California Unemployment Insurance Code 1870 - 2772

back to top

1870.  (a) When an employer or any individual assessed under Section
1735 owes delinquent contributions, withholdings, penalty, or
interest to the department, the director may enter into an agreement
to accept partial payment in satisfaction of the full liability under
the following conditions when he or she believes that it will be in
the best interest of the state.
   (1) Offers in compromise shall be considered only for liabilities
of inactive out-of-business accounts, and of individuals assessed
under Section 1735 or partners only if the individual assessed or
partner no longer has a controlling interest or association with the
business that incurred the liability to which the offer in compromise
applies.
   (2) The employer, individual assessed under Section 1735, or
partner does not have access to current income sufficient to pay more
than the accumulating interest and 6.7 percent of the liability on
an annual basis.
   (3) The employer, individual assessed under Section 1735, or
partner does not have reasonable prospects of acquiring increased
income or assets that would enable him or her to liquidate the
liability in a reasonable period.
   (4) The employer, individual assessed under Section 1735, or
partner does not have assets, whether or not subjected to lien by the
department, that if sold, would satisfy the liability.
   (5) The amount offered in compromise is more than the department
could reasonably expect to collect through involuntary means during
the four-year period beginning on the date on which a compromise
agreement is tendered by the employer, individual assessed under
Section 1735, or partner.
   (6) The compromise offer is submitted by the taxpayer in writing
and is accompanied by cash, a cashier's check, or money order equal
to the amount offered in compromise.
   (7) Only nondisputed, final tax liabilities shall be considered
for compromise.
   (8) Liabilities that arose as a result of fraud or actions that
resulted in a conviction for a violation of this code shall not be
compromised.
   (b) When in the director's judgment it serves the best interest of
the state, the director may permit the agreed upon amount to be paid
in installments under a payment agreement not to exceed five years
in length.
   (c) The employer or individual submitting an offer shall be
notified in writing when an offer in compromise is accepted or
rejected.
   (1) Moneys paid to the department along with an offer shall not be
applied against the liability by the department until the offer has
been accepted or rejected.
   (2) In the event an offer is rejected, the amount will either be
applied to the liability or refunded, at the discretion of the
employer or individual submitting the offer.



1871.  No agreement negotiated by the director under Section 1870
that reduces any liability by ten thousand dollars ($10,000) or more
shall be effective until it is reviewed and approved by the
Unemployment Insurance Appeals Board. In reviewing any agreement, the
Unemployment Insurance Appeals Board shall be restricted to
determining, based on the case file submitted by the director,
whether the director has exercised due diligence in determining
whether the conditions set forth in subdivision (a) of Section 1870
have been satisfied.


1872.  A determination by the director that it would not be in the
best interest of the state to accept partial payment in satisfaction
of a tax liability shall not be subject to administrative appeal or
judicial review.


1873.  (a) Once the terms of the compromise agreement are fulfilled,
including payment of the amount offered, the following shall occur:
   (1) The liability shall be considered satisfied in full.
   (2) All tax liens filed or recorded, or both, in accordance with
Article 1 (commencing with Section 1701) shall be released.
   (3) A statement shall be placed on file with the department
containing the following information:
   (A) The taxpayer's name and identification number.
   (B) The year or years and quarter or quarters involved.
   (C) The reason or reasons the liability was reduced by an offer in
compromise.
   (D) The total amount of unpaid tax, interest, additions to tax,
and penalties at issue in the compromise.
   (E) The terms of the offer in compromise.
   (F) The total amount paid under the offer in compromise.
   (b) All records of compromise required to be kept by the
department may be reviewed as part of the annual single audit of the
Employment Development Department.
   (c) The department shall do all of the following:
   (1) Notify the employer or individual submitting the offer in
writing that the terms of the compromise agreement have been
fulfilled, and that all liens filed or recorded, or both, in
accordance with Article 1 (commencing with Section 1701) against the
taxpayer's interests have been released.
   (2) Furnish the employer or individual submitting the offer with a
copy of the statement that is on file in accordance with paragraph
(3) of subdivision (a).
   (d) For a period of one year from the date that the statement is
placed on file as required under paragraph (3) of subdivision (a),
the statement shall be available for public inspection. However, no
lists shall be distributed by the department in connection with these
statements.



1874.  In cases of joint and several liability, and where amounts
are owed under Section 1735, an agreement under Section 1870 to
accept partial payment in satisfaction of the liability of one or
more debtors shall neither relieve any other debtors of the
obligation to liquidate the entire balance of the debt remaining
unpaid, nor grant to the debtor or debtors any right to appeal or
seek judicial review of the director's determination.



1875.  (a) If an offer under Section 1870 to accept partial payment
in satisfaction of the liability has been accepted, and it is
subsequently determined that any person willfully did any of the
following, the acceptance shall be rescinded and all compromised
liabilities shall be reestablished without regard to any statute of
limitations that is applicable to this division:
   (1) Concealed from any officer or employee of the state any
property belonging to the estate of the employer or other person
liable with respect to the tax.
   (2) Received, withheld, destroyed, mutilated, or falsified any
book, document, or record.
   (3) Made any false statement relating to the estate or financial
conditions of the employer or other person liable with respect to the
tax.
   (4) Failed to pay any tax liability owed the department for any
subsequent, active business in which the employer or individual who
previously submitted the offer in compromise has a controlling
interest or association.
   (b) Upon any rescission pursuant to subdivision (a), the
department, at its discretion, may file a Notice of State Tax Lien
against the individuals or entity responsible for the previously
compromised liability.
   (c) For all rescissions under subdivision (a), the department
shall notify the employer or individual who previously submitted the
offer in compromise in writing of both of the following:
   (1) The rescission of any offer and reasons therefor.
   (2) The amount of reestablished liability that is due and payable.

back to top

1951.  The manner in which disputed claims, appeals and petitions
shall be presented, the reports required thereon from the claimant
and from any employing unit and the conduct of hearings and appeals
shall be in accordance with rules prescribed by the appeals board.
The appeals board shall require administrative law judges to
consolidate for hearing cases with respect to which the alleged facts
and the points of law are the same. The appeals board shall permit a
party or representative to participate in a hearing by telephone
upon the party's or representative's request and showing a good
cause, in accordance with regulations adopted by the board.




1952.  The appeals board and its representatives and administrative
law judges are not bound by common law or statutory rules of evidence
or by technical or formal rules of procedure but may conduct the
hearings and appeals in such manner as to ascertain the substantial
rights of the parties. A full and complete record shall be kept of
all proceedings in connection with disputed claims. All testimony at
any hearing held in this state upon a disputed claim arising under
this division shall be recorded and, when feasible, by a reporter in
shorthand or by machine writing. The testimony need not be
transcribed unless the disputed claim is further appealed.



1953.  In any proceeding, hearing, investigation or in the discharge
of any duties imposed under this division any member of the appeals
board, an administrative law judge and any authorized employee
designated by it may administer oaths, take depositions, certify to
official acts and issue subpoenas to compel the attendance of
witnesses and the production of books, papers, correspondence,
memoranda and other records.



1953.5.  The presiding officer may conduct all or part of a hearing
by telephone, television, or other electronic means, notwithstanding
a party's objection pursuant to Section 11440.30 of the Government
Code, on a showing of good cause by the party requesting the hearing
by telephone, television, or other electronic means.




1954.  Obedience to subpenas issued in accordance with this chapter
may be enforced by application to the superior court as set forth in
Article 2, Chapter 2, Part 1 of Division 3 of Title 2 of the
Government Code.


1955.  No person shall be excused from attending and testifying or
from producing books, papers, correspondence, memoranda and other
records as required by a subpoena issued pursuant to this chapter on
the ground that the testimony or evidence, documentary or otherwise,
required of him may tend to incriminate him or subject him to a
penalty or forfeiture. No individual shall be prosecuted or subjected
to any penalty or forfeiture for or on account of any transaction,
matter, or thing concerning which he is compelled, after having
claimed his privilege against self-incrimination, to testify or
produce evidence, documentary or otherwise. Nothing in this section
exempts any individual from prosecution and punishment for perjury
committed in so testifying.



1956.  Witnesses subpoenaed pursuant to this division shall be
allowed the same fees which are prescribed in Section 68093 of the
Government Code relative to proceedings in the superior court. Such
fees and all expenses incurred in any proceeding, hearing, review or
investigation by the director or the Appeals Board or the
representative of either, except charges for services by counsel or
other agent representing claimant, employer, or other interested
person, shall be part of the expenses of administering this division,
and no individual claiming benefits shall be charged by the Appeals
Board, or its representative, fees of any kind in any procedure under
this division.



1957.  Any individual claiming benefits in any proceedings before
the appeals board or its authorized representative may be represented
by counsel or agent but no such counsel or agent shall charge or
receive for such services more than an amount approved by the appeals
board. Any person who violates any provision of this section shall
for each such violation be fined not less than fifty dollars ($50)
nor more than one thousand dollars ($1,000) or be imprisoned not more
than six months or both.



1957.5.  The department shall make available without charge printed
forms for the use of any individual claiming benefits to authorize a
counsel or an agent to represent him in any proceedings before the
appeals board or its administrative law judges or authorized
representatives. If any claimant files an authorization for such
representation with the appeals board or its administrative law
judges, the appeals board or its administrative law judges shall,
upon request by the claimant, serve copies of all notices and
transcript pertinent to such proceedings on the claimant and his
counsel or agent.



1958.  No cost shall be awarded in hearings on appeal by the Appeals
Board, but if in the opinion of the Appeals Board, the claimant or
an employer has acted in bad faith and without reasonable basis for
appeal, a penalty not exceeding 10 percent of the amount finally
awarded on the appeal may be taxed against and deducted from the
award by the Appeals Board and shall be placed in the Unemployment
Fund. In those cases where a penalty is assessed against an employer
his account, as maintained under this act, shall be debited with the
amount of the penalty so assessed.



1959.  For the purpose of any investigation, hearing or proceeding
under this division, the appeals board may delegate its power in
relation thereto to any deputy, administrative law judge, or other
person properly authorized in writing by it.




