SECTIONS 1025-1037 - California Statutes

UNEMPLOYMENT INSURANCE CODE

SECTION 1025-1037

1025. The director shall keep separate records of the amounts paid
into the fund by each employer in his or her own behalf, or
chargeable to him or her as benefits; but nothing in this division
shall be construed to grant any employer or his or her employees
prior claims or rights to the amount contributed by him or her to the
fund, either on his or her own account or on behalf of his or her
employees. The amount of employer contributions, advances, or
reimbursements under Article 5 (commencing with Section 801) of
Chapter 3 of this part or Section 821, and all other amounts payable
to the fund, shall be pooled and available to pay unemployment
compensation benefits to any employee entitled thereto, regardless of
the source of contributions or any other amounts.

1026. (a) The director shall maintain a separate reserve account
for each employer, and shall credit each reserve account with all the
contributions paid on his or her behalf.
(b) Unemployment compensation benefits paid to an unemployed
individual during any benefit year shall be charged against the
reserve account of his or her employer during his or her base period.
If the individual performed services in employment for more than one
employer during his or her base period, unemployment compensation
benefits paid to him or her shall be charged against the respective
reserve accounts of the employers in the proportion that the total
wages paid to the individual in employment for each employer bears to
the total wages paid to the individual in employment for all
employers during the base period.
(c) The director shall credit the interest earned by the
Unemployment Fund to each positive reserve employer account in
proportion to the amount the account bears to the total of all
positive reserve accounts.
(d) Except as provided by Sections 803 and 821, in proportion to
the amount each employer's taxable wages bears to the total of all
employers' taxable wages, the director shall credit to each employer
reserve account all of the following:
(1) Benefit overpayments collected in the four quarters prior to
the computation date.
(2) Positive balances in reserve accounts canceled pursuant to
Section 1029.
(3) Other nontax income.
(e) Except as provided by Sections 803 and 821, in the same
proportion as provided in subdivision (d), the director shall charge
to each employer reserve account all of the following:
(1) The increase in the total of all negative reserve account
balances as computed by subtracting the total of all negative reserve
account balances on July 31 of each year prior to the cancellations
required by Section 1027.5 from the total of all negative reserve
account balances on the prior July 31 after the cancellations
required by Section 1027.5, except as provided by Section 1144.
(2) Benefit overpayments established in the four quarters prior to
the computation date.
(3) Benefits not charged to employer reserve accounts pursuant to
Section 1032, 1032.5, 1034, 1035, 1036, 1335, 1338, or 1380.
(4) Other items of expense and benefit charges not included in
active employer reserve accounts.

1027.1. On the computation date in 1966, the portion of each
negative reserve balance which has not previously been charged to the
balancing account shall be transferred to that account and the
employer's reserve account thereupon canceled. The computation on
such date for calendar year 1967 shall be based upon the status of
the employer's account prior to such transfer and cancellation
subject to the requirements of Section 982. The computation for each
calendar year beginning with calendar year 1968 shall be in
accordance with the requirements of Section 982 and an employer whose
reserve account has been canceled under this section shall be
considered as first becoming a subject employer on July 1, 1966.

1027.5. On the computation date each year, the amount each employer'
s net balance of reserve is more negative than 21 percent of the
employer's average base payroll shall be canceled from his or her
reserve balance.
The amendment made to this section by Chapter 1296 of the Statutes
of 1984 shall be deemed to have become operative on June 30, 1984,
and the amendment shall be given retroactive effect to that date.

1027.6. On the computation date of June 30, 1983, the amount each
employer's net balance of reserve was more negative than 12 percent
of the employer's average base payroll shall be canceled from his or
her reserve balance.

1028. The charge of unemployment compensation benefits to an
employer's account required by Section 1026 shall be made in such
manner as to include as of each computation date all unemployment
compensation benefit payments made on or before the computation date.
In computing the charge to employers' accounts, a fractional part of
a dollar shall be disregarded unless it amounts to one-half dollar
($0.50) or more, in which case it shall be increased to one dollar
($1).

