California Unemployment Insurance Code

back to top

1.  This act is known and may be cited as the Unemployment Insurance
Code.


2.  The provisions of this code insofar as they are substantially
the same as existing statutory provisions relating to the same
subject matter shall be construed as restatements and continuations,
and not as new enactments.


3.  Any action or proceeding commenced before this code takes
effect, or any right accrued, is not affected by this code, but all
procedure taken shall conform to the provisions of this code as far
as possible.


4.  Unless the context otherwise requires, the general provisions
hereinafter set forth govern the construction of this code.



5.  Division, part, chapter, article, and section headings do not in
any manner affect the scope, meaning, or intent of the provisions of
this code.


6.  Whenever a power is granted to, or a duty imposed on any person
or board by any provision of this code, it may be exercised or
performed by any deputy or person authorized by the person or board
to whom the power is granted or on whom the duty is imposed, unless
it is expressly provided that the power or duty shall be exercised or
performed only by the person or board to whom the power is granted
or on whom the duty is imposed.



7.  Whenever any reference is made to any portion of this code or of
any other law, the reference applies to all amendments and additions
thereto, now or hereafter made.



8.  "Writing" includes any form of recorded message capable of
comprehension by ordinary visual means.  Whenever any notice, report,
petition, permit, statement, or record is required by this code, it
shall be made in writing in the English language.




9.  "Section" means a section of this code unless some other statute
is specifically mentioned, and "subdivision" means a subdivision of
the section in which the term occurs unless some other section is
expressly mentioned.


10.  The present tense includes the past and future tenses; and the
future, the present.



11.  The masculine gender includes the feminine and neuter.



12.  The singular number includes the plural and the plural the
singular.


13.  "City" includes incorporated city, city and county, municipal
corporation, municipality, town and incorporated town.



14.  "County" includes city and county.



15. "Shall" is mandatory and "may" is permissive.



16. "Oath" includes affirmation and written certification or
declaration subscribed to be true under penalty of perjury.



17.  "Signature" or "subscription" includes mark.  The mark shall be
made as required in the Civil Code.



18.  If any provision of this code, or its application to any person
or circumstance is held invalid, the remainder of the code, or the
application of the provision to other persons or circumstances is not
affected.


19.  All persons who, at the time this code goes into effect, hold
office under any of the acts repealed by this code, which offices are
continued by this code, continue to hold them according to their
former tenure.


20.  Whenever any reference is made to any person, officer, board,
or agency by any provision of this code, the reference applies to any
other person, officer, board, or agency to whom the functions vested
in the person, officer, board, or agency referred to are
transferred.



21.  The Legislature hereby declares its intent that the term
"workmen's compensation" shall hereafter also be known as "workers'
compensation."  In furtherance of this policy it is the desire of the
Legislature that references to the term "workmen's compensation" in
this code be changed to "workers' compensation" when such code
sections are being amended for any purpose.  This act is declaratory
and not amendatory of existing law.

back to top

100.  As a guide to the interpretation and application of this
division the public policy of this State is declared as follows:
   Experience has shown that large numbers of the population of
California do not enjoy permanent employment by reason of which their
purchasing power is unstable.  This is detrimental to the interests
of the people of California as a whole.
   The benefit to all persons resulting from public and private
enterprise is realized in the final consumption of goods and
services.  It is contrary to public policy to permit the supply of
consumption goods and services at prices which do not provide against
that harm to the population consequent upon periods of unemployment
of those who contribute to the production and distribution of such
goods and services.
   Experience has shown that private charity and local relief cannot
alone prevent the effects of unemployment.  Experience has shown that
if the State awaits the coming of excessive unemployment it can
neither create immediately the organization necessary to orderly,
economical and effective relief nor bear the financial burden of
relief without disrupting its whole system of ordinary revenues and
without jeopardizing its credit.
   The Legislature therefore declares that in its considered judgment
the public good and the general welfare of the citizens of the State
require the enactment of this measure under the police power of the
State, for the compulsory setting aside of funds to be used for a
system of unemployment insurance providing benefits for persons
unemployed through no fault of their own, and to reduce involuntary
unemployment and the suffering caused thereby to a minimum.
   It is the intent of the Legislature that unemployed persons
claiming unemployment insurance benefits shall be required to make
all reasonable effort to secure employment on their own behalf.



101.  This part is a part of a national plan of unemployment
reserves and social security, and is enacted for the purpose of
assisting in the stabilization of employment conditions.  The
imposition of the tax herein imposed upon California industry alone,
without a corresponding tax being imposed upon all industry in the
United States, would, by the corresponding penalty upon California
industry, defeat the very purposes of this law as set forth in this
article.  Therefore when existing federal legislation which provides
for a tax upon the payment of wages by employers in this State,
against which all or any part of the employer contributions required
under this part may be credited is repealed, amended, interpreted,
affected or otherwise changed in such manner that no portion of such
contributions may be thus credited, then upon the date of such
change, the provisions of this part requiring employer contributions
and providing for payment of unemployment compensation benefits shall
cease to be operative and any assets in the Unemployment Fund or
Unemployment Administration Fund shall in the discretion of the State
Treasurer be held in the then existing depositaries or otherwise in
the State Treasury.  In the case of the Unemployment Administration
Fund, such money may thereafter be dealt with by the State Treasurer
pursuant to the conditions of the grant thereof to the State by the
United States Government or agency thereof.



102.  All the rights, privileges or immunities conferred by this
division or by acts deemed pursuant thereto shall exist subject to
the power of the Legislature to amend or repeal this division at any
time.

back to top

125.  Except where the context otherwise clearly indicates, the
definitions set forth in this article shall govern the construction
of the provisions of this division.



125.3.  "American aircraft" means an aircraft registered under the
laws of the United States.



125.4.  "American employer" means any of the following:
   (a) An individual who is a resident of the United States.
   (b) A partnership, if two-thirds or more of the partners are
residents of the United States.
   (c) A trust, if all of the trustees are residents of the United
States.
   (d) A corporation organized under the laws of the United States or
of any state.
   (e) A limited liability company organized under the laws of the
United States or of any state.
   (f) Any Indian tribe as described by subsection (u) of Section
3306 of Title 26 of the United States Code.



125.5.  "American vessel" means any vessel documented or numbered
under the laws of the United States, and includes any vessel which is
neither documented or numbered under the laws of the United States
nor documented under the laws of any foreign country, if its crew is
employed solely by one or more citizens or residents of the United
States or corporations organized under the laws of the United States
or of any state.



126.  "Appeals Board" means the California Unemployment Insurance
Appeals Board.



127.  "Authorized regulations" means regulations promulgated
pursuant to the provisions of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, as
modified by the provisions of this division, and "regulation"
includes the amendment or repeal of a regulation.



128.  "Benefits" means the money payments payable to an individual,
pursuant to this division, with respect to his unemployment and
includes unemployment compensation benefits, federal-state extended
benefits, or extended duration benefits, or disability benefits, or
all of them.



129.  "Calendar quarter" means the period of three consecutive
calendar months ending on March 31st, June 30th, September 30th, or
December 31st, or the equivalent thereof as may be prescribed by
authorized regulations.


130.  "Contingent fund" means the Department of Employment
Development Contingent Fund.



