Article 1 - Employment Development Department

California Unemployment Insurance Code — §§ 301-340

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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

(C) If the

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.

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.

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.

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.

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.

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.

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