1960.  Any finding of fact or law, judgment, conclusion, or final
order made by a hearing officer, administrative law judge, or any
person with the authority to make findings of fact or law in any
action or proceeding before the appeals board, shall not be
conclusive or binding in any separate or subsequent action or
proceeding, and shall not be used as evidence in any separate or
subsequent action or proceeding, between an individual and his or her
present or prior employer brought before an arbitrator, court, or
judge of this state or the United States, regardless of whether the
prior action was between the same or related parties or involved the
same facts.

back to top

2051.  The State of California accepts the provisions of the
Wagner-Peyser Act, approved June 6, 1933, as amended by the Workforce
Investment Act of 1998 (Public Law 105-220) passed by the Congress
of the United States, and entitled "An act to provide for the
establishment of a national employment system and for cooperation
with the states in the promotion of the system, and for other
purposes," in conformity with Section 4 thereof, and will observe and
comply with the requirements of that act.
   The department is the agency of this state for the purposes of
that act.



2052.  The director may cooperate with any authority of the United
States having powers and duties under the Wagner-Peyser Act, and may
do and perform all things necessary to secure to this State the
benefits of that act in the promotion and maintenance of a system of
public employment offices.



2053.  All money received by the State under the Wagner-Peyser Act
and paid into the Unemployment Administration Fund shall be expended
as provided by this division and by that act of Congress.



2054.  (a) The director shall:
   (1) Establish, maintain, and operate adequately staffed public
employment offices for men, women, and youth who are legally
qualified to engage in gainful occupations and shall maintain a
veterans' placement service to be devoted to securing work for
veterans and a farm placement service to promote the placement and
clearance of agricultural labor, and a youth placement service to
promote the placement of youth in suitable fields of employment. The
director shall also establish and maintain a job counseling and
placement service for those persons who are encountering, or may be
expected to encounter difficulty in securing or keeping a job
principally because of their age. The maintenance of a farm placement
service shall not be required during such time as applicable federal
laws provide for a system of farm labor placement financed from
federal funds which is separate and apart from the general system of
public employment offices. Adequate records and statistics on all the
classifications specified in this subdivision shall be compiled and
kept, and a report of these records, statistics, applications, and
placements shall be made semiannually.
   (2) Procure, by lease or otherwise, suitable offices, and incur
the necessary expenses in the conduct thereof.
   (b) It is the policy of this state to make every reasonable effort
to assist men and women who are leaving active duty with the armed
services of the United States in obtaining employment in the civilian
workforce. These efforts shall include outreach to those service
personnel who will be leaving active duty in the near future,
including job seminars and job fairs at military bases.
   (c) The director shall perform the duties required by this section
within existing budgetary resources of the agency within which the
department operates.



2055.  Free public employment offices shall be maintained in the
Cities of San Francisco, Los Angeles, Oakland and Sacramento, and,
whenever the director deems it necessary, in other cities.



2056.  The director may:
   (a) Create unemployment districts.
   (b) Promulgate such rules as he finds desirable for the
registration of unemployed persons, and for placing them in available
employment. To this end he may accept financial contributions from
any governmental unit or agency, or private persons.



2057.  For the purpose of establishing and maintaining free public
employment offices, the director may enter into agreements with the
Railroad Retirement Board, or any other agency of the United States
charged with the administration of an unemployment compensation law,
with any political subdivision of this State, or with any private,
nonprofit organization, and as a part of any such agreement, may
accept money, services, quarters, or other valuable consideration as
a contribution to the employment service account in the Unemployment
Administration Fund.



2058.  The department shall cooperate with other departments,
agencies, and institutions both public and private in providing youth
placement services and in the development of youth employment
programs.
   The department shall maintain current information on operations
within the State of all types of youth employment programs such as
the Youth Employment Service (Y.E.S.) and the Youth Employment
Organization (Y.E.O.) plans, the work experience experimental program
of the Department of Education, the Berkeley Workreation program,
the effort by the Congress of Youth Coordinating Councils, and other
similar programs. Upon request the department shall distribute to
public and private agencies and groups information concerning any or
all recognized plans for developing youth employment programs, the
cooperative services offered by the various state and other public
agencies in the field of youth employment, and the methods of
initiating and developing such programs.



2059.  For the purpose of implementing the program set forth in
Chapter 2.5 (commencing with Section 10650) of Part 2 of Division 9
of the Welfare and Institutions Code, the department may utilize
funds available to provide training and placement for present and
potential recipients of public assistance to the extent permitted by
federal law.



2061.  It is the intent of the Legislature in adopting this section
to ensure that job order information registered with the Job Service
of the Employment Development Department and the One-Stop Career
Centers System be shared as expeditiously and thoroughly as possible
between the department's field offices and one-stop career centers
both in the local labor market and throughout the state.
   The Legislature finds that job order sharing will result in better
service to employers and more efficient service to job seekers.
   The provisions of this section shall be subject to the limitations
of federal budgetary constraints.

back to top

2070.  It is the public policy of the State of California that
manpower should be used to its fullest extent. This statement of
policy compels the further conclusion that human beings seeking
employment, or retention thereof, should be judged fairly and without
resort to rigid and unsound rules that operate to disqualify
significant portions of the population from gainful and useful
employment. Accordingly, use by employers, employment agencies, and
labor organizations of arbitrary and unreasonable rules which bar or
terminate employment on the ground of age offend the public policy of
this State.


2071.  As used in this chapter:
   (a) "Employee" does not include any individual employed by his
parents, spouse or child or in the domestic service of any person.
   (b) "Employer" does not include any employer with less than six
persons in his employ. It does include any employer with six or more
employees. It also includes the State of California and any political
subdivision thereof.
   (c) "Employment agency" includes any person undertaking to procure
employees or opportunities to work.
   (d) "Labor organization" includes any organization that is
constituted for the purpose, in whole or in part, of collective
bargaining or in dealing with employers concerning grievances, terms
or conditions of employment or of other mutual aid or protection in
connection with employees.
   (e) "Person" includes one or more individuals, partnerships,
associations, corporations, limited liability companies, legal
representatives, trustees, trustees in bankruptcy or receivers.




2073.  The department shall co-operate with other departments,
agencies, and institutions both public and private in providing job
counseling and placement services and developing employment programs
for older workers, including employment programs to protect and
safeguard the right and opportunity of such workers to seek, obtain,
and hold employment without discrimination or abridgement on account
of age, unless based upon a bona fide occupational qualification or
upon applicable security regulations established by the United States
or the State of California.



2074.  The department shall formulate policies to effectuate the
purposes of this chapter and make recommendations to agencies and
officers of the State and of local governments in aid of such
policies and purposes. Nothing herein shall modify or supersede the
authority or responsibility of the State Personnel Board to enforce
the provisions of the State Civil Service Act.



2075.  The department shall carry on a continuing program of
education, information, research, study, and community organization
concerning the problems of older workers in seeking, obtaining, and
holding employment without discrimination on account of age. The
department shall create such local advisory agencies as in its
judgment will aid in effectuating the purposes of this section, and
may empower them to study the problems of discrimination on account
of age and all problems relating to employment programs for older
workers, and to foster through community effort co-operation among
the various groups and elements of the population of the State and to
make recommendations to the department for the development of
policies and procedures to carry out the purposes of this section.
Such advisory agencies shall be composed of representative citizens,
serving without pay.



2076.  The department shall issue such publications and such results
of research and other activities as in its judgment will tend to
minimize or eliminate discrimination in employment on account of age.



2078.  The age limitations of the apprenticeship programs in which
the State participates shall not be considered discriminatory within
the meaning of this chapter.

back to top

2101.  (a) 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 following statutes administered by the
department:
   (1) The provisions of this division.
   (2) The provisions of any unemployment insurance law of the
federal government.
   (3) The provisions of any training allowance law of the federal
government.
   (4) The provisions of any trade readjustment allowance law of the
federal government.
   (5) The provisions of any other allowance law of the federal
government.
   (b) Nothing in this section shall be construed to preclude the
applicability of Section 470 of the Penal Code to any acts or
omissions which violate this section.



2101.5.  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.



2101.6.  (a) It is a violation of this chapter for any person 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.
   (b) It is a violation of this chapter for any person to willfully
aid or assist anyone in making a false statement or representation,
or in knowingly failing to disclose a material fact, in order to
lower or avoid any contribution, or to avoid being or remaining
subject to this division.



2102.  (a) 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.
   (b) Nothing in this section shall be construed to preclude the
applicability of Section 470 of the Penal Code to any acts or
omissions which violate this section.



2103.  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 such
worker under this division, for the purpose of paying any
contribution required under this division.



2104.  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 at any hearing under this division.




2105.  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.



2106.  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.




2107.  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 such 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.



2108.  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.


2109.  The 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 such
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, or by authorized regulations, is in violation of this
chapter.


2110.  Any employing unit, including any individual member of a
partnership 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, that knowingly withholds the deductions required by this
division from remuneration paid to its workers, and willfully fails
or is willfully financially unable to pay such deductions to the
department on the date on which they become delinquent is in
violation of this chapter.



2110.3.  Any employing unit, including any individual member of a
partnership 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, that knowingly undertakes or agrees to pay without deduction
from remuneration paid to its workers the amount of any contributions
to the Disability Fund required of the workers under this division
and that willfully fails or is willfully financially unable to pay
the amount to the department on the date on which the contributions
become delinquent is in violation of this chapter.




2110.5.  Any employing unit, including any individual member of a
partnership 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, that willfully fails to withhold in trust the deductions
required by this division from remuneration paid to its workers,
except where such employing unit undertakes or agrees to pay without
deduction from the wages of its workers the amount of worker
contributions required of its workers under this division, is in
violation of this chapter.



2110.7.  Any employing unit, including any individual member of a
partnership 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, that knowingly undertakes or agrees to pay without deduction
from remuneration paid to its workers the amount of any contributions
to the Disability Fund required of such workers under this division
and that willfully fails to hold in trust the amount of worker
contributions required of such workers under this division is in
violation of this chapter.