130.5.  "Benefit Audit Fund" means the Employment Development
Department Benefit Audit Fund.



131.  "Contributions" means the money payments to the Unemployment
Fund, Employment Training Fund, or Unemployment Compensation
Disability Fund which are required by this division.



133.  Except as otherwise provided, "department" means the
Employment Development Department, which also may be referred to as
the Department of Employment Development.



133.5.  "Department of Benefit Payments" or "State Department of
Benefit Payments" shall be construed to refer to and mean the
Employment Development Department.



134.  Except as otherwise provided, "director" means the Director of
Employment Development.



134.1.  "Director of Benefit Payments" shall be construed to refer
to and mean Director of Employment Development.



134.5.  "Disability fund" means the "Unemployment Compensation
Disability Fund."



135.  (a) "Employing unit" means any individual or type of
organization that has in its employ one or more individuals
performing services for it within this state, and includes but is not
limited to, the following individuals and organizations:
   (1) Any individual or type of organization or public entity that
elects coverage pursuant to any provision of this division.
   (2) Any joint venture, partnership, association, trust, estate,
joint stock company, insurance company, corporation whether domestic
or foreign, limited liability company, whether domestic or foreign,
community chest, fund, or foundation.
   (3) Any public entity.  As used in this section, "public entity"
means the State of California (including the Trustees of the
California State University), any instrumentality of this state
(including the Regents of the University of California), any
political subdivision of this state or any of its instrumentalities,
a county, city, district (including the governing board of any school
district or community college district, any county board of
education, any county superintendent of schools, or any personnel
commission of a school district or community college district that
has a merit system pursuant to any provision of the Education Code),
entities receiving state money to conduct county fairs and
agricultural fairs pursuant to Sections 25905 and 25906 of the
Government Code and that perform no other functions, any public
authority, public agency, or public corporation of this state, any
instrumentality of more than one of the foregoing, and any
instrumentality of any of the foregoing and one or more other states
or political subdivisions.
   (4) Any instrumentality of the United States required to make
payments under this division.
   (5) The receiver, trustee in bankruptcy, trustee or successor
thereof, and the legal representative of a deceased person.
   (6) Any Indian tribe as described by subsection (u) of Section
3306 of Title 26 of the United States Code.
   (b) All individuals performing services within this state for any
employing unit that maintains two or more separate establishments
within this state shall be deemed to be employed by a single
employing unit for all the purposes of this division.  This
subdivision does not apply to any Indian tribe (as described by
subsection (u) of Section 3306 of Title 26 of the United States Code)
and the subdivisions, subsidiaries, or other business enterprises
wholly owned by the Indian tribe if the tribe chooses to treat those
subdivisions, subsidiaries, or other business enterprises as separate
business entities for the purposes of Section 803.



135.1.  (a) A new employing unit shall not be created when there is
an acquisition or change in the form or organization of an existing
business enterprise, or severable portion thereof, and there is a
continuity of control of the business enterprise.
   (b) Control of a business enterprise may occur by means of
ownership of the organization conducting the business enterprise,
ownership of assets necessary to conduct the business enterprise,
security arrangements or lease arrangements covering assets necessary
to conduct the business enterprise, or a contract when the
ownership, stated arrangements or contract provide for or allow
direction of the internal affairs or conduct of the business
enterprise.
   (c) A continuity of control will exist if one or more persons,
entities, or other organizations controlling the business enterprise
remains in control of the business enterprise after an acquisition or
change in form.  Evidence of continuity of control shall include,
but not be limited to, changes of an individual proprietorship to a
corporation, partnership, limited liability company, association, or
estate; a partnership to an individual proprietorship, corporation,
limited liability company, association, estate, or the addition,
deletion, or change of partners; a limited liability company to an
individual proprietorship, partnership, corporation, association,
estate, or to another limited liability company; a corporation to an
individual proprietorship partnership, limited liability company,
association, estate, or to another corporation or from any form to
another form.
   (d) An employing unit described in subdivision (a) shall continue
to be the same employer for the purposes of this code as before the
acquisition or change in form.
   (e) This section shall not modify the provisions of Article 2
(commencing with Section 1731) of Chapter 7.
   (f) This section shall be subject to subdivision (e) of Section
982 and subdivision (d) of Section 1127.5.




135.2.  (a) If two or more business enterprises are united by
factors of control, operation, and use, the director may determine
that the business enterprises are one employing unit.
   (1) Control of a business enterprise shall include, but not be
limited to, ownership of a majority interest in an organization,
ownership of the assets used to conduct the business enterprise of
the organization, security arrangements or lease arrangements
regarding the assets used to conduct the business enterprise of the
organization, or contract when the ownership, stated arrangements, or
contract provide for or allow operation of the business enterprise.

   (2) Operation of the business enterprise, includes, but is not
limited to, management, personnel policies, operating procedures,
pricing, collections, and financing of the business enterprise.
   (3) Control of two or more business enterprises shall be united if
the majority interest in, or control of, each organization is in one
individual, entity, association, or other organization.
   (4) Unity of operation is evidenced by central financing,
accounting, and management of each business enterprise which
includes, but is not limited to, common management, personnel
policies, operating procedures, pricing, collections, and financing.

   (5) The use of two or more business enterprises shall be united if
they share a general system of operation and the enterprises are
organized for common purposes, and each is coordinated with, or is a
part of, the entire operation.
   (b) This section shall be subject to subdivision (e) of Section
982 and subdivision (d) of Section 1127.5.



136.  "Federal Unemployment Tax Act" means Chapter 23 of Subtitle C
of the Internal Revenue Code of 1954, or the corresponding provisions
of any other federal act into which such provisions may hereafter be
incorporated.


137.  "Public employment office" means a free public employment
office or branch thereof operated by this State or maintained as a
part of a state-controlled system of public employment offices.



139.  "State" includes the Commonwealth of Puerto Rico, the Virgin
Islands, and the District of Columbia, as well as each of the states
of the United States.


140.  "Unemployment compensation benefits" refers to benefits
payable under Part 1 of this division.



140.5.  "Unemployment compensation disability benefits" or
"disability benefits" refers to money payments payable under Part 2
(commencing with Section 2601) to either of the following:
   (a) An eligible unemployed individual with respect to his or her
wage losses due to unemployment as a result of illness or other
disability, resulting in that individual being unavailable or unable
to work.
   (b) An eligible individual with respect to his or her wage losses
who is unable to work due to caring for a seriously ill or injured
family member or bonding with a minor child within one year of the
birth or placement of the child in connection with foster care or
adoption.



141.  "Unemployment insurance" wherever it appears in this division
means "unemployment compensation."



142.  "Unemployment Trust Fund" means the Unemployment Trust Fund
established and maintained pursuant to Section 904 of the Federal
Social Security Act as amended.



142.5.  "United States" includes the states, the District of
Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
An individual who is a citizen of the Commonwealth of Puerto Rico or
the Virgin Islands (but not otherwise a citizen of the United States)
shall be considered as a citizen of the United States.




143.  "Week" means a period of seven consecutive days as prescribed
by authorized regulation.  Such regulation may prescribe that a week
shall be deemed to be "in," "within," or "during" that benefit year
which includes the greater part of such week.



