Processing Unemployment Claim Notices

Robin Noah

I have received several calls recently regarding what to do when an employer receives an unemployment claim notice from the EDD. Following is a brief overview.

Most important is that the employer a) respond within the 10 days allowed and that b) the employer provides complete details of the action. These details will be the basis for the EDD’s final determination – even if a person quits it is possible to collect unemployment. A key component for the EDD’s final determination is that an employee will not be eligible for unemployment benefits unless there is a good reason for quitting, meaning that a reasonable person who truly wanted a job would have left under the same circumstances. 

The EDD will mail a notice of the claim to the last employer. A timely employer response guarantees; 1) a written Notice of Determination/Ruling from the EDD and 2) the Employer’s rights to appeal the EDD’s determination. (See www. edd.ca.gov)

Be aware that employers are required to provide pamphlets that explain employees’ benefit rights at the time of the separation.  For example  

  • For Your Benefit – California’s Programs for the Unemployed (DE 2320) – Provides information on UI, DI, PFL, and Job Service benefits available to the employee. 
  • Disability Insurance Provisions (DE 2515) – This brochure outlines the DI program. 
  • Notice to Employee as to Change in Relationship – Written notice must be given immediately to employees of their discharge, layoff, leave of absence, or change in employment status.   

After the review the EDD will send the employer their determination.  If the EDD finds for the employee the employer’s account will be affected. The employer’s unemployment taxes may go up.

Periodically, most likely once a year, the state reviews the number of claims each employer has against them. If the employer has too many claims (and the state decides what is too many), then the tax the employer has to pay is increased. It will go from (x percent) to (x+1 percent), or maybe even (x+2).If the employer has not had many claims charged against their account the effect may be small and the employer could choose to accept the case determination. 

If the employer wants to appeal the EDD determination it needs to be filed within the time period noted by the EDD.

 Author:  Robin Noah, Executive Coaches of Orange County, www.ECofOC.org