2111.  Except as otherwise provided in Section 1094, and except with
respect to information furnished by the department in connection
with its participation as a party or as a lien claimant in a judicial
or administrative proceeding, information obtained in the course of
administration of this division is confidential and shall not be
published or open to public inspection in any manner. Any officer or
employee of the state (including its political subdivisions), or any
former member, officer or employee or other individual, who in the
course of his or her employment or duty has or had access to returns,
reports, or documents maintained under this division, who violates
this section is in violation of this chapter.




2112.  Unless otherwise specified in subdivision (b) of Section 2101
or in Section 2114, 2115, or 2116, 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.



2113.  Nothing in this division shall prevent the department from
accepting restitution or an acceptable arrangement for restitution,
made voluntarily before the department files a criminal complaint
under Section 2101 or 2102, 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 under Section 2101 or 2102
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
under any provision of this division. The department shall by mail or
personal service give the person written notice of intent to file a
criminal complaint under Section 2101 or 2102 not less than 10 days
prior to the filing of the criminal complaint. The department may
accept restitution or an arrangement for restitution and any such
acceptance shall be in lieu of any criminal action against the
person, except that the department shall not be precluded from filing
a criminal action against any person who defaults under an
arrangement for restitution which it has accepted. For purposes of
this section, no period of time during which an arrangement for
restitution is in effect shall be a part of any limitation of the
time for commencing a criminal action. The department shall deposit
amounts received from any person under this section in the fund from
which the overpayments were made.



2114.  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.



2115.  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, is in violation
of this chapter.



2116.  It is unlawful to do any of the following:
   (a) Falsely certify the medical condition of any person in order
to obtain disability insurance benefits, including family temporary
disability insurance benefits, whether for the maker or for any other
person.
   (b) Knowingly present or cause to be presented any false or
fraudulent written or oral material statement in support of any claim
for disability insurance including family temporary disability
insurance benefits.
   (c) 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 including family temporary disability insurance
benefits unless the payment is lawful pursuant to Section 650 of the
Business and Professions Code.
   (d) Knowingly assist, abet, solicit, or conspire with any person
who engages in an unlawful act under this section.



2117.  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 one
thousand dollars ($1,000), and is also guilty of a misdemeanor and
shall, upon conviction, be fined an amount not to exceed one thousand
dollars ($1,000), or be imprisoned for not more than one year, or
both the fine and imprisonment, at the discretion of the court.




2117.5.  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 twenty thousand dollars
($20,000), or by both the fine and imprisonment, at the discretion of
the court.



2118.  Any person or employer who, with or without intent to evade,
fails to withhold, pursuant to Section 13020, or fails to pay over
any tax withheld, is guilty of a misdeameanor and, upon conviction,
shall be fined an amount not to exceed one thousand dollars ($1,000),
or imprisoned for not more than one year, or both the fine and
imprisonment, at the discretion of the court.



2118.5.  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 thereof, shall be fined an
amount not more than twenty thousand dollars ($20,000), or imprisoned
pursuant to subdivision (h) of Section 1170 of the Penal Code, or
both the fine and imprisonment, at the discretion of the court.



2119.  Any person or employer required under Section 13050 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 under
Section 13050, or regulations prescribed thereunder, is in violation
of this chapter.



2120.  Any individual required to supply information to his or her
employer under Section 13040, 13041, or 13042, 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 under Section 13020, is in violation of this chapter.




2121.  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 is in violation of this chapter.



2122.  Except as provided in Sections 2117, 2117.5, 2118, and
2118.5, a violation of this chapter 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 twenty thousand dollars ($20,000), or by
both the fine and imprisonment, at the discretion of the court.




2122.5.  Any fine imposed by the court pursuant to this chapter,
except for fines imposed under Sections 2101 and 2102, shall 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 shall be paid to
that governmental unit.



2123.  The certificate of the department to the effect that a return
or report has not been filed or that information has not been
supplied as required by Division 6 (commencing with Section 13000) is
prima facie evidence that the return or report has not been filed or
that the information has not been supplied.



2124.  The place of trial for offenses enumerated in this chapter
shall 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, except that if the defendant has no residence or principal
place of business in this state, the trial shall be held in the
County of Sacramento.



2125.  Any action or prosecution under this chapter shall be
instituted within four years after the discovery of the offense.



2126.  Any person or employing unit convicted under this chapter may
be charged the costs of investigation and prosecution at the
discretion of the court.


2127.  The prosecutor may, 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 in this code and Part 10 (commencing
with Section 17001) of Division 2 of the Revenue and Taxation Code.




2128.  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 pursuant to
the federal Immigration Reform and Control Act (Public Law 99-603),
shall not be 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.
   Nothing in this section shall be construed to limit the liability
under any provision of law of any person who engages in the
procurement or production of false or fraudulent wage statements or
similar documents to any person for purposes of legalization under
the federal Immigration Reform and Control Act.
   This section does not apply to penalties assessed or criminal
actions filed prior to May 1, 1987.
   This section does not apply where the Employment Development
Department, through independent means, discovers that an employer has
withheld personal income tax and disability insurance contributions
from workers' paychecks and has not remitted those moneys to the
department.
   The immunity from liability pursuant to this section shall apply
only to facts disclosed in the wage statement or similar document
provided commencing on or after the effective date of this section
and only until the date of the termination of the legalization
provisions for agricultural and nonagricultural workers of the
federal Immigration Reform and Control Act. However, the immunity
from liability pursuant to this section shall continue until the
cause of action is tolled by the applicable statute of limitations.




2129.  For the purposes of this chapter, "person" includes, a
claimant for benefits and any officer, employee, director, partner,
or agent having charge of the affairs of any employer or employing
unit with regard to the violation which occurred. "Person" also
includes both natural persons and legal entities. More than one
person may be charged with violations under this chapter, where
control of the affairs of the employing unit, or employer, is shared
by more than one person.

back to top

2601.  The purpose of this part is to compensate in part for the
wage loss sustained by any individual who is unable to work due to
the employee's own sickness or injury, the sickness or injury of a
family member, or the birth, adoption, or foster care placement of a
new child, and to reduce to a minimum the suffering caused by
unemployment resulting therefrom. This part shall be construed
liberally in aid of its declared purpose to mitigate the evils and
burdens that fall on the unemployed worker and his or her family.



2602.  (a) Except as otherwise provided, the provisions and
definitions of Part 1 (commencing with Section 100) of this division
apply to this part. In case of any conflict between the provisions of
Part 1 and the provisions of this part, the provisions of this part
shall prevail with respect to unemployment compensation disability
benefits, and the provisions of Part 1 shall prevail with respect to
unemployment compensation benefits.
   (b) The provisions of Chapter 6 (commencing with Section 1501) of
Part 1, of this division do not apply to this part.
   (c) Sections 312, 318, 1251, 1253, 1253.3, 1254, 1255, 1262, 1279,
1326 to 1333, inclusive, 1339, 1340, 1375 to 1378, inclusive, and
1380 do not apply to this part.



2603.  Disability benefits paid pursuant to this part shall not be
charged against an employer's account maintained pursuant to Article
4 of Chapter 4, Part 1 of this division.



2604.  Whenever the Director of Employment Development believes that
a change in contributions rate or disability benefit amounts may
become necessary to protect the solvency of the Disability Fund, he
shall at once inform the Governor and the Legislature thereof and
make recommendations accordingly. In such case the Governor may
declare an emergency and authorize the Director of Employment
Development to announce a modified scale of benefits or increased
waiting period, or other changes in regulations regarding the
eligibility for payment of benefits which the Director of Employment
Development may deem necessary to assure the solvency of the
Disability Fund; such modified regulations to be in effect until the
Governor declares the emergency at an end or until further action is
taken by the Legislature.



2605.  If at any time the Secretary of Labor or other higher
authority rules or determines that any section of this part is not in
conformity with the provisions of Title III of the Social Security
Act or Section 3302 and Section 3303 of the Federal Unemployment Tax
Act by reason of any provision contained in this part, such section
shall be immediately inoperative.



2606.  "Employment" for the purposes of this part means:
   (a) Service included in "employment" as defined by Part 1
(commencing with Section 100) of this division, except that with
respect to service for any public entity as defined by Section 605
"employment" for the purposes of this part includes only:
   (1) Service for a hospital established, maintained and operated
pursuant to Division 23 (commencing with Section 32000) of the Health
and Safety Code.
   (2) Service performed for a public housing administration agency
whether operated by state or local governmental subdivisions.
   (3) Service performed by a state employee to the extent provided
by Section 2781.
   (4) Service covered under this part by an elective coverage
agreement.
   (b) Notwithstanding any other provision of this division, all
service performed in the employ of a corporation, community chest,
fund, or foundation, in connection with the operation of a health
facility as defined in Section 1250 of the Health and Safety Code
including the institutions described in subdivision (a) of Section
1270 of the Health and Safety Code but not including county
hospitals, no part of the net earnings of which inures to the benefit
of any private shareholder or individual, no substantial part of the
activities of which is carrying on propaganda, or otherwise
attempting to influence legislation, which does not participate in,
or intervene in (including the publishing or distributing of
statements), any political campaign on behalf of any candidate for
public office and which is exempt from income tax under Section 501
(a) of the Internal Revenue Code of 1954, except service performed by
an individual as a duly ordained priest, clergyman, rabbi, rector,
vicar, pastor, or minister of religion, or by a practitioner who
heals the sick by prayer in the practice of religion, or by a reader
whose duty it is to conduct regular religious services of a religious
organization, or by a member of a religious order in the exercise of
duties required by the order, or by any other individual performing
service in the practice of religion by designation of the governing
body of a religious organization and subject to discipline by,
including removal by, the governing body.
   This section shall become operative on July 1, 1978.



2606.4.  Notwithstanding Section 632, "employment" for purposes of
this part also means service performed as a clerk-carrier in the
employ of the United States Postal Service, to the extent Congress
permits this part to be applicable to the postal service, and if
Congress permits the states to require the postal service to withhold
workers' contributions and to transmit those contributions into a
state fund for unemployment compensation disability benefits.