144.  "Worker contributions," "contributions by workers," "employee
contributions," or "contributions by employees" mean contributions to
the Disability Fund.

back to top

301.  There is in the Labor and Workforce Development Agency the
Employment Development Department, which is vested with the duties,
purposes, responsibilities, and jurisdiction heretofore exercised by
the State Department of Benefit Payments or the California Health and
Human Services Agency with respect to job creation activities.  The
Employment Development Department shall be administered by an
executive officer known as the Director of Employment Development who
is vested with the duties, purposes, responsibilities, and
jurisdiction heretofore exercised by the Director of Benefit Payments
with respect to the following functions:
   (a) Job creation activities.
   (b) Making manual computations and making or denying
recomputations of the amount and duration of benefits.
   (c) Determination of contribution rates and the administration and
collection of contributions, penalties and interest, including but
not limited to filing and releasing liens.
   (d) Establishment, administration, and transfer of reserve
accounts.
   (e) Making assessments and the administration of credits and
refunds.
   (f) Approving elections for coverage or for financing unemployment
and disability insurance coverage.



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



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




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




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



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



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



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




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



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



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



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



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

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



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



316.  There shall be maintained within an appropriate division of
the department, a bureau, section or unit relating to education and
public instruction for the purpose of informing employers and workers
of their rights and responsibilities under this code, and of
instructing the public generally concerning its basic purposes,
provisions and operations.  All standard information employee
pamphlets concerning unemployment and disability insurance programs
shall be printed in English and separately in Spanish, or at the
discretion of the director, in English and Spanish, in such number as
he may determine.


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




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



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




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



321.  The Director of Employment Development shall make available,
upon request, to any agency of the United States government charged
with the administration of public works or assistance through public
employment, the following information relating to recipients of
unemployment compensation:
   (a) The recipient's name.
   (b) The recipient's address.
   (c) The ordinary occupation and employment status of each such
recipient of unemployment benefits.
   (d) A statement of such recipient's rights to further compensation
under this division.


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



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



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



325.  (a) The department may study and make recommendations as to
action which might tend to:
   (1) Promote the prevention of unemployment and the stabilization
of employment.
   (2) Encourage and assist in the adoption of practical methods of
vocational training, retraining and guidance.
   (3) Promote the establishment and operation by governmental units
and agencies of reserves for public work to be prosecuted in time of
business depression and unemployment.
   (4) Promote the reemployment of unemployed workers throughout the
state in any way that may seem feasible.
   (5) Reduce and prevent unemployment.
   (6) Establish the most effective methods of providing economic
security through all forms of social insurance.
   (b) To accomplish the ends set forth in subdivision (a) of this
section, the department may carry on and publish the results of
investigations and research studies.



325.5.  The department, in consultation and coordination with
veterans' organizations and veteran service providers, shall do all
of the following:
   (a) Research the needs of veterans throughout the state and
develop a profile of veterans' employment and training needs.
   (b) Develop a statewide plan for the equitable distribution of
employment funds for veterans' employment services.
   (c) Seek federal funding for purposes of subdivision (a).



325.6.  (a) It is the intent of the Legislature that state supported
Veterans Employment Training services meet the same performance
standards as those required by the federal Workforce Investment Act
for services provided to veterans.
   (b) Following any fiscal year in which state funds support the
Veterans Employment Training services program, the Employment
Development Department shall provide an annual report to the
Legislature, on or before November 1, regarding the following
performance measures:
   (1) The number of veterans receiving individualized, case managed
services.
   (2) The number of veterans who receive individualized, case
managed services entering employment.
   (3) The retention rate for veterans who enter employment.
   (4) The average earnings for veterans entering employment.




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



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



329.  (a) The director, or his or her designee, shall serve as
Chairperson of the Joint Enforcement Strike Force on the Underground
Economy provided for in Executive Order W-66-93.  The strike force
shall include, but not be limited to, representatives of the
Employment Development Department, the Department of Consumer
Affairs, the Department of Industrial Relations, the Department of
Insurance, and the Office of Criminal Justice Planning. Other
agencies that are not part of the administration, such as the
Franchise Tax Board, the State Board of Equalization, and the
Department of Justice, are encouraged to participate in the strike
force.
   (b) The strike force shall have the following duties:
   (1) To facilitate and encourage the development and sharing of
information by the participating agencies necessary to combat the
underground economy.
   (2) To improve the coordination of activities among the
participating agencies.
   (3) To develop methods to pool, focus, and target the enforcement
resources of the participating agencies in order to deter tax evasion
and maximize recoveries from blatant tax evaders and violators of
cash-pay reporting laws.
   (4) To reduce enforcement costs wherever possible by eliminating
duplicative audits and investigations.
   (c) In addition, the strike force shall be empowered to:
   (1) Form joint enforcement teams when appropriate to utilize the
collective investigative and enforcement capabilities of the
participating members.
   (2) Establish committees and rules of procedure to carry out the
activities of the strike force.
   (3) To solicit the cooperation and participation of district
attorneys and other state and local agencies in carrying out the
objectives of the strike force.
   (4) Establish procedures for soliciting referrals from the public,
including, but not limited to, an advertised telephone hotline.
   (5) Develop procedures for improved information sharing among the
participating agencies, such as shared automated information database
systems, the use of a common business identification number, and a
centralized debt collection system.
   (6) Develop procedures to permit the participating agencies to use
more efficient and effective civil sanctions in lieu of criminal
actions wherever possible.
   (7) Evaluate, based on its activities, the need for any statutory
change to do any of the following:
   (A) Eliminate barriers to interagency information sharing.
   (B) Improve the ability of the participating agencies to audit,
investigate, and prosecute tax and cash-pay violations.
   (C) Deter violations and improve voluntary compliance.
   (D) Eliminate duplication and improve cooperation among the
participating agencies.
   (E) Establish shareable information databases.
   (F) Establish a common business identification number for use by
participating agencies.
   (G) Establish centralized, automated debt collection services for
the participating agencies.
   (H) Strengthen civil penalty procedures to allow the strike force
to emphasize civil rather than criminal penalties wherever possible.

   (d) The strike force shall report to the Governor and the
Legislature annually during the period of its existence, by June 30,
of each year, regarding its activities.
   The report shall include, but not be limited to, all of the
following:
   (1) The number of cases of blatant violations and noncompliance
with tax and cash-pay laws identified, audited, investigated, or
prosecuted through civil action or referred for criminal prosecution.

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

   (3) Efforts made by the strike force to establish an advertised
telephone hotline for receiving referrals from the public.
   (4) Procedures for improving information sharing among the
agencies represented on the strike force.
   (5) Steps taken by the strike force to improve cooperation among
participating agencies, reduce duplication of effort, and improve
voluntary compliance.
   (6) Recommendations for any statutory changes needed to accomplish
the goals described in paragraph (7) of subdivision (c).



333.  (a) The department shall place a high priority on the
automation of the Benefit Payment Control Program, specifically
including, but not limited to, automating the ledger and collection
functions.
   (b) An automated system for the Benefit Payment Control Program
shall include a function which provides for the automatic issuance of
monthly collection letters to unemployment insurance claimants who
have received benefit overpayments.
   (c) Personnel savings from automation of the Benefit Payment
Control Program, notwithstanding any other provision of law, shall be
redirected to the processing of additional willful overpayment
cases.



