3)The retention rate for veterans who enter employment.

(4)The average earnings for veterans entering employment.

§ 326

Amended by Stats. 1979, Ch. 373.

The department shall investigate and report upon the degree of unemployment hazard in various industries and occupations and their cost to the Unemployment Fund. It shall recommend to employers in industries or occupations showing an excessive cost to that fund, means for stabilizing employment. It shall also, if necessary, recommend to the Legislature a higher rate of contribution for any classification of industries or occupations in which unemployment is excessive or chronic.

§ 327

Added by Stats. 1979, Ch. 997.

The department is authorized to enter into negotiations with the United States Bureau of the Census to expand the current population survey for a sample of up to 35,000 households in California. The department shall report its findings and the result of the negotiations to the Legislature. At such time as the Bureau of the Census is prepared to undertake the workload involved in expanding California’s portion of the population survey, the department shall submit to the Legislature a budget request for funds not available from other sources to finance a contract with the Bureau of the Census. When sufficient funds are made available through the budget process or from other sources, the department is authorized to contract with the Bureau of the Census for the purpose of expanding the current population survey to a sample of up to 35,000 households in California. Based on the results of the expanded survey, the department shall compile and publish monthly information pertaining to employment and unemployment and shall provide such information to state governmental entities, including the Legislature, which are responsible for preparing state economic projections and revenue estimates.

§ 329

Amended by Stats. 2019, Ch. 626, Sec. 2. (AB 1296) Effective January 1, 2020.

(a)The director, or the director’s designee, shall serve as Chairperson of the Joint Enforcement Strike Force on the Underground Economy provided for in Executive Order W-66-93. The strike force shall include, but not be limited to, representatives of the Employment Development Department, the Department of Justice, the Department of Consumer Affairs, the Department of Industrial Relations, the

California Department of Tax and Fee Administration, the Franchise Tax Board, and the Department of Insurance.

(b)The strike force may invite the following state agencies to serve in an advisory capacity: the California Health and Human Services Agency, the Department of Motor Vehicles, the Department of Alcoholic Beverage Control, and the Department of the California Highway Patrol.

(c)The strike force shall have the following

duties:

(1)(A) To facilitate and encourage the development and sharing of information by the participating agencies necessary to combat the underground economy including the enforcement activities regarding labor, tax, insurance, and licensing law violators operating in the underground economy. Duly authorized representatives of the strike force employed by an agency listed in subdivision (a) shall exchange intelligence, data, documents, confidential information, or lead referrals pursuant to this section, to the extent permitted by state and federal laws and regulations.

(B)Any person who is involved or has been involved in the strike force pursuant to this section and at any time has obtained confidential information shall not divulge, or make known in any manner not allowed by law, any of the confidential information received by or reported to members of the strike force. Confidential information authorized to be exchanged pursuant to this section shall retain its confidential status and shall otherwise remain subject to the confidentiality provisions contained in applicable federal and state laws.

(C)Participating agencies may also cooperate and share any appropriate information with the Labor Enforcement Task Force established pursuant to Assembly Bill 1464 of the 2011–12 Regular Session (Chapter 21 of the Statutes of 2012), to the extent related to the underground economy including the enforcement activities regarding labor, tax, insurance,

and licensing law violators operating in the underground economy permitted by state and federal laws and regulations. Members of the Labor Enforcement Task Force who have obtained confidential information pursuant to this section shall not divulge, or make known in any manner not allowed by law, any of the confidential information received from the strike force.

(2)To improve the coordination of activities among the participating agencies.

(3)To develop methods to pool, focus, and target the enforcement resources of the participating agencies in order to deter tax evasion and maximize recoveries from blatant tax evaders and violators of cash-pay reporting laws.

(4)To reduce enforcement costs wherever possible by eliminating duplicative audits and investigations.

(d)In addition, the strike force shall be empowered to:

(1)Form joint enforcement teams when appropriate to utilize the collective investigative and enforcement capabilities of the participating members.

(2)Establish committees and rules of procedure to carry out the activities of the strike force.

(3)To solicit the cooperation and participation of district attorneys and other state and local agencies in carrying out the objectives of the strike force.

(4)Establish procedures for soliciting referrals from the public, including, but not limited to, an advertised telephone

hotline.

(5)Develop procedures for improved information sharing among the participating agencies and the Labor Enforcement Task Force, such as shared automated information database systems, the use of a common business identification number, and a centralized debt collection system, to the extent permitted by state and federal laws and regulations.

(6)Develop procedures to permit the participating agencies to use

civil sanctions.

(7)Provide participating agencies, including the Department of Justice, with investigative leads where collaboration opportunities exist for felony-level criminal investigations, including, but not limited to, referring leads to agencies with appropriate enforcement jurisdiction, and to pursue criminal prosecution when unscrupulous businesses violate the state’s labor, employment, licensing, insurance, and tax laws with respect to the underground economy.