2606.5.  (a) "Employment" for purposes of this part also means
domestic service in a private home, local college club, or local
chapter of a college fraternity or sorority performed for an
employing unit which pays wages in cash of seven hundred fifty
dollars ($750) or more to individuals employed in such service during
any calendar quarter in the calendar year or the preceding calendar
year.
   (b) "Employment" for purposes of this part also means domestic
service comprising in-home supportive services under Article 7
(commencing with Section 12300) of Chapter 3 of Part 3 of Division 9
of the Welfare and Institutions Code, performed for an employing unit
which pays wages in cash of seven hundred fifty dollars ($750) or
more to individuals employed in such service during any calendar
quarter in the calendar year or preceding calendar year, and is one
of the following:
   (1) The recipient of such services, if the state or county makes
or provides for direct payment to a provider chosen by the recipient
or to the recipient of such services for the purchase of services,
subject to the provisions of Section 12302.2 of the Welfare and
Institutions Code.
   (2) The individual or entity with which a county contracts to
provide in-home supportive services.
   (3) Any county which hires and directs in-home supportive
personnel in accordance with established county civil service
requirements or merit system requirements for those counties not
having civil service systems.



2608.  "Disability benefit period," with respect to any individual,
means the continuous period of unemployment and disability beginning
with the first day with respect to which the individual files a valid
claim for unemployment compensation disability benefits. For the
purposes of this part, two consecutive periods of disability due to
the same or related cause or condition and separated by a period of
not more than 14 days shall be considered as one disability benefit
period.



2609.  "Valid claim" means any claim for unemployment compensation
disability benefits made in accordance with the provisions of this
code and rules and regulations adopted thereunder if the individual
is unemployed and disabled and has been paid wages in employment for
employers necessary to qualify for benefits under Section 2652.




2610.  "Disability base period," with respect to an individual who
does not have an unexpired benefit year for unemployment compensation
benefits, means for disability benefit periods beginning in October,
November, or December, the four calendar quarters ended in the next
preceding month of June; the disability base period for disability
benefit periods beginning in January, February, or March, shall be
the four calendar quarters ended in the next preceding month of
September; the disability base period for disability benefit periods
beginning in April, May, or June, shall be the four calendar quarters
ended in the next preceding month of December; the disability base
period for disability benefit periods beginning in July, August, or
September shall be the four calendar quarters ended with the next
preceding month of March.



2611.  "Disability base period," with respect to an individual who
has an unexpired benefit year for unemployment compensation benefits,
shall be:
   (a) The same as the disability base period in Section 2610 if the
individual has sufficient qualifying earnings in that disability base
period.
   (b) The same as the base period used to establish the benefit year
for unemployment compensation benefits if the individual does not
have sufficient qualifying earnings in the disability base period in
Section 2610.



2612.  Notwithstanding any other provision of law, except as
provided in subdivision (b) of Section 2611, in determining the
benefit rights of any person who cannot establish a valid claim
pursuant to Section 2652 because he or she is unemployed during the
normal disability base period established pursuant to Section 2610,
there shall be excluded from the disability base period those
quarters during which the person performed no services in employment
for 60 days or more and was actively seeking work. For all quarters
so excluded, there shall be substituted an equal number of quarters
immediately preceding the commencement of the normal disability base
period. Benefit rights under this section shall terminate for any
disability benefit period that begins when the substitution quarters
no longer contain sufficient wages to establish a valid claim under
Section 2652.


2613.  (a) The Director of Employment Development shall develop and
maintain a program of education concerning disability insurance
rights and benefits.
   (b) The director shall provide to each employer of employees
subject to this part a notice informing workers of their disability
insurance rights and benefits due to sickness, injury, or pregnancy.
The notice shall be given by every employer to each new employee
hired on or after June 1, 1988, and to each employee leaving work due
to pregnancy or nonoccupational sickness or injury on or after July
1, 1989.
   (c) Commencing January 1, 2004, the director shall provide to each
employer of employees subject to this part a notice informing
workers of their disability insurance rights and benefits due to the
employee's own sickness, injury, or pregnancy, or the employee's need
to provide care for any sick or injured family member, or the
employee's need to bond with a minor child within the first year of
the child's birth or placement in connection with foster care or
adoption. The notice shall also instruct the employee to provide
notification of the reason for taking leave in a manner consistent
with company policy. The notice shall be given by every employer to
each new employee hired on or after January 1, 2004, and to each
employee leaving work on or after July 1, 2004, due to pregnancy,
nonoccupational sickness or injury, or the need to provide care for
any sick or injured family member, or the need to bond with a minor
child within the first year of the child's birth or placement in
connection with foster care or adoption.



2614.  The director shall report to the Legislature by June 30 of
each year on the department's fraud deterrence and detection
activities.

back to top

2625.  Unemployment compensation disability benefits are payable
from the Disability Fund to individuals who are eligible to receive
such benefit payments under this part.



2626.  (a) An individual shall be deemed disabled on any day in
which, because of his or her physical or mental condition, he or she
is unable to perform his or her regular or customary work.
   (b) For purposes of this section, "disability" or "disabled"
includes:
   (1) Illness or injury, whether physical or mental, including any
illness or injury resulting from pregnancy, childbirth, or related
medical condition.
   (2) Inability to work because of a written order from a state or
local health officer to an individual infected with, or suspected of
being infected with, a communicable disease.
   (3) Acute alcoholism being medically treated or, to the extent
specified in Section 2626.1, resident status in an alcoholic recovery
home.
   (4) Acute drug-induced illness being medically treated or, to the
extent specified in Section 2626.2, resident status in a drug-free
residential facility.



2626.1.  (a) An individual who is a resident in an alcoholic
recovery home pursuant to referral or recommendation by a physician
shall be eligible for disability benefits for a period not in excess
of 30 days in any disability benefit period while receiving resident
services, if an authorized representative of the alcoholic recovery
home certifies that the individual is a resident participating in an
alcoholic recovery program which has been certified by the State
Department of Alcohol and Drug Programs. The individual shall be
eligible for disability benefits for an additional period not in
excess of 60 days if the referring physician certifies to the need of
the individual for continuing resident services.
   (b) The department shall reimburse the State Department of Alcohol
and Drug Programs from the Disability Fund, in a reasonable amount
as determined by the department, for the expense of reviewing any
alcoholic recovery program, as required by the department in the
administration of subdivision (a) which is not funded in the county
alcohol program plan provided for in Article 3 (commencing with
Section 11810) or Article 4 (commencing with Section 11830) of Part 2
of Division 10.5 of the Health and Safety Code.
   (c) Outside the State of California, an individual who is a
resident in an alcohol recovery home pursuant to referral or
recommendation by a physician shall be eligible for disability
benefits for a period not in excess of 30 days in any disability
benefit period while receiving resident services, if an authorized
representative of the alcoholic recovery home certifies that the
individual is a resident participating in an alcoholic recovery
program, licensed by or satisfying a program review by the state in
which the facility is located. The individual shall be eligible for
disability benefits for an additional period not in excess of 60 days
if the referring physician certifies to the need of the individual
for continuing resident services.


2626.2.  (a) An individual who is a resident in a drug-free
residential facility pursuant to referral or recommendation by a
physician shall be eligible for disability benefits for a period not
in excess of 45 days in any disability benefit period while receiving
resident services, if an authorized representative of the drug-free
residential facility certifies that the individual is a resident
participating in a drug-free residential facility which has satisfied
a program review by the State Department of Alcohol and Drug
Programs. The individual shall be eligible for disability benefits
for an additional period not in excess of 45 days if the referring
physician certifies to the need of the individual for continuing
resident services.
   (b) The department shall reimburse the State Department of Alcohol
and Drug Programs from the Disability Fund, in a reasonable amount
as determined by the department, for the expense of reviewing any
drug-free residential facility, as required by the department in the
administration of subdivision (a), which is not funded under the
federal Drug Abuse Office and Treatment Act of 1972 (Public Law
92-255) or in conformance with Chapter 4 (commencing with Section
11980) of Part 3 of Division 10.5 of the Health and Safety Code.
   (c) Outside the State of California, an individual who is a
resident in a drug-free residential facility pursuant to referral or
recommendation by a physician shall be eligible for disability
benefits for a period not in excess of 45 days in any disability
benefit period while receiving resident services, if an authorized
representative of the drug-free residential facility certifies that
the individual is a resident participating in a drug-free residential
program, licensed by or satisfying a program review by the state in
which the facility is located. The individual shall be eligible for
disability benefits for an additional period, but not in excess of 45
days, if the referring physician certifies to the need of the
individual for continuing resident services.



2627.  A disabled individual is eligible to receive disability
benefits equal to one-seventh of his or her weekly benefit amount for
each full day during which he or she is unemployed due to a
disability only if the director finds that:
   (a) He or she has made a claim for disability benefits as required
by authorized regulations.
   (b) He or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period with respect to which waiting period no disability benefits
are payable.
   (c) Except as provided in Sections 2626.1, 2626.2, and 2709, he or
she has submitted to such reasonable examinations as the director
may require for the purpose of determining his or her disability.
   (d) Except as provided in Section 2708.1, he or she has filed a
certificate as required by Section 2708 or 2709.



2628.  An individual is not eligible for disability benefits with
respect to any period for which the director finds that he has
received or is entitled to receive unemployment compensation benefits
under Part 1 of this division or under an unemployment compensation
act of any other state or of the Federal Government.




2629.  (a) Except as provided in this section, an individual is not
eligible for disability benefits under this part for any day of
unemployment and disability for which he or she has received, or is
entitled to receive, "other benefits" in the form of cash payments.
   (b) "Other benefits," as used in this section and Section 2629.1,
means any of the following:
   (1) Temporary disability indemnity under a workers' compensation
law of this state or of any other state or of the federal government.
   (2) Temporary disability benefits under any employer's liability
law of this state or of any other state or of the federal government.
   (3) Permanent disability benefits for the same injury or illness
under the workers' compensation law of this state, any other state,
or the federal government.
   (c) If these "other benefits" are less than the amount an
individual would otherwise receive as disability benefits under this
part, he or she shall be entitled to receive, for that day, if
otherwise eligible, disability benefits under this part reduced by
the amount of these "other benefits."
   (d) An individual shall be entitled to receive, for any day, if
otherwise eligible, disability benefits under this part reduced by
the amount of the permanent disability indemnity if the permanent
disability indemnity is less than the amount an individual would
otherwise receive as disability benefits under this part.