334.  The director shall pursue the following methods to increase
the collection of unemployment insurance benefit overpayments:
   (a) Developing administrative or automated procedures to insure
that field offices appropriately refer cases to the central office
for the timely interception of a claimant's state tax refund.
   (b) Modifying the automated overpayment detection system so that
it will identify more overpayments.
   (c) Increasing the number of potential overpayments which are
reviewed by the department.
   (d) Working with the Legislature and the Governor to adequately
staff the Benefit Payment Control Program.




335.  The department, in consultation and coordination with the film
and movie industry, the Business, Transportation and Housing Agency,
and the California Film Commission shall do all of the following,
contingent upon the appropriation of funds in the annual Budget Act
for these specified purposes:
   (a) Research and maintain data on the employment and output of the
film industry, including full-time, part-time, contract, and short
duration or single event employees.
   (b) Examine the ethnic diversity and representation of minorities
in the entertainment industry.
   (c) Determine the overall direct and indirect economic impact of
the film industry.
   (d) Monitor film industry employment and activity in other states
and countries that compete with California for film production.
   (e) Review the effect that federal and state laws and local
ordinances have on the filmed entertainment industry.
   (f) Prepare and release biannually a report to the chairpersons of
the appropriate Senate and Assembly policy committees that details
the information required by this section.



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

back to top

401.  There is in the department an Appeals Division consisting of
the California Unemployment Insurance Appeals Board and its
employees.  The appeals board consists of seven members.  Five
members shall be appointed by the Governor, subject to the approval
of the Senate.  One member shall be appointed by the Speaker of the
Assembly, and one member shall be appointed by the Senate Rules
Committee.  Two of the members of the appeals board shall be
attorneys at law admitted to practice in the State of California.
The other members need not be attorneys.  Each member of the board
shall devote his full time to the performance of his duties.  The
chairman and each member of the board shall receive the annual salary
provided for by Chapter 6 (commencing with Section 11550) of Part 1
of Division 3 of Title 2 of the Government Code.  The Governor shall
designate the chairman of the appeals board from the membership of
the appeals board.  The person so designated shall hold the office of
chairman at the pleasure of the Governor.  The chairman shall
designate a member of the appeals board to act as chairman in his
absence.



402.  Each member of the appeals board shall serve for a term of
four years and until his successor is appointed and qualifies.  The
term of office of each member of the board appointed pursuant to the
1967 amendment to this section shall also be for four years;
provided, however, that of the two board members first appointed
pursuant to such amendments, one shall be appointed for a term which
shall expire July 1, 1970, and one for a term which shall expire July
1, 1971.
   A vacancy shall be filled by the appointing power by appointment
for the unexpired term.  A vacancy filled by the Governor shall be
subject to the approval of the Senate.



403.  All personnel of the Appeals Division shall be appointed,
directed and controlled only by the appeals board or its authorized
deputies or agents to whom it may delegate such powers.
   The appeals board shall prepare a budget covering the necessary
administrative costs of the Appeals Division.  Such budget shall not
be subject to change by the director except as agreed to by the
appeals board.  In the event that agreement cannot be reached, the
final decision shall rest with the Governor.  The director shall
furnish the equipment, supplies, housing and nonpersonal and
housekeeping services required by the Appeals Division and shall
perform such other mechanics of administration as the appeals board
and the director may agree upon.



404.  The appeals board, or the executive officer subject to its
direction and control to whom it delegates such responsibility, shall
appoint and direct the activities of one or more impartial
administrative law judges who shall hear and render a decision in
every matter in which a petition is filed with, or an appeal is taken
to, an administrative law judge as provided in this division.  The
compensation of the administrative law judges shall be fixed by the
State Personnel Board at a rate comparable to that of other
administrative law judges or hearing officers in state service whose
duties and responsibilities are comparable, without regard to whether
such other positions have membership in the State Bar of California
as a prerequisite to appointment.  No administrative law judge shall
participate in any case in which he is an interested party.



405.  The appeals board shall appoint a chief administrative law
judge who shall be a member in good standing of the State Bar of
California.


406.  The duties of the chief administrative law judge include:
   (a) Serving as the chief executive of the board in the
administration of the activities of administrative law judges and
their staffs.
   (b) Maintaining a continuous review of the decisions of
administrative law judges from which no appeal is taken to uncover
decisions which appear inconsistent with the law, with established
judicial decisions, with prior decisions of the board or with each
other and recommending such cases to the appeals board for
certification to itself for a further hearing.



407.  In any case before it, the appeals board may delegate to any
one of its members or to a special examiner or administrative law
judge the taking or hearing of evidence.  The appeals board and its
duly authorized representatives in the performance of its duties
under this division shall have the powers of a head of a department
as set forth in Sections 11180 to 11191, inclusive, of the Government
Code.



408.  All decisions and orders of the Appeals Board shall be in
writing.


409.  The chairperson shall assign cases before the board to any two
members of the board for consideration and decision.  Assignments by
the chairperson of members to the cases shall be rotated so as to
equalize the workload of the members, but with the composition of the
members so assigned being varied and changed to assure that there
shall never be a fixed and continuous composition of members.  Except
as otherwise provided, the decision of the two members assigned the
case shall be the decision of the appeals board.  In the event that
the two members do not concur in the decision, the chairperson or
another member of the board designated by the chairperson shall be
assigned to the panel and shall resolve the impasse.  A case shall be
considered and decided by the appeals board acting as a whole at the
request of any member of the appeals board.
   The appeals board shall meet as a whole when the chairperson may
direct to consider and pass on any matters that the chairperson may
bring before it, and to consider and decide cases that present issues
of first impression or that will enable the appeals board to achieve
uniformity of decisions by the respective members.
   The appeals board, acting as a whole, may designate certain of its
decisions as precedents.  Precedent decisions of the appeals board
are subject to Section 11425.60 of the Government Code.  The appeals
board, acting as a whole, may, on its own motion, reconsider a
previously issued decision solely to determine whether or not the
decision shall be designated as a precedent decision.  Decisions of
the appeals board acting as a whole shall be by a majority vote of
its members.  The director and the appeals board administrative law
judges shall be controlled by those precedents except as modified by
judicial review.  If the appeals board issues decisions other than
those designated as precedent decisions, anything incorporated in
those decisions shall be physically attached to and be made a part of
the decisions.  The appeals board may make a reasonable charge as it
deems necessary to defray the costs of publication and distribution
of its precedent decisions and index of precedent decisions.



409.1.  If a final judgment of a court of competent jurisdiction
reverses or declares invalid a precedent decision of the appeals
board issued under Section 409 or this section, the appeals board,
acting as a whole, shall promptly modify the precedent decision to
conform in all respects to the judgment of the court.  The modified
precedent decision shall supersede the prior precedent decision for
all purposes.  The appeals board shall promptly notify the director,
the administrative law judges of the appeals board, and all other
subscribers to the precedent decisions, of the modified precedent
decision.


409.2.  Any interested person or organization may bring an action
for declaratory relief in the superior court in accordance with the
provisions of the Code of Civil Procedure to obtain a judicial
declaration as to the validity of any precedent decision of the
appeals board issued under Section 409 or 409.1.