(8)Evaluate, based on its activities, the need for any statutory change to do any of the following:

(A)Eliminate barriers to interagency information sharing.

(B)Improve the ability of the participating agencies to audit, investigate, and prosecute tax and cash-pay violations.

(C)Deter violations and improve voluntary compliance.

(D)Eliminate duplication and improve cooperation among the participating agencies.

(E)Establish shareable information databases.

(F)Establish a common business identification number for use by participating agencies.

(G)Establish centralized, automated debt collection services for the participating agencies.

(e)The strike force shall report to the Governor and the Legislature

annually during the period of its existence, by June 30, of each year, regarding its activities.

The report shall include, but not be limited to, all of the following:

(1)The number of cases of blatant violations and noncompliance with tax and cash-pay laws identified, audited, investigated, or prosecuted through civil action or referred for criminal prosecution.

(2)Actions taken by the strike force to publicize its activities.

(3)Efforts made by the strike force to establish an advertised telephone hotline for receiving referrals from the public.

(4)Procedures for improving information sharing among the agencies represented on the strike force.

(5)Steps taken by the strike force to improve cooperation among participating agencies, reduce duplication of effort, and improve voluntary compliance.

(6)Recommendations for any statutory changes needed to accomplish the goals described in paragraph (8) of subdivision (c).

§ 331

Added by Stats. 2022, Ch. 109, Sec. 1. (AB 1805) Effective January 1, 2023. Repealed as of January 1, 2030, by its own provisions.

(a)The director shall post, on the homepage of the department’s internet website, a hyperlink to information about the Federal Unemployment Tax Act tax credit. On the web page describing this credit, the director shall indicate whether the Unemployment Fund owes money to the federal government, and if so, the implications of that outstanding debt on employers’ unemployment insurance costs.

(b)The director shall update the information posted pursuant to subdivision (a) on the first of each month, as applicable.

(c)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

§ 333

Added by Stats. 1983, Ch. 1226, Sec. 5. Effective September 30, 1983.

(a)The department shall place a high priority on the automation of the Benefit Payment Control Program, specifically including, but not limited to, automating the ledger and collection functions.

(b)An automated system for the Benefit Payment Control Program shall include a function which provides for the automatic issuance of monthly collection letters to unemployment insurance claimants who have received benefit overpayments.

(c)Personnel savings from automation of the Benefit Payment Control Program, notwithstanding any other provision of law, shall be redirected to the processing of additional willful overpayment cases.

§ 334

Added by Stats. 1983, Ch. 1226, Sec. 6. Effective September 30, 1983.

The director shall pursue the following methods to increase the collection of unemployment insurance benefit overpayments:

(a)Developing administrative or automated procedures to insure that field offices appropriately refer cases to the central office for the timely interception of a claimant’s state tax refund.

(b)Modifying the automated overpayment detection system so that it will identify more overpayments.

(c)Increasing the number of potential overpayments which are reviewed by the department.

(d)Working with the Legislature and the Governor to adequately staff the Benefit Payment Control Program.

§ 335

Amended by Stats. 2013, Ch. 353, Sec. 125. (SB 820) Effective September 26, 2013. Operative July 1, 2013, by Sec. 129 of Ch. 353.

The department, in consultation and coordination with the film and movie industry, the Governor’s Office of Business and Economic Development, and the California Film Commission shall do all of the following, contingent upon the appropriation of funds in the annual Budget Act for these specified purposes:

(a)Research and maintain data on the employment and output of the film industry, including full-time, part-time, contract, and short duration or single event employees.

(b)Examine the ethnic diversity and representation of minorities in the entertainment industry.

(c)Determine the overall direct and indirect economic impact of the film industry.

(d)Monitor film industry employment and activity in other states and countries that compete with California for film production.

(e)Review the effect that federal and state laws and local ordinances have on the filmed entertainment industry.

(f)Prepare and release biannually a report to the chairpersons of the appropriate Senate and Assembly policy committees that details the information required by this section.

§ 336

Added by Stats. 2004, Ch. 827, Sec. 1. Effective January 1, 2005.

The director shall establish procedures to identify the transfer or acquisition of a business that is undertaken for purposes of obtaining a lower unemployment insurance contribution rate.

§ 339

Amended by Stats. 2022, Ch. 119, Sec. 1. (AB 2129) Effective January 1, 2023.

(a)The department shall develop and, upon appropriation by the Legislature, implement a recession plan to prepare for an increase in unemployment insurance compensation benefits claims due to an economic recession. The plan shall detail how to respond to economic downturns with a predetermined strategy that has considered the full effect on the department’s operations, and shall include, but not be limited to, all of the following:

(1)Identifying the lessons learned from previous economic downturns, including the coronavirus (COVID-19) pandemic.