2629.1.  (a) Nothing in Section 2629 shall be construed to authorize
the delay of payment of unemployment compensation disability
benefits except where the claimant is currently in receipt of other
benefits or where the department has received notice that the
claimant's employer or insurer has agreed to commence the payment of
other benefits.
   (b) Notwithstanding Section 2701.5, payments shall commence within
14 days after notice to the employer or insurer under this section
unless the employer or insurer has either paid or has agreed to
commence the payment of other benefits.
   (c) Upon the filing of a claim for unemployment compensation
disability benefits, the department shall make an initial
determination as to the claimant's entitlement to other benefits for
purposes of Section 2629.
   (1) The department shall notify the claimant and the claimant's
employer if it determines that the claimant is entitled to other
benefits.
   (2) The notice to the claimant shall inform the claimant that
disability benefits will be paid pending receipt of other benefits if
the employer fails to agree to pay these other benefits within 14
days of notification of industrial injury and shall advise the
claimant of the provisions of Section 2629.
   (3) The department shall also include with the claimant's notice a
pamphlet to be provided by the Department of Industrial Relations
which meets the criteria specified in subdivision (b) of Section
139.6 of the Labor Code.
   (4) The notice to the employer shall constitute a claim for
compensation and knowledge of an injury for purposes of Section 5402
of the Labor Code, and shall inform the employer of its potential
liability for interest and penalties under this section.
   (d) If the employer or the insurance carrier disputes liability
for the payment of other benefits, or the extent thereof, the
department's right to reimbursement shall be subject to the
jurisdiction of the Workers' Compensation Appeals Board in accordance
with Part 4 (commencing with Section 5300) of Division 4 of the
Labor Code.
   (e) An employer or insurance carrier who subsequently assumes
liability or is determined to be liable for reimbursement to the
department for unemployment compensation disability benefits which
the department has paid in lieu of other benefits shall be assessed
for this liability by the department. In addition, the employer shall
pay the department interest on the disability benefits at the annual
rate provided in Section 19521 of the Revenue and Taxation Code. The
employer shall also pay a penalty of 10 percent of the amount
reimbursed to the department if the Workers' Compensation Appeals
Board finds that the failure of the employer to pay other benefits
upon notice by the department under this section was unreasonable and
a penalty has not been awarded for the delay under Section 5814 of
the Labor Code. All funds received by the department pursuant to this
section shall be deposited in the Disability Fund.
   (f) The employer shall reimburse the department in accordance with
subdivision (e) within 60 days of either voluntarily accepting
liability for other benefits or after a final award, order, or
decision of the Workers' Compensation Appeals Board.



2629.5.  To the extent permitted by federal law, excludable
restitution payments, as defined in Section 17131.1 of the Revenue
and Taxation Code, and excludable settlement payments, as defined in
Section 17131.2 of the Revenue and Taxation Code, may not be applied
to reduce the amount of disability benefits to which an individual
may otherwise be entitled under law.



2630.  (a) The Department of Child Support Services shall
periodically notify the department of individuals who are certified,
as provided in Section 17518 of the Family Code, as having support
obligations, as defined by subdivision (g) and notify the department
of any changes in the status of these individuals to ensure that the
department has a current record.
   (b) Upon receipt of the notifications referred to in subdivision
(a), the department shall determine whether the individuals have
claims for unemployment compensation disability benefits, either with
the department or under an approved voluntary plan.
   (c) If the department determines that an individual referred to in
subdivision (a) has a claim for unemployment compensation disability
benefits with an approved voluntary plan, it shall notify the
voluntary plan payer. When the Department of Child Support Services
notifies the department of any changes in the individual's status as
to his or her support obligations, the department shall in turn
notify the voluntary plan payer. Upon notification from the
department, the voluntary plan payer shall deduct and withhold the
amounts specified in Section 17518 of the Family Code from the
unemployment compensation disability benefits that would otherwise be
payable to the individual. For each withholding, the voluntary plan
payer shall deduct an amount which represents the amount withheld for
support obligations and may also deduct an administrative fee
representing actual costs, not to exceed two dollars ($2). In no
event shall the withholding and the administrative fee exceed 25
percent or a lesser amount as specified in subdivision (e) of Section
17518 of the Family Code. The voluntary plan payer shall pay the
amounts for support deducted and withheld pursuant to this section to
the appropriate certifying county.
   (d) The department shall maintain a current record of individuals
certified as owing support obligations. If the department determines
that the individual has a claim for unemployment compensation
disability benefits with the department, it shall deduct and withhold
the amounts specified in Section 17518 of the Family Code from the
unemployment compensation disability benefits that would otherwise be
payable to the individual. The department shall periodically pay the
amounts deducted and withheld to the appropriate county or to the
Department of Child Support Services as the assigned payee, as
stipulated by mutual agreement, in the interagency agreement between
the department and the Department of Child Support Services.
   (e) Amounts deducted and withheld from an individual's
unemployment compensation disability benefits in accordance with
subdivision (c) or (d) shall for all purposes be treated as if it
were paid to the individual and then paid by the individual to the
Department of Child Support Services or the appropriate certifying
county.
   (f) This section shall apply only if appropriate arrangements are
made for the Department of Child Support Services to reimburse the
department for its administrative costs for performing the functions
required of it by this section.
   (g) For purposes of this section, "support obligations" means the
child and related spousal support obligations described in the state
plan approved pursuant to Section 454 of the Social Security Act and
as that section may hereafter be amended. However, to the extent
"related spousal support obligations" may not be collected from
unemployment compensation under federal law, those obligations shall
not be included in the definition of support obligations under this
section.

back to top

2652.  An individual cannot establish a valid claim unless he has
during his disability base period been paid wages for employment by
employers of not less than three hundred dollars ($300).



2653.  Except as provided in Sections 708 and 708.5, the maximum
amount of benefits payable to an individual during any one disability
benefit period shall be 52 times his or her weekly benefit amount,
but in no case shall the total amount of the benefits payable be more
than the total wages paid to the individual during his or her
disability base period. If the benefit is not a multiple of one
dollar ($1) it shall be computed to the next higher multiple of one
dollar ($1).
   This section shall apply to periods of disability commencing on or
after January 1, 1984.



2654.  For the purpose of this article wages due to any individual
but unpaid within the time limit provided by law, shall be deemed
wages paid to such individual.



2655.  (a) Except as provided in subdivisions (b), (c), and (d), an
individual's "weekly benefit amount" shall be the amount appearing in
column B in the table set forth in this subdivision on the line of
which in column A of the table there appears the wage bracket
containing the amount of wages paid to the individual for employment
by employers during the quarter of his or her disability base period
in which wages were the highest.

  A                                         B
  Amount of wages                        Weekly
  in                                     benefit
  highest quarter                        amount
  $75-1,149.99.....................        $50
  1,150-1,174.99...................        51
  1,175-1,199.99...................        52
  1,200-1,224.99...................        53
  1,225-1,249.99...................        54
  1,250-1,274.99...................        55
  1,275-1,299.99...................        56
  1,300-1,324.99...................        57
  1,325-1,349.99...................        58
  1,350-1,374.99...................        59
  1,375-1,399.99...................        60
  1,400-1,424.99...................        61
  1,425-1,449.99...................        62
  1,450-1,474.99...................        63
  1,475-1,499.99...................        64
  1,500-1,524.99...................        65
  1,525-1,549.99...................        66
  1,550-1,574.99...................        67
  1,575-1,599.99...................        68
  1,600-1,624.99...................        69
  1,625-1,649.99...................        70
  1,650-1,674.99...................        71
  1,675-1,699.99...................        72
  1,700-1,724.99...................        73
  1,725-1,749.20...................        74

   (b) For periods of disability commencing on or after January 1,
1990, and prior to January 1, 1991, if the amount of wages paid an
individual for employment by employers during the quarter of his or
her disability base period in which these wages were highest exceeds
one thousand seven hundred forty-nine dollars and twenty cents
($1,749.20), the weekly benefit amount shall be 55 percent of these
wages divided by 13, but not exceeding two hundred sixty-six dollars
($266) or the maximum workers' compensation temporary disability
indemnity weekly benefit amount, whichever is less. If the benefit
payable under this subdivision is not a multiple of one dollar ($1),
it shall be computed to the next higher multiple of one dollar ($1).
   (c) For periods of disability commencing on or after January 1,
1991, but before January 1, 2000, if the amount of wages paid an
individual for employment by employers during the quarter of his or
her disability base period in which these wages were highest exceeds
one thousand seven hundred forty-nine dollars and twenty cents
($1,749.20), the weekly benefit amount shall be 55 percent of these
wages divided by 13, but not exceeding three hundred thirty-six
dollars ($336). If the benefit payable under this subdivision is not
a multiple of one dollar ($1), it shall be computed to the next
higher multiple of one dollar ($1).
   (d) (1) For periods of disability commencing on or after January
1, 2000, if the amount of wages paid an individual for employment by
employers during the quarter of his or her disability base period in
which these wages were highest exceeds one thousand seven hundred
forty-nine dollars and twenty cents ($1,749.20), the weekly benefit
amount shall be equal to 55 percent of these wages divided by 13, but
not exceeding the maximum workers' compensation temporary disability
indemnity weekly benefit amount.
   (2) Notwithstanding the maximum workers' compensation temporary
disability indemnity weekly benefit amount of paragraph (1) of
subdivision (d), if the benefit under this subdivision is not a
multiple of one dollar ($1), it shall be computed to the next higher
multiple of one dollar ($1).