410.  A decision of the appeals board is final, except for such
action as may be taken by a judicial tribunal as permitted or
required by law.
   A decision of the appeals board is binding on the director with
respect to the parties involved in the particular appeal.
   The director shall have the right to seek judicial review from an
appeals board decision irrespective of whether or not he or she
appeared or participated in the appeal to the administrative law
judge or to the appeals board.
   Notwithstanding any other provision of law, the right of the
director, or of any other party except as provided by Sections 1241,
1243, and 5313, to seek judicial review from an appeals board
decision shall be exercised not later than six months after the date
of the decision of the appeals board or the date on which the
decision is designated as a precedent decision, whichever is later.
   The appeals board shall attach to all of its decisions where a
request for review may be taken, an explanation of the party's right
to seek such review.



411.  The appeals board, acting as a whole, may promulgate rules or
amend or rescind rules pertaining to hearing appeals and other
matters falling within its jurisdiction.  All these rules, amendments
thereto, or repeals thereof, shall be made in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.



412.  (a) The appeals board acting as a whole may, by notice mailed
to the director and the parties prior to the mailing of an
administrative law judge's decision on an appeal or petition under
this division pending before any administrative law judge, on its own
motion either:
   (1) Transfer the proceedings to another administrative law judge;
or
   (2) Remove the proceedings to itself for review and decision.
   (b) If the appeals board removes any proceedings to itself for
review and decision pursuant to this section, the appeals board may
order the taking of additional evidence and may affirm, reverse,
modify, or set aside any findings or action of the department from
which the appeal or petition to the administrative law judge was
taken in the proceedings. The appeals board shall promptly notify the
department and the parties to the proceedings of its order or
decision.



413.  (a) The appeals board acting as a whole may, by notice mailed
to the director and the parties not later than 30 days after the
mailing of an administrative law judge's decision on an appeal or
petition under this division to the administrative law judge, on its
own motion either:
   (1) Set aside the decision of the administrative law judge and
remand the proceedings to another administrative law judge for review
and decision; or
   (2) Remove the proceedings to itself for review and decision.
   (b) If the appeals board removes any proceedings to itself for
review and decision pursuant to this section, the appeals board may
order the taking of additional evidence and may affirm, reverse,
modify or set aside the decision of the administrative law judge.
The appeals board shall promptly notify the department and the
parties to the proceedings of its order or decision.
   (c) Notwithstanding any other provision of this division, no
decision of an administrative law judge under this division shall be
final if the appeals board pursuant to this section sets aside such
decision or removes the proceedings to itself for review and
decision.

back to top

451.  The administration of this division and of other state and
federal unemployment compensation and public employment service laws
will be promoted by cooperation between this State and such other
states and the appropriate federal agencies in exchanging services,
and making available facilities and information.  The director may
make investigations, secure and transmit information, make available
services and facilities and exercise the other powers provided with
respect to the administration of this division which he finds
necessary or appropriate to facilitate the administration of any
state or federal unemployment compensation or public employment
service law, and may accept and utilize information, services and
facilities made available to this State by an agency charged with the
administration of any such other state or federal law.



452.  To the extent permissible under the laws and Constitution of
the United States, the director may enter into or cooperate in
arrangements whereby facilities and services provided under the
unemployment compensation law of any foreign government, may be
utilized for the taking of claims and the payment of benefits under
the Unemployment Insurance Law of this State or a similar law of such
government.



453.  To encourage cooperation between this state and other states
in the enforcement of the unemployment insurance law of each state
and to further coordinate the nationwide system of unemployment
insurance in the United States and its territories:
   (a) The courts of this state shall recognize and enforce
liabilities for unemployment contributions, penalties, interest, and
benefit overpayments imposed by other states which extend a like
comity to this state.
   (b) The Attorney General may commence action in any other
jurisdiction by and in the name of the department to collect
unemployment contributions, penalties, interest, and benefit
overpayments legally due this state.  The officials of other states
which extend a like comity to this state may sue for the collection
of such contributions, penalties, interest, and benefit overpayments
in the courts of this state.  A certificate by the Secretary of State
under the Great Seal of the state that the officers of the
department designated by the director have authority to collect the
contributions, penalties, interest, and benefit overpayments is
conclusive evidence of such authority.
   (c) The Attorney General may commence action in this state as
agent for and on behalf of any other state to enforce judgments and
liabilities for unemployment insurance contributions, penalties,
interest and benefit overpayments due such state which extends a like
comity to this state.  The requesting state shall pay the court
costs.


454.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby:
   (a) Services customarily performed in more than one state by an
individual for a single employer shall be deemed to be services
performed entirely within any one of the states (i) in which any part
of the individual's service is performed, or (ii) in which the
individual has his residence, or (iii) in which the employer
maintains a place of business, if there is in effect as to such
services an election by the employing unit with the acquiescence of
the individual, approved by the agency charged with the
administration of such state's unemployment compensation law pursuant
to which all the services performed by such individual for such
employer are deemed to be performed entirely within such state.
   (b) Services on vessels engaged in interstate commerce wherever
performed shall be deemed performed within this State or any other
state on the basis of the location of the operating office of the
employer from which the operations of the vessel are ordinarily and
regularly supervised, managed, directed, and controlled.



455.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby:
   (a) Potential rights to benefits accumulated under the
unemployment compensation laws of one or more states or of the
Federal Government, or both, may constitute the basis for the payment
of benefits through a single appropriate agency under terms which
the director finds will be fair and reasonable to all affected
interests and which will not result in any substantial loss to the
fund.
   (b) Wages or services in employment subject to an unemployment
compensation law of another state or of the Federal Government shall
be deemed to be wages in employment for employers for the purpose of
determining an individual's rights to unemployment compensation
benefits under this part, and wages in employment for employers as
defined in this part shall be deemed to be wages or services on the
basis of which unemployment compensation under the law of another
state or of the Federal Government is payable, but no such
arrangement shall be entered into unless it contains provisions for
reimbursements to the Unemployment Fund for such of the unemployment
compensation benefits paid under this part upon the basis of such
wages or services, and provisions for reimbursements from the
Unemployment Fund for such of the compensation paid under such other
law upon the basis of wages for employment as defined in this part as
the director finds will be fair and reasonable to all affected
interests.  Reimbursements paid from the Unemployment Fund pursuant
to this subdivision shall be deemed to be unemployment compensation
benefits for the purposes of this part.  The director may make to
other state and federal agencies and receive from such other state or
federal agencies reimbursements from or to the fund, in accordance
with arrangements entered into pursuant to this subdivision.




455.5.  This state shall participate in any arrangements for the
payment of compensation on the basis of combining an individual's
wages and employment covered under this division with his wages and
employment covered under the unemployment compensation law of other
states which are approved by the Secretary of Labor in consultation
with the state unemployment compensation agencies as reasonably
calculated to assure the prompt and full payment of compensation in
such situations.  Any such arrangement shall include provisions for
both of the following:
   (a) Applying the base period of a single state law to a claim
involving the combining of an individual's wages and employment
covered under two or more state laws.
   (b) Avoiding duplicate use of wages and employment by reason of
such combining.



455.7.  Notwithstanding any other provision of this division,
benefits shall not be denied or reduced to an individual solely
because he files a claim in another state, or a contiguous country
with which the United States has an agreement with respect to
unemployment compensation, or because he resides in another state or
such a contiguous country at the time he files a claim for
unemployment compensation.