(2)Identifying the indicators the department will be monitoring and using to project

the likely upcoming workload impacts.

(3)Identifying the steps the department will take to address increases in its workload, such as cross-training staff, changing its staffing levels, prioritizing specific tasks, and adjusting the way it performs certain work, including addressing all of the following factors:

(A)How quickly staff can be hired.

(B)Whether there is physical space for staff.

(C)Whether the selected location has the technology that will be needed.

(4)Analyzing current job duties or classifications and ensuring the right staff is doing the right work, including all of the following factors:

(A)Whether current staff is ready to take on more complex work, increased volumes of work, or both.

(B)Identification of a backup system for a sudden influx of work.

(C)Assessing how existing seasonal and part-time staff is utilized, including whether the department can temporarily alter the work duties of current staff instead of hiring new staff.

(D)Assessing how current staff can be cross-trained.

(E)Extending hours of operation.

(5)Identifying ways to improve self-serve services to avoid long wait times to speak to staff.

(6)Assessing the current inventory of equipment, including both of the following:

(A)Determining if the department should lease equipment.

(B)Determining if there is enough equipment to support anticipated increased staffing levels.

(7)Identifying the altered policies or procedures that the department would activate if a rise in unemployment insurance compensation benefits claims became significant enough to warrant that step.

(8)Analyzing communications, including determining if additional lines of communication are needed, such as additional phone lines, additional email boxes, and external

communications, including, but not limited to, social media.

(9)Identifying budget and funding constraints.

(10)Enhancing claims processing tools to ensure that the department’s identity verification processes are as robust as possible.

(11)Assessing call center protocols by doing both of the following:

(A)Establishing a process for tracking and periodically analyzing the reasons why unemployment insurance compensation benefits claimants call for assistance.

(B)Analyzing the data gathered to improve the department’s call center by doing both of the following:

(i)Identifying and resolving weaknesses or problems with the ways in which the department assists unemployment insurance compensation benefits claimants through self-serve services and non-call center options.

(ii) Developing specialized training modules to quickly train call center staff on the most commonly requested items with which callers want assistance.

(12)Summarizing actions taken by the department to implement recommendations contained in the recession plan previously submitted in accordance with subdivision (b).

(b)(1) The department shall provide a copy of the recession plan to the Joint Legislative Budget Committee, the Senate Committee on Labor, Public Employment and Retirement, the Assembly Committee on Insurance, and the Department of Finance by March 1, 2022, and update the recession plan and provide a copy to the

Joint Legislative Budget Committee, the Senate Committee on Labor, Public Employment and Retirement, the Assembly Committee on Insurance, and the Department of Finance every second year thereafter.

(2)The report shall be submitted in compliance with Section 9795 of the Government Code.

§ 339.5

Added by Stats. 2022, Ch. 836, Sec. 1. (SB 1138) Effective January 1, 2023.

(a)The department shall conduct a feasibility study that examines the idea of extending unemployment insurance benefits to self-employed individuals and reports on what actions are necessary to implement the expansion.

(b)The feasibility study shall include, at a minimum, all of the following:

(1)The feasibility of including self-employed individuals in the existing unemployment insurance structure.

(2)The type of financing structure that would be appropriate for self-employed individuals.

(3)The benefit determination structure that would be

appropriate for self-employed individuals.

(4)Fraud mitigation considerations.

(5)Documentation and tracking necessities.

(c)By December 1, 2023, the department shall complete and submit the feasibility study to the Legislature, in compliance with Section 9795 of the Government Code, and to the Senate Committee on Labor, Public Employment and Retirement.

§ 340

Added by Stats. 2021, Ch. 78, Sec. 7. (AB 138) Effective July 16, 2021.

(a)(1) The department shall provide a plan for assessing the effectiveness of its fraud prevention and detection tools by May 1, 2022, to the Senate Committee on Labor, Public Employment and Retirement, the Assembly Committee on Insurance, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Joint Legislative Audit Committee.

(2)The department shall provide a report with an update on its progress on performing the assessment that the plan identified pursuant to paragraph (1) by July 1, 2022, to the Senate Committee on Labor, Public Employment and Retirement, the Assembly Committee on Insurance, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and

the Joint Legislative Audit Committee.

(b)On or before January 1, 2023, and annually thereafter, the department shall analyze and assess the effectiveness of its fraud prevention and detection tools and shall submit this analysis and assessment to the Senate Committee on Labor, Public Employment and Retirement, the Assembly Committee on Insurance, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Joint Legislative Audit Committee. Details on fraud methods and tools may be generalized, excluded, or redacted to protect the fraud deterrence practices of the department.

(c)The plan, assessments, and reports required by this section shall be provided consistent with the requirements of Section 9795 of the Government Code.