2656.  (a) An individual eligible to receive disability benefits who
receives wages or regular wages from his or her employer during the
period of his or her disability or period of family care leave shall
be paid disability benefits for any seven-day week or partial week in
an amount not to exceed his or her maximum weekly amount which
together with the wages or regular wages does not exceed his or her
weekly wage, exclusive of wages paid for overtime work, immediately
prior to the commencement of his or her disability or period of
family care leave.
   (b) For purposes of this section, to determine the wages or
regular wages received by the eligible individual, the amount as
stated by the individual shall be presumed to be accurate. This
presumption is one affecting the burden of producing evidence.
   (c) Except as provided in subdivision (g) of Section 3303, for
purposes of periods of disability commencing on or after January 1,
1992, vacation pay is not considered wages for determining
eligibility for disability benefits.



2657.  If the remuneration of an individual is not based upon a
fixed period or duration of time or if the individual's wages are
paid at irregular intervals or in such manner as not to extend
regularly over the period of employment, the wages for any week or
for any calendar quarter for the purpose of computing an individual's
right to disability benefits shall be determined pursuant to
authorized regulations. The regulations shall, so far as possible,
secure results reasonably similar to those which would prevail if the
individual were paid his wages at regular intervals.



2658.  Notwithstanding any inconsistent provisions in this part,
except as provided in subdivision (b) of Section 2611, in determining
the benefit rights of any person who was involved in a trade dispute
during the disability base period, as determined pursuant to Section
2610, there shall be excluded from the disability base period those
quarters during which the person performed no services in employment
for 60 days or more as a result of a trade dispute. For all quarters
so excluded there shall be substituted an equal number of quarters
immediately preceding the commencement of the trade dispute. In the
event the disability base period so determined includes wages in
calendar quarters for which the records have been destroyed under
proper approval, a claimant may establish the amount of wages by
affidavit in accordance with authorized regulations. The quarter of
commencement of the trade dispute shall be counted as a completed
quarter if the director finds that the inclusion thereof would be
more equitable to the claimant.

back to top

2675.  (a) An individual shall be disqualified from receiving
benefits under this part if he or she has willfully, for the purpose
of obtaining benefits, either made a false statement or
representation, with actual knowledge of the falsity thereof, or
withheld a material fact in order to obtain any benefits under this
part.
   (b) An individual disqualified under subdivision (a) under a
determination transmitted to him or her by the department, shall be
ineligible to receive benefits from the date the disqualifying
determination was issued and for not less than seven nor more than 35
subsequent days for which he or she is otherwise eligible for
benefits under this part. When successive disqualifications under
subdivision (a) occur, the director may extend the period of
ineligibility for an additional period not to exceed 56 days.
   (c) If all or any of the assessed days of ineligibility cannot be
served because the individual is no longer otherwise eligible for
benefits under this part, the assessed days of ineligibility shall be
applied to any subsequent disability benefit period for which he or
she is otherwise eligible for benefits. No disqualification under
this subdivision shall be applied, however, to any day of eligibility
which falls beyond the three-year period next succeeding the date
upon which the determination was mailed or served by the department.
   (d) The amendments made to this section by the act adding this
subdivision shall apply to disqualifying determinations issued on or
after January 1, 1992.



2676.  An individual who is disqualified from receiving unemployment
compensation benefits under Sections 1256, 1257, 1260, 1261, and
1263 shall be presumed to be ineligible to receive disability
benefits under this part for the same period or periods unless he or
she establishes to the satisfaction of the director that he or she is
suffering a bona fide illness or injury or claiming a period of
family care leave and the director finds that there is good cause for
paying disability benefits.



2677.  An individual who is otherwise eligible for benefits under
this part shall not be disqualified from receiving such benefits
because of a disqualification from receiving unemployment
compensation benefits under Section 1262.



2678.  An individual shall be disqualified from receiving benefits
under this part while he is confined, pursuant to commitment or court
order or certification, in an institution or other place, as a
dipsomaniac, drug addict or sexual psychopath.




2679.  Notwithstanding any other provision of law, an individual who
is otherwise eligible shall not be disqualified for benefits under
this part for the day on which he or she or a family member, as
defined in Chapter 7 (commencing with Section 3300), for whom the
individual is providing care, died.



2680.  (a) An individual shall be ineligible for benefits under this
part for any day during which he or she is incarcerated in any
federal, state, or municipal penal institution, jail, medical
facility, public or private hospital, or in any other place because
of a criminal violation of a federal, state, or other municipal law
or ordinance. For purposes of this section, "incarceration" includes
any time spent in the custody of law enforcement authorities upon
adjudication or conviction by a court of competent jurisdiction.
   (b) This section shall apply only with respect to periods of
incarceration commencing on or after January 1, 1994.




2681.  (a) Any individual who commits a crime shall be ineligible
for benefits under this part if the individual is disabled due to an
illness or injury caused by, or arising out of the commission of,
arrest, investigation, or prosecution of any crime that results in a
felony conviction.
   (b) For purposes of this section, a plea or verdict of guilty, or
a felony conviction following a plea of nolo contendere or no contest
shall be considered to be a felony conviction under this part,
irrespective of whether an order granting probation or suspending the
imposition or execution of any sentence is issued.
   (c) This section shall apply only with respect to convictions
rendered on or after January 1, 1994, regardless of the date the
disability commenced, or benefits were paid.

back to top

2701.  Disability benefits shall be paid by the department through
public employment offices or other agencies approved by the director.



2701.5.  The department shall issue the initial payment for
unemployment compensation disability benefits to a monetarily
eligible claimant who is otherwise determined eligible by the
department under applicable law and regulation within 14 days of
receipt of his or her properly completed first disability claim.



2702.  Minors who are eligible for disability benefits may be paid
and receive such benefits in their own right and a receipt signed by
a minor shall be valid and binding in all respects.



2703.  The establishment of a disability benefit period for
unemployment compensation disability benefits shall not establish a
benefit year for unemployment compensation benefits and the filing of
a valid claim for one shall not establish a valid claim for the
other. Wages used to establish a valid claim for disability benefits
may be used to establish a subsequent claim for disability benefits
or unemployment compensation benefits provided such wages were paid
in the base period applicable to the subsequent claim.



2705.  Where an individual who would be eligible to receive
disability benefits dies before making a claim therefor, the director
may in accordance with authorized regulations allow the filing of a
claim for such benefits by a person legally entitled thereto under
Section 1341.



2705.1.  Where an individual who would be eligible to receive
disability benefits is mentally unable to make a claim therefor, the
director shall, in accordance with authorized regulations, allow the
filing of a claim for these benefits by the spouse or domestic
partner of the individual, in the absence of any other legally
authorized representative of the individual. A payment shall be made
upon affidavit executed by the spouse or domestic partner or person
or persons claiming to be entitled to the benefits and the receipt of
the affidavit or affidavits shall fully discharge the Director of
Employment Development from any further liability with reference to
the payments, without the necessity of inquiring into the truth of
any of the facts stated in the affidavit.
   For the purposes of this section "mentally unable to make a claim"
shall be limited to those cases in which the individual is certified
by a healing arts practitioner specified in Sections 2708 and 2709
to be mentally unable to make a claim pursuant to this part.




2706.  Claims for disability benefits shall be made in accordance
with authorized regulations of the Director of Employment
Development. Each employer shall post and maintain in places readily
accessible to individuals in his service printed statements
concerning such regulations and shall make available to each such
individual copies of such printed statements, regulations or matters
relating to claims for disability benefits as the Director of
Employment Development may prescribe. Such printed statements shall
be supplied to each employer by the Director of Employment
Development without cost to the employer.



2706.1.  A first claim, accompanied by a certificate on a form
furnished by the department to the claimant, shall be filed not later
than the 41st consecutive day following the first compensable day of
unemployment and disability with respect to which the claim is made
for benefits, which time shall be extended by the department upon a
showing of good cause. If a first claim is not complete, the claim
form shall be returned to the claimant for completion and it shall be
completed and returned not later than the 10th consecutive day after
the date it was mailed by the department to the claimant, except
that such time shall be extended by the department upon a showing of
good cause.


2706.2.  Any continued medical certification shall be submitted to
the department within 20 days of the date the claimant is issued a
notice of final payment or departmental request for additional
medical certification. The 20-day time limit shall be extended by the
department upon a showing of good cause.



2707.  The department shall give a notice of the filing of a first
claim for each disability benefit period to the employing unit by
which the claimant was last employed immediately preceding the filing
of such claim.


2707.1.  Within two working days after receipt of the notice
provided for in Section 2707, or if there has been a termination of
the claimant's service within five days after such termination,
whichever is the later, the last employer shall notify the department
of any information known to him which may bear upon the eligibility
of the claimant.



2707.2.  The department shall consider the facts submitted by the
employer pursuant to Section 2707.1 and make a determination as to
the eligibility of the claimant for benefits. The department shall
promptly notify the claimant of the determination and the reasons
therefor. The claimant may appeal therefrom to an administrative law
judge within 20 days from mailing or personal service of the notice
of determination. The 20-day period may be extended for good cause.
The director shall be an interested party to any appeal.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.




2707.3.  (a) Except as provided in subdivision (b) of this section,
upon the filing of a claim for unemployment compensation disability
benefits, the Employment Development Department shall promptly make a
computation on the claim which shall set forth the maximum amount of
benefits potentially payable during the disability benefit period
and the weekly benefit amount. The Employment Development Department
shall promptly notify the claimant of the computation.
   (b) No computation shall be made on a claim of an employee for
disability benefits under an approved self-insured plan if the
uninterrupted period of disability for such claim does not exceed the
waiting period prescribed for benefits from the Disability Fund
under subdivision (b) of Section 2627.



2707.4.  The claimant may, within 20 days after the mailing or
personal service of the notice of computation or recomputation,
protest the accuracy of the computation or recomputation. The 20-day
period may be extended for good cause. The department shall consider
any such protest and shall promptly notify the claimant of the
recomputation or denial of recomputation. The claimant may appeal
from a notice of denial of recomputation in the manner prescribed in
Section 2707. 2. The director shall be an interested party to any
appeal.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.