456.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby employer contributions due under this part with respect
to wages for employment shall be deemed to have been paid to the
Unemployment Fund of this State as of the date payment of such
contributions was made under another state or federal unemployment
compensation law.  No arrangement shall be entered into pursuant to
this section unless it contains provisions for such reimbursement to
the fund of such contributions and the actual earnings thereon as the
director finds will be fair and reasonable to all affected
interests.  The director may collect contributions in like manner for
such agencies of other states and the Federal Government
administering unemployment compensation laws and remit such
contributions to such agencies under appropriate reciprocal
arrangements.

back to top

601.  "Employment" means service, including service in interstate
commerce, performed by an employee for wages or under any contract of
hire, written or oral, express or implied.



601.5.  For the purpose of this division only, "employment" includes
any service in an artistic or literary capacity performed by an
individual pursuant to a collective bargaining agreement between an
employer and a labor organization in the motion picture, radio or
television industry where the employer has the right to control and
direct the services to be performed and the individual is defined as
an employee under the terms of the collective bargaining agreement.



602.  "Employment" includes an individual's entire service,
performed within, or both within and without, this State if:
   (a) The service is localized in this State; or
   (b) The service is not localized in any state but some of the
service is performed in this State and (1) the base of operations,
or, if there is no base of operations, then the place from which such
service is directed or controlled, is in this State; or (2) the base
of operations or place from which such service is directed or
controlled is not in any state in which some part of the service is
performed, but the individual's residence is in this State.



603.  Service is localized within a state if:
   (a) The service is performed entirely within the state; or
   (b) The service is performed both within and without the state,
but the service performed without the state is incidental to the
individual's service within the state; for example, is temporary or
transitory in nature, or consists of isolated transactions.



603.5.  "Employment" includes an individual's entire service,
wherever performed within the United States or Canada, if such
service is not covered under the unemployment compensation law of any
other state or Canada, and the place from which the service is
directed or controlled is in this state.



604.  "Employment" includes an individual's entire service, if such
service is deemed performed in this State by virtue of an arrangement
made pursuant to this division and does not include any service
which by virtue of such an arrangement is deemed performed in another
state.


605.  (a) Except as provided by Section 634.5, "employment" for the
purposes of this part and Parts 3 (commencing with Section 3501) and
4 (commencing with Section 4001) includes all service performed by an
individual (including blind and otherwise disabled individuals) for
any public entity or Indian tribe, if the service is excluded from
"employment" under the federal Unemployment Tax Act solely by reason
of paragraph (7) of Section 3306(c) of that act.
   (b) For purposes of this section:
   (1) "Public entity" means the State of California (including the
Trustees of the California State University and Colleges, and the
California Industries for the Blind), any instrumentality of this
state (including the Regents of the University of California), any
political subdivision of this state or any of its instrumentalities,
a county, city, district (including the governing board of any school
district or community college district, any county board of
education, any county superintendent of schools, or any personnel
commission of a school district or community college district that
has a merit system pursuant to any provision of the Education Code),
entities conducting fairs as identified in Sections 19418 to 19418.3,
inclusive, of the Business and Professions Code, any public
authority, public agency, or public corporation of this state, any
instrumentality of more than one of the foregoing, and any
instrumentality of any of the foregoing and one or more other states
or political subdivisions.
   (2) "Indian tribe" means any Indian tribe described by subsection
(u) of Section 3306 of Title 26 of the United States Code.



606.  Each individual employed to perform or to assist in performing
the work of any individual employed by an employing unit shall be
deemed to be employed by that employing unit for all the purposes of
this division, whether or not he was hired or paid directly by the
employing unit if the employing unit had actual or constructive
knowledge of the work.



606.5.  (a) Whether an individual or entity is the employer of
specific employees shall be determined under common law rules
applicable in determining the employer-employee relationship, except
as provided in subdivisions (b) and (c).
   (b) As used in this section, a "temporary services employer" and a
"leasing employer" is an employing unit that contracts with clients
or customers to supply workers to perform services for the client or
customer and performs all of the following functions:
   (1) Negotiates with clients or customers for such matters as time,
place, type of work, working conditions, quality, and price of the
services.
   (2) Determines assignments or reassignments of workers, even
though workers retain the right to refuse specific assignments.
   (3) Retains the authority to assign or reassign a worker to other
clients or customers when a worker is determined unacceptable by a
specific client or customer.
   (4) Assigns or reassigns the worker to perform services for a
client or customer.
   (5) Sets the rate of pay of the worker, whether or not through
negotiation.
   (6) Pays the worker from its own account or accounts.
   (7) Retains the right to hire and terminate workers.
   (c) If an individual or entity contracts to supply an employee to
perform services for a customer or client, and is a leasing employer
or a temporary services employer, the individual or entity is the
employer of the employee who performs the services.  If an individual
or entity contracts to supply an employee to perform services for a
client or customer and is not a leasing employer or a temporary
services employer, the client or customer is the employer of the
employee who performs the services.  An individual or entity that
contracts to supply an employee to perform services for a customer or
client and pays wages to the employee for the services, but is not a
leasing employer or a temporary services employer, pays the wages as
the agent of the employer.
   (d) In circumstances which are in essence the loan of an employee
from one employer to another employer wherein direction and control
of the manner and means of performing the services changes to the
employer to whom the employee is loaned, the loaning employer shall
continue to be the employer of the employee if the loaning employer
continues to pay remuneration to the employee, whether or not
reimbursed by the other employer.  If the employer to whom the
employee is loaned pays remuneration to the employee for the services
performed, that employer shall be considered the employer for the
purposes of any remuneration paid to the employee by the employer,
regardless of whether the loaning employer also pays remuneration to
the employee.



607.  If the services performed during one-half or more of any pay
period by an employee for the person employing him constitute
employment, all the services of the employee for that period shall be
deemed to be employment; but if the services performed during more
than one-half of any pay period by an employee for the person
employing him do not constitute employment, then none of the services
of the employee for that period shall be deemed to be employment.
   As used in this section "pay period" means a period of not more
than 31 consecutive days for which a payment of remuneration is
ordinarily made to the employee by the person employing him.




608.  "Employment", except as provided by Section 634.5, includes
service excluded from "employment" under the Federal Unemployment Tax
Act solely by reason of paragraph (8) of Section 3306(c) of that act
because it is service performed in the employ of a religious,
charitable, educational, or other nonprofit organization described in
Section 501(c)(3) of the Internal Revenue Code of 1954 which is
exempt from income tax under Section 501(a) of that code.



609.  (a) "Employment" includes service performed for an employing
unit on or in connection with an American vessel operating on
navigable waters within or within and without the United States or on
or in connection with an American aircraft operating within or
within and without the United States, if the employing unit maintains
in this state an operating office from which the operations of the
American vessel or American aircraft are ordinarily and regularly
supervised, managed, directed, and controlled, and such services are
included in "employment" under the Federal Unemployment Tax Act.
   (b) All of the provisions of this division shall be applicable to
an employing unit and to service performed in "employment" under this
section in the same manner and to the same extent as to all other
employers, and the wage credits given to, and the payment of benefits
to, any employee of an employing unit under this section shall be in
the same amount, on the same terms, and subject to the same
conditions as applied to employees of other employers under this
division.