2707.5.  (a) The department may for good cause reconsider any
determination provided for in this part prior to the filing of an
appeal therefrom, or within 30 days after an appeal to an
administrative law judge is filed. The department shall promptly
notify the claimant of any reconsidered determination, and the
claimant may appeal therefrom in the manner prescribed in Section
2707.2. The director shall be an interested party to any appeal.
   (b) The department may for good cause reconsider any computation
or recomputation provided for in this part within one year from the
beginning date of the disability benefit period to which the notice
of computation or recomputation relates, except that no recomputation
may be considered with respect to any issue considered or under
consideration in an appeal taken from a denial of recomputation. The
department shall promptly notify the claimant of the recomputation.
The claimant may protest the accuracy of the recomputation as
prescribed in Section 2707.4.



2707.6.  Notices, protests, and information required under this
article shall be submitted in accordance with authorized regulations.



2708.  (a) (1) In accordance with the director's authorized
regulations, and except as provided in subdivision (c) and Sections
2708.1 and 2709, a claimant shall establish medical eligibility for
each uninterrupted period of disability by filing a first claim for
disability benefits supported by the certificate of a treating
physician or practitioner that establishes the sickness, injury, or
pregnancy of the employee, or the condition of the family member that
warrants the care of the employee. For subsequent periods of
uninterrupted disability after the period covered by the initial
certificate or any preceding continued claim, a claimant shall file a
continued claim for those benefits supported by the certificate of a
treating physician or practitioner. A certificate filed to establish
medical eligibility for the employee's own sickness, injury, or
pregnancy shall contain a diagnosis and diagnostic code prescribed in
the International Classification of Diseases, or, where no diagnosis
has yet been obtained, a detailed statement of symptoms.
   (2) A certificate filed to establish medical eligibility of the
employee's own sickness, injury, or pregnancy shall also contain a
statement of medical facts including secondary diagnoses when
applicable, within the physician's or practitioner's knowledge, based
on a physical examination and a documented medical history of the
claimant by the physician or practitioner, indicating the physician's
or practitioner's conclusion as to the claimant's disability, and a
statement of the physician's or practitioner's opinion as to the
expected duration of the disability.
   (b) An employee shall be required to file a certificate to
establish eligibility when taking leave to care for a family member
with a serious health condition. The certificate shall be developed
by the department. In order to establish medical eligibility of the
serious health condition of the family member that warrants the care
of the employee, the information shall be within the physician's or
practitioner's knowledge and shall be based on a physical examination
and documented medical history of the family member and shall
contain all of the following:
   (1) A diagnosis and diagnostic code prescribed in the
International Classification of Diseases, or, where no diagnosis has
yet been obtained, a detailed statement of symptoms.
   (2) The date, if known, on which the condition commenced.
   (3) The probable duration of the condition.
   (4) An estimate of the amount of time that the physician or
practitioner believes the employee is needed to care for the child,
parent, spouse, or domestic partner.
   (5) (A) A statement that the serious health condition warrants the
participation of the employee to provide care for his or her child,
parent, spouse, or domestic partner.
   (B) "Warrants the participation of the employee" includes, but is
not limited to, providing psychological comfort, and arranging "third
party" care for the child, parent, spouse, or domestic partner, as
well as directly providing, or participating in, the medical care.
   (c) The department shall develop a certification form for bonding
that is separate and distinct from the certificate required in
subdivision (a) for an employee taking leave to bond with a minor
child within the first year of the child's birth or placement in
connection with foster care or adoption.
   (d) The first and any continuing claim of an individual who
obtains care and treatment outside this state shall be supported by a
certificate of a treating physician or practitioner duly licensed or
certified by the state or foreign country in which the claimant is
receiving the care and treatment. If a physician or practitioner
licensed by and practicing in a foreign country is under
investigation by the department for filing false claims and the
department does not have legal remedies to conduct a criminal
investigation or prosecution in that country, the department may
suspend the processing of all further certifications until the
physician or practitioner fully cooperates, and continues to
cooperate with the investigation. A physician or practitioner
licensed by and practicing in a foreign country who has been
convicted of filing false claims with the department may not file a
certificate in support of a claim for disability benefits for a
period of five years.
   (e) For purposes of this part:
   (1) "Physician" has the same meaning as defined in Section 3209.3
of the Labor Code.
   (2) "Practitioner" means a person duly licensed or certified in
California acting within the scope of his or her license or
certification who is a dentist, podiatrist, or a nurse practitioner,
and in the case of a nurse practitioner, after performance of a
physical examination by a nurse practitioner and collaboration with a
physician and surgeon, or as to normal pregnancy or childbirth, a
midwife or nurse midwife, or nurse practitioner.
   (f) For a claimant who is hospitalized in or under the authority
of a county hospital in this state, a certificate of initial and
continuing medical disability, if any, shall satisfy the requirements
of this section if the disability is shown by the claimant's
hospital chart, and the certificate is signed by the hospital's
registrar. For a claimant hospitalized in or under the care of a
medical facility of the United States government, a certificate of
initial and continuing medical disability, if any, shall satisfy the
requirements of this section if the disability is shown by the
claimant's hospital chart, and the certificate is signed by a medical
officer of the facility duly authorized to do so.
   (g) Nothing in this section shall be construed to preclude the
department from requesting additional medical evidence to supplement
the first or any continued claim if the additional evidence can be
procured without additional cost to the claimant. The department may
require that the additional evidence include any or all of the
following:
   (1) Identification of diagnoses.
   (2) Identification of symptoms.
   (3) A statement setting forth the facts of the claimant's
disability. The statement shall be completed by any of the following
individuals:
   (A) The physician or practitioner treating the claimant.
   (B) The registrar, authorized medical officer, or other duly
authorized official of the hospital or health facility treating the
claimant.
   (C) An examining physician or other representative of the
department.



2708.1.  (a) Except as provided in subdivision (b), where an
individual is entitled to receive unemployment compensation
disability benefits reduced by the amount of temporary workers'
compensation received for any day under Section 2629, it shall not be
necessary that he or she obtain a certificate of a physician as
required by subdivision (a) of Section 2708 to receive the reduced
amount of disability benefits for that day, provided that the
claimant submits evidence to the department of receipt of temporary
disability benefits under a workers' compensation law for that day.
   (b) This section does not apply to Chapter 7 (commencing with
Section 3300).



2709.  If any individual in good faith adheres to the teachings of
any bona fide church, sect, denomination or organization and in
accordance with its principles depends for healing entirely upon
prayer or spiritual means, no medical examination shall be required,
but in lieu thereof the director may accept the certificate of a duly
authorized and accredited practitioner of that bona fide church,
sect, denomination or organization as to the disability of the
claimant, or the serious health condition of the family member that
warrants the care of the individual, for purposes of Chapter 7
(commencing with Section 3300) of Part 2, and the estimated duration
of such disability, and no authorized regulation prescribing the
manner of proof of illness, injury, or serious health condition shall
discriminate against that individual.



2712.  Whenever an individual is entitled to benefits under this
part but there is a dispute whether such benefits are payable from
the Disability Fund or from one or another voluntary plan, benefits
shall be paid to the individual, pursuant to authorized regulations,
from the source against which his claim was first filed, at not less
than the Disability Fund rate, pending the determination of the
dispute. The appeals board may prescribe by regulation the time,
manner, method, and procedure through which such disputes may be
determined by administrative law judges and the appeals board. If it
is finally determined that the benefits should have been paid from
one of said sources other than the one which paid the benefits,
reimbursement shall be promptly made from the Disability Fund or the
voluntary plan, as the case may be, and the claimant shall be
promptly paid the accumulated excess, if any, to which he is
entitled. Reimbursement shall also be made to the extent of actual
liability for benefits from one to another of the above mentioned
sources when it is determined that benefits have been paid in error
from one source which should have been paid from another.



2712.5.  (a) If, in a disputed coverage proceeding under Section
2712 a final decision of an administrative law judge or of the
appeals board finds that an employer or insurer shall reimburse the
Disability Fund and the employer or insurer fails to pay all or any
part of the reimbursement within 15 days after the decision of an
administrative law judge or of the appeals board becomes final, the
director shall assess the unpaid amount against the employer or the
insurer. The provisions of Article 8 (commencing with Section 1126)
of Chapter 4 of Part 1 with respect to the assessment of
contributions shall apply to the recovery of the unpaid amount. The
provisions of Chapter 7 (commencing with Section 1701) of Part 1 with
respect to the collection of contributions shall apply to the
recovery of unpaid amounts under this section. Amounts so collected
shall be deposited in the Disability Fund.
   (b) The provisions of Article 9 (commencing with Section 1176) of
Chapter 4 of Part 1 shall apply to amounts collected under this
section and to amounts reimbursed to the Disability Fund after a
final decision by an administrative law judge or the appeals board in
a disputed coverage proceeding under Section 2712.



2713.  In proceedings under this part the claimant, upon a showing
of good cause, may request a closed hearing except that the last
employer and each base period employer of the claimant shall be
entitled to participate in any such hearing.




2714.  All medical records of the department obtained under this
part, except to the extent necessary for the proper administration of
this part, or as provided elsewhere in law shall be confidential and
shall not be published or be open to public inspection in any manner
revealing the identity of the claimant or family member, or the
nature or cause of his or her disability. Medical records that are
disclosed shall be disclosed only pursuant to Section 1095, and shall
remain confidential.

back to top

2735.  Any person who is overpaid any amount as benefits under this
part is liable for the amount overpaid unless:
   (a) The overpayment was not due to fraud, misrepresentation or
wilful nondisclosure on the part of the recipient, and
   (b) The overpayment was received without fault on the part of the
recipient, and its recovery would be against equity and good
conscience.


2735.1.  If the director finds that an individual has been overpaid
unemployment compensation disability benefits because he or she
willfully, for the purpose of obtaining unemployment compensation
disability benefits, either made a false statement or representation,
with actual knowledge of the falsity thereof, or withheld a material
fact, the director shall assess against the individual an amount
equal to 30 percent of the overpayment amount. For the purpose of
collection, an assessment made pursuant to this section may be
treated as an overpayment. Assessments collected under this section
shall be deposited in the Unemployment Compensation Disability Fund.
No penalty under this section shall be assessed with regard to any
false statement or representation made prior to January 1, 1986.




2735.5.  No claim of overpayment shall be based upon the
disallowance by the Workmen's Compensation Appeals Board of a claim
of lien filed under Section 4903 of the Labor Code, or the allowance
of such lien for less than the amount claimed, or upon the approval
by the said appeals board of a compromise and release agreement
providing for the allowance of such lien in an amount less than the
claim.



2736.  The Director of Employment Development shall determine the
amount of the overpayment and shall notify the recipient of the basis
of the overpayment determination. In the absence of fraud,
misrepresentation or willful nondisclosure, notice of the overpayment
determination shall be mailed to or personally served on the
recipient within two years after the beginning of the disability
benefit period for which the overpayment was made.



2737.  Within 20 days from the date of mailing or serving of the
notice of overpayment determination, the person affected may file an
appeal to an administrative law judge. The director shall be an
interested party to any such appeal. The administrative law judge,
after affording reasonable opportunity for a fair hearing, shall
unless the appeal is withdrawn, affirm, reverse, modify, or set aside
the findings set forth in the notice of overpayment determination.
The party and the director shall be notified of the administrative
law judge's decision, together with his reasons therefor, which shall
be final unless within 20 days from the date of notification or
mailing of the decision a further appeal is initiated to the appeals
board pursuant to Section 1336. The 20-day period for an appeal to
the administrative law judge or to the appeals board may be extended
for good cause.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.



2738.  The Appeals Board shall review an appeal from an overpayment
determination as provided in Sections 1336 and 1337 and determine
what amount, if any, shall be recovered.



2739.  The Director of Employment Development, subject to this
article, may do any or all of the following in the recovery of
overpayments of disability benefits:
   (a) File a civil action against the liable person for the recovery
of the amount of the overpayment within one year after any of the
following, or, in cases where the individual has been overpaid
benefits due to fraud, misrepresentation, or nondisclosure as
described in Section 2735.1, within three years of any of the
following:
   (1) The mailing or personal service of the notice of overpayment
determination if the person affected does not file an appeal to an
administrative law judge.
   (2) The mailing of the decision of the administrative law judge if
the person affected does not initiate a further appeal to the
appeals board.
   (3) The date of the decision of the appeals board.
   (b) Initiate proceedings for a summary judgment against the liable
person. However, this subdivision applies only where the director
has found, pursuant to Section 2735, that the overpayment shall not
be waived because it was due to fraud, misrepresentation, or willful
nondisclosure on the part of the recipient. The director may, not
later than three years after the overpayment became final, file with
the clerk of the proper court in the county in which the claimant
resides, a certificate containing all of the following:
   (1) The amount due, including the assessment made under Section
2735.1, plus interest from the date that the initial determination of
overpayment was made pursuant to Section 2735.
   (2) A statement that the director has complied with all of the
provisions of this article prior to the filing of the certificate.
   (3) A request that judgment be entered against the liable person
in the amount set forth in the certificate.
   The clerk, immediately upon filing of the certificate, shall enter
a judgment for the State of California against the liable person in
the amount set forth in the certificate.
   For purposes of this subdivision only, an overpayment is final and
due and payable after one of the following:
   (A) The liable person has not filed an appeal pursuant to Section
2737.
   (B) The liable person has filed an appeal to an administrative law
judge and a decision of the administrative law judge upholding the
overpayment has become final.
   (C) The liable person has filed an appeal to the appeals board and
the decision of the appeals board upholding the overpayment has
become final because the liable person has not sought judicial review
within the six-month period provided by Section 410.
   (c) Reduce or vacate a summary judgment by filing a certificate to
that effect with the clerk of the proper court.
   (d) Offset the amount of the overpayment received by the liable
person against any amount of disability benefits to which he or she
may become entitled under this division within six years of the date
of mailing or personal service of the notice of overpayment
determination.


2739.1.  An abstract of judgment obtained pursuant to subdivision
(a) or (b) of Section 2739, or a copy thereof, may be recorded with
the county recorder of any county. From the time of recording, the
judgment shall constitute a lien against all real or personal
property of the liable person in that county owned by the liable
person at the time, or which the liable person may afterwards, but
before the lien expires, acquire. The lien shall have the force,
effect, and priority of a judgment lien and shall continue for 10
years from the time of recording of the abstract of judgment obtained
pursuant to subdivision (a) or (b) of Section 2739, unless sooner
released or otherwise discharged.
   The lien may, within 10 years from the date of recording of the
abstract of judgment or within 10 years from the date of the last
extension of the lien in the manner provided, be extended by
recording a new abstract in the office of the county recorder of any
county. From the date of the recording, the lien shall be extended
for 10 years unless sooner released or otherwise discharged.
   Execution shall issue upon the judgment upon request of the
director in the same manner as execution may issue upon other
judgments. Sales shall be held under the execution as prescribed in
the Code of Civil Procedure. In all proceedings under this section,
the director or his or her authorized agents may act on behalf of the
state.


2739.2.  (a) If an abstract has been recorded as provided in Section
2739.1 and the lien, including any interest, costs, and penalty has
been satisfied in full, the department shall, pursuant to Section
724.050 of the Code of Civil Procedure do all of the following:
   (1) File an acknowledgment of satisfaction of judgment with the
court.
   (2) Serve an acknowledgment of satisfaction of judgment on the
claimant. Service shall be made personally or by mail.
   (3) Record an acknowledgment of satisfaction of judgment in the
office of the county recorder where the abstract of judgment is
recorded.
   (b) If an acknowledgment of satisfaction of judgment is recorded,
the cost of recording shall be an obligation of the claimant and may
be collected from the claimant in any manner provided by law for the
collection of the benefit overpayment.
   (c) If payment is made by check, any action specified in
subdivision (a) shall not be required until the check has been paid
by the financial institution upon which it was drawn.



2739.5.  Notwithstanding any other provision of law to the contrary,
the Franchise Tax Board shall aid the director in the recovery of
overpayments of disability benefits through the exchange of
information.


2740.  No person shall be liable for the amount of benefits received
where the benefits were paid pursuant to an administrative law judge'
s decision which affirmed an initial determination or in accordance
with a final decision of the appeals board, regardless of any further
appeal.


2741.  Any claim of lien filed with the Workmen's Compensation
Appeals Board under the provisions of Section 4903 of the Labor Code
shall be fully discharged and satisfied by payment of the amount of
such lien allowed by the said appeals board under the provisions of
Section 4904 of said code or the amount specified in any compromise
and release agreement filed and approved by the said appeals board
pursuant to Sections 5000 through 5004 of said code.



2742.  The director shall enforce collection of any judgment
obtained by him or her under subdivision (a) or subdivision (b), or
both, of Section 2739. Amounts collected under this section shall be
deposited in the fund from which the overpayment was made.

back to top

2765.  Notwithstanding any inconsistent provisions of this part the
benefit rights of trainees shall be determined in accordance with the
provisions of this article for the periods and with respect to the
matters specified in this article. Except as otherwise provided in
this article all other provisions of this part shall continue to be
applicable in connection with such benefits.



2766.  "Military service" as used in this article means active
service in the land or naval forces of the United States, but the
service of an individual in any reserve component of the land or
naval forces of the United States who is ordered to active duty in
any such force for a period of 30 days or less shall not be deemed
active service in that force during that period.



2767.  "Trainee" as used in this article means an individual who
entered military service after April 1, 1940, and who continued such
service for not less than 90 consecutive days.



2768.  When any trainee has an unexpired benefit year for disability
benefits at the time of induction into the armed forces, the
unexpended balance of disability benefits remaining to his account
shall be reestablished beginning with the first day of the first week
succeeding the date of his termination of service. The balance shall
be paid at a weekly rate in accordance with Section 2655. In the
event the records relating to the unexpended balance have been
destroyed under proper approval, the trainee may establish the
unexpended balance by affidavit as provided by authorized regulation.
Whenever this balance is exhausted the trainee may file a claim and
his disability base period shall be determined in accordance with
Sections 2770 and 2610 or Section 2611. All reestablished balances
shall lapse 65 weeks after termination of military service.



2769.  The filing of a valid claim for disability benefits by a
trainee shall establish a disability benefit period.



2770.  Except when subdivision (b) of Section 2611 is applicable, in
determining the benefit rights of trainees the disability base
period shall exclude those quarters during which the trainee was in
military service 60 days or more. For all quarters so excluded there
shall be substituted an equal number of quarters immediately
preceding the trainee's entry into military service. In the event the
base period so determined includes wages in calendar quarters for
which the records have been destroyed under proper approval, the
claimant may establish the amount of the wages by affidavit in
accordance with authorized regulation. The quarter of entry into
military service shall be counted as a completed quarter if the
director finds that the inclusion thereof would be more equitable to
the trainee.



2771.  No disqualification shall be applied to any trainee after the
termination of his military service, by reason of any act or course
of action on his part prior to the date of his entry into such
service.


2772.  Notwithstanding any inconsistent provision of this part, any
trainee who was a resident of this state at the time of his entrance
into the military service, who is a resident of this state at the
time he applies for disability compensation benefits under this
section, and who has been disabled in the military service and is
eligible to receive disability compensation from the federal
government for such disability, shall be eligible, upon his discharge
from the military service, to receive disability compensation
benefits under Section 2655 from the time he is determined by the
federal government to be eligible for disability compensation
payments from the federal government until such time as he begins to
receive his disability compensation payments from the federal
government.
   Such trainee's weekly benefit amount shall be the maximum amount
specified in Section 2655 or the amount of the disability
compensation which he is eligible to receive from the federal
government, whichever is smaller.
   Each trainee receiving any benefits pursuant to this section shall
repay to the state the amount received as benefits hereunder. Each
trainee, as a condition of receiving benefit hereunder, shall assign
to the state the disability compensation which he is eligible to
receive from the federal government to the extent that he receives
benefits from the state pursuant to this section and shall enter into
a contract with the director, in a form prescribed by the director,
under which the trainee will be obligated to repay the state over a
period of not more than one year following the date he first receives
disability compensation from the federal government for his
disability. Repayments made by such trainees shall be deposited by
the director in the General Fund.