610.  "Employment" shall include the service of an individual who is
a citizen of the United States, performed outside the United States
(except in Canada), after December 31, 1971, in the employ of an
American employer as defined in Section 125.4 other than service that
is deemed "employment" under Section 602 or 603 or the equivalent
provisions of another state's unemployment compensation law, if:
   (a) The employer's principal place of business in the United
States is located in this state; or
   (b) The employer has no place of business in the United States,
but:
   (1) The employer is an individual who is a resident of this state;
or
   (2) The employer is a corporation or limited liability company
that is organized under the laws of this state; or
   (3) The employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater than
the number who are residents of any one other state; or
   (c) None of the criteria of subdivisions (a) and (b) of this
section is met but the employer has elected coverage in this state
or, the employer having failed to elect coverage in any state, the
individual has filed a claim for benefits, based on such service,
under this division.


611.  "Employment" includes agricultural labor.

back to top

621.  "Employee" means all of the following:
   (a) Any officer of a corporation.
   (b) Any individual who, under the usual common law rules
applicable in determining the employer-employee relationship, has the
status of an employee.
   (c) (1) Any individual, other than an individual who is an
employee under subdivision (a) or (b), who performs services for
remuneration for any employing unit if the contract of service
contemplates that substantially all of such services are to be
performed personally by such individual either:
   (A) As an agent-driver or commission-driver engaged in
distributing meat products, vegetable products, fruit products,
bakery products, beverages (other than milk), or laundry or
drycleaning services, for his or her principal.
   (B) As a traveling or city salesperson, other than as an
agent-driver or commission-driver, engaged upon a full-time basis in
the solicitation on behalf of, and the transmission to, his or her
principal (except for sideline sales activities on behalf of some
other person) of orders from wholesalers, retailers, contractors, or
operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business
operations.
   (C) As a home worker performing work, according to specifications
furnished by the person for whom the services are performed, on
materials or goods furnished by such person which are required to be
returned to such person or a person designated by him or her.
   (2) An individual shall not be included in the term "employee"
under the provisions of this subdivision if such individual has a
substantial investment in facilities used in connection with the
performance of such services, other than in facilities for
transportation, or if the services are in the nature of a single
transaction not part of a continuing relationship with the employing
unit for whom the services are performed.
   (d) Any individual who is an employee pursuant to Section 601.5 or
686.
   (e) Any individual whose services are in subject employment
pursuant to an election for coverage under any provision of Article 4
(commencing with Section 701) of this chapter.



621.5.  (a) "Employee" also means any individual who is an employee,
pursuant to Section 2750.5 of the Labor Code, of a person who holds
a valid state contractor's license pursuant to Chapter 9 (commencing
with Section 7000) of Division 3 of the Business and Professions
Code.
   (b) When subdivision (a) does not apply, "employee" shall also
mean any individual who is an employee, pursuant to Section 2750.5 of
the Labor Code, of a person who is required to obtain a valid state
contractor's license pursuant to Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code.



622.  (a) "Employee" does not include a director of a corporation or
association performing services in his or her capacity as a
director.  This section shall not apply to service included in
"employment" pursuant to Sections 605, 608, 709, and 710.
   (b) "Services in his or her capacity as a director" includes
either:
   (1) Presence at meetings of the board of directors, even though no
further service is performed at the meeting.
   (2) Services customarily performed by directors in attending
meetings of the board of directors such as prescribing, regulating,
and guiding the policies and administration of the corporation or
association.
   (c) "Services in his or her capacity as a director" does not
include services performed by a director in addition to, or other
than those described in subdivision (b) of this section.  For
example, services performed as an officer of the corporation or
association, or as a member of a committee which executes the
policies and administrative decisions adopted by the board of
directors such as advisory, appraisal, auditing, credit, examining,
executive, loan or similar committees are not "services in his or her
capacity as a director".

back to top

629.  (a) "Employment" does not include domestic service in a
private home, except that "employment" includes domestic service in a
private home if performed for an employing unit or a person who paid
in cash remuneration of one thousand dollars ($1,000) or more to
individuals employed in the domestic service in any calendar quarter
in the calendar year or the preceding calendar year.
   (b) For purposes of subdivision (a), "employment" does not include
work performed by a domestic worker for whom an employment agency,
as defined in paragraph (3) of subdivision (a) or subdivision (h) of
Section 1812.501 of the Civil Code, procures, offers, refers,
provides, or attempts to provide domestic work in a private home, if
all of the factors set forth in Section 687.2 characterize the nature
of the relationship between the employment agency and the domestic
worker for whom the agency procures, offers, refers, provides, or
attempts to provide domestic work.



630.  Notwithstanding subparagraph (C) of paragraph (1) of
subdivision (c) of Section 621 or Section 13004, "employment" does
not include service as a transcriber of depositions, court
proceedings, and hearings performed away from the office of the
person, firm, or association obligated to produce a transcript of
these proceedings.



631.  "Employment" does not include service performed by a child
under the age of 18 years in the employ of his father or mother, or
service performed by an individual in the employ of his son,
daughter, or spouse, except to the extent that the employer and the
employee have, pursuant to Section 702.5, elected to make
contributions to the Unemployment Compensation Disability Fund.



632.  "Employment" does not include service performed in the employ
of any other state or its political subdivisions or in the employ of
the United States government or of any instrumentality of the United
States, but if Congress permits the states to require any
instrumentalities of the United States to make payments into a fund
under a state unemployment compensation act, and to comply with state
regulations thereunder, then, to the extent permitted by Congress,
all of the provisions of this division shall be applicable to the
instrumentalities and to services performed for the instrumentalities
in the same manner, to the same extent, and on the same terms as to
all other employers, employing units, individuals, and services.
   If this state is not certified by the Secretary of Labor under
Section 3304 of the Internal Revenue Code of 1986 for any year, then
the payments required of the instrumentalities and their workers with
respect to the year shall be refunded from the Unemployment Fund
without interest.


633.  (a) For purposes of coverage under Part 2 (commencing with
Section 2601) of Division 1, "employment" does not include services
performed as an intermittent or adjunct instructor at a postsecondary
educational institution which meets the requirements of Article 8
(commencing with Section 94900) of Chapter 7 of Part 59 of the
Education Code if the intermittent or adjunct instructor and the
employing unit enter a written contract with the following
provisions:
   (1) That any federal or state income tax liability shall be the
responsibility of the party providing the services.
   (2) That no disability insurance coverage is provided under the
contract.
   (3) That the party performing the services certifies that he or
she is doing so as a secondary occupation or as a supplemental source
of income.
   (b) This section shall not apply to services performed under a
collective bargaining agreement.
   (c) This section shall become operative on January 1, 1997.




633.1.  For purposes of coverage under Part 2 (commencing with
Section 2601), "employment" shall not include:
   (a) Services performed for any public entity, nonprofit or for
profit entity, organization, or business by an inmate of a state
prison under the jurisdiction of the Department of Corrections, by an
individual who is otherwise in the custody of the Department of
Corrections, or by an individual who is otherwise incarcerated in any
of the institutions set forth in Section 2680.
   (b) Services performed for any public entity, nonprofit or for
profit entity, organization, or business by a ward in the custody of
the Department of the Youth Authority.



634.5.  Notwithstanding any other provision of law, no provision
excluding service from "employment" shall apply to any entity defined
by Section 605 or to any nonprofit organization described by Section
608, except as provided by this section. With respect to any entity
defined by Section 605 or any nonprofit organization described by
Section 608, "employment" does not include service excluded under
Sections 629, 631, 635, and 639 to 648, inclusive, or service
performed in any of the following:
   (a) In the employ of either of the following:
   (1) A church or convention or association of churches.
   (2) An organization which is operated primarily for religious
purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches.
   (b) By a duly ordained, commissioned, or licensed minister of a
church in the exercise of his or her ministry or by a member of a
religious order in the exercise of duties required by the order.
   (c) In the employ of any entity defined by Section 605, if the
service is performed by an individual in the exercise of his or her
duties as any of the following:
   (1) An elected official.
   (2) A member of a legislative body or a member of the judiciary of
a state or a political subdivision of a state.
   (3) A member of the tribal council of an Indian tribe as described
by subsection (u) of Section 3306 of Title 26 of the United States
Code.
   (4) A member of a State National Guard or Air National Guard.
   (5) An employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood, or other similar emergency.
   (6) An employee in a position that, under or pursuant to state or
tribal law, is designated as either of the following:
   (A) A major nontenured policymaking or advisory position.
   (B) A policymaking or advisory position, the performance of the
duties of which ordinarily does not require more than eight hours per
week.
   (7) (A) Except as otherwise provided in subparagraph (B), an
election official or election worker if the amount of remuneration
reasonably expected to be received by the individual during the
calendar year for services as an election official or election worker
is less than one thousand dollars ($1,000).
   (B) This paragraph shall not take effect unless and until the
service is excluded from service to which paragraph (1) of
subdivision (a) of Section 3309 of Title 26 of the United States Code
applies by reason of exemption under subdivision (b) of Section 3309
of that act.
   (d)  By an individual receiving rehabilitation or remunerative
work in a facility conducted for the purpose of carrying out a
program of either:
   (1) Rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury.
   (2) Providing remunerative work for individuals who because of
their impaired physical or mental capacity cannot be readily absorbed
in the competitive labor market.
   (e) By an individual receiving work relief or work training as
part of an unemployment work relief or work training program assisted
or financed in whole or in part by any of the following:
   (1) A federal agency.
   (2) An agency of a state or a political subdivision thereof.
   (3) An Indian tribe, as described by subsection (u) of Section
3306 of Title 26 of the United States Code.
   (f) By a ward or an inmate of a custodial or penal institution
pursuant to Article 1 (commencing with Section 2700), Article 4
(commencing with Section 2760), and Article 5 (commencing with
Section 2780) of Chapter 5 of, and Article 1 (commencing with Section
2800) of Chapter 6 of, Title 1 of Part 3 of the Penal Code, Section
4649 and Chapter 1 (commencing with Section 4951) of Part 4 of
Division 4 of the Public Resources Code, and Sections 883, 884, and
1768 of the Welfare and Institutions Code.
   (g) By an individual under the age of 18 years in the delivery or
distribution of newspapers or shopping news, not including delivery
or distribution to any point for subsequent delivery or distribution.

   (h) By an individual in the sale of newspapers or magazines to
ultimate consumers, under an arrangement that includes the following
conditions:
   (1) The newspapers or magazines are to be sold by the individual
at a fixed price.
   (2) The individual's compensation is based on retention of the
excess of the price over the amount at which the newspapers or
magazines are charged to the individual, whether or not he or she is
guaranteed a minimum amount of compensation for the service or is
entitled to be credited with the unsold newspapers or magazines that
he or she returns.
   (i) (1) Except as otherwise provided in paragraph (2), as a
substitute employee whose employment does not increase the size of
the employer's normal workforce, whose employment is required by law,
and whose employment as a substitute employee does not occur on more
than 60 days during the base period.
   (2) This subdivision shall not take effect unless and until the
United States Secretary of Labor, or his or her designee, finds that
this subdivision is in conformity with federal requirements.
   (j) As a participant in a national service program carried out
using assistance provided under Section 12571 of Title 42 of the
United States Code.



635.  "Employment" does not include service under any unemployment
compensation system established by a law of the United States.



636.  "Employment" does not include services performed in the employ
of either a candidate for public office or a committee as defined in
Section 82013 of the Government Code, where such services are
performed in connection with an election campaign.




637.  "Employment" does not include service performed by any of the
following:
   (a) The officers and director of a corporation who are the sole
shareholders of the corporation and it is not subject to the Federal
Unemployment Tax Act.
   (b) The officers and director of a corporation engaged in
agriculture who are shareholders of the corporation and it is not
subject to the Federal Unemployment Tax Act.
   (c) An officer of a corporation who is the sole shareholder, or
the only shareholder other than his or her spouse, and the service is
not subject to the Federal Unemployment Tax Act.



637.1.  In a private corporation, any individual who is included
within the meaning of "employee" pursuant to subdivision (a) of
Section 621 and who is the sole shareholder, or the only shareholder
other than his or her spouse, may file a statement electing to be
excluded from disability insurance coverage for benefits and
contributions under this division.  The election shall be effective
on the first day of the calendar quarter in which the statement is
filed.  The election shall be effective during the remainder, if any,
of the calendar year in which the statement is filed and not less
than the two succeeding complete calendar years, and in all
subsequent calendar quarters while the statement is in effect.



638.  Sections 639 to 648, inclusive, shall be operative only during
such time as the respective type or types of service set forth in
those sections are similarly excluded from the definition of
"employment," in the Federal Unemployment Tax Act.




639.  "Employment" does not include domestic service in a local
college club, or local chapter of a college fraternity or sorority,
except that "employment" includes domestic service in a local college
club, or local chapter of a college fraternity or sorority if
performed for a club, chapter, or person who paid in cash
remuneration of one thousand dollars ($1,000) or more to individuals
employed in such domestic service in any calendar quarter in the
calendar year or the preceding calendar year.



640.  "Employment" does not include service not in the course of the
employing unit's trade or business performed in any calendar quarter
by an employee, unless the cash remuneration paid for such service
is fifty dollars ($50) or more and such service is performed by an
individual who is regularly employed by such employing unit to
perform such service.  For the purposes of this subdivision, an
individual shall be deemed to be regularly employed by an employing
unit during a calendar quarter only if on each of some 24 days during
that quarter or the preceding calendar quarter such individual
performs for such employing unit for some portion of the day service
not in the course of the employing unit's trade or business.




641.  "Employment" does not include service performed in any
calendar quarter in the employ of any organization exempt from
federal income tax under Section 501(a) of the Internal Revenue Code
of 1954, as amended (other than an organization described in Section
401(a) of that code), or under Section 521 of the Internal Revenue
Code of 1954, as amended, if the remuneration for such service is
less than fifty dollars ($50).



642.  "Employment" does not include service performed in the employ
of a school, college, or university, if such service is performed:
   (a) By a student who is enrolled and is regularly attending
classes at such school, college, or university, or
   (b) By the spouse of such a student, if such spouse is advised, at
the time such spouse commences to perform such service, that:
   (1) The employment of such spouse to perform such service is
provided under a program to pro