1029. (a) Whenever an employer ceases to pay wages in employment,
the reserve account of the employer, unless it has been transferred
under Article 5 (commencing with Section 1051), shall be canceled on
the records of the department after a period of three consecutive
years has elapsed following the latest calendar quarter in which the
employer paid wages in employment.
(b) Whenever a period of three consecutive years has elapsed,
commencing with the effective date of an election by any entity to
finance benefits pursuant to Section 803, any portion of the reserve
account of the entity that has not been subject to use pursuant to
Section 712 or 713, unless that portion has been reacquired by the
entity by termination of the election under Section 803 prior to the
expiration of the three-year period, shall be canceled on the records
of the department. Section 982 shall apply to that entity.
(c) Upon the termination of an election by a school employer to
finance benefits pursuant to Article 6 (commencing with Section 821)
of Chapter 3, any favorable balance in the account of the school
employer under the election shall be canceled on the records of the
department.

1030. (a) Any employer who is entitled under Section 1327 to
receive notice of the filing of a new or additional claim may, within
10 days after mailing of the notice, submit to the department any
facts within its possession disclosing whether the claimant left the
employer's employ voluntarily and without good cause or left under
one of the following circumstances:
(1) The claimant was discharged from the employment for misconduct
connected with his or her work.
(2) The claimant's discharge or quitting from his or her most
recent employer was the result of an irresistible compulsion to use
or consume intoxicants including alcoholic beverages.
(3) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
(4) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to a place or to join him or her at a
place from which it is impractical to commute to the employment, and
to which a transfer of the claimant by the employer is not available.
(5) The claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse.
The period during which the employer may submit these facts may be
extended by the director for good cause.
(b) Any base period employer that is not entitled under Section
1327 to receive notice of the filing of a new or additional claim and
is entitled under Section 1329 to receive notice of computation may,
within 15 days after mailing of the notice of computation, submit to
the department any facts within its possession disclosing whether
the claimant left the employer's employ voluntarily and without good
cause or left under one of the following circumstances:
(1) The claimant was discharged from the employment for misconduct
connected with his or her work.
(2) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
(3) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to a place or join him or her at a
place from which it is impractical to commute to the employment, and
to which a transfer of the claimant by the employer is not available.
(4) The claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse.
The period during which the employer may submit these facts may be
extended by the director for good cause.
(c) The department shall consider these facts together with any
information in its possession. If the employer is entitled to a
ruling under subdivision (b) or to a determination under Section
1328, the department shall promptly notify the employer of its ruling
as to the cause of the termination of the claimant's employment. The
employer may appeal from a ruling or reconsidered ruling to an
administrative law judge within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling. The 20-day
period may be extended for good cause, which includes, but is not
limited to, mistake, inadvertence, surprise, or excusable neglect.
The director is an interested party to any appeal. The department may
for good cause reconsider any ruling or reconsidered ruling within
either five days after the date an appeal to an administrative law
judge is filed or, if no appeal is filed, within 20 days after
mailing or personal service of notice of the ruling or reconsidered
ruling. However, a ruling or reconsidered ruling that relates to a
determination that is reconsidered pursuant to subdivision (a) of
Section 1332 may also be reconsidered by the department within the
time provided for reconsideration of that determination.
(d) For purposes of this section only, if the claimant voluntarily
leaves the employer's employ without notification to the employer of
the reasons for the leaving, and if the employer submits all of the
facts within its possession concerning the leaving within the
applicable time period referred to in this section, the leaving is
presumed to be without good cause.
(e) An individual whose employment is terminated under the
compulsory retirement provisions of a collective bargaining agreement
to which the employer is a party shall not be deemed to have
voluntarily left his or her employment without good cause.
(f) For purposes of this section "spouse" includes a person to
whom marriage is imminent, and "domestic partner" includes a person
to whom a domestic partnership, as described in Section 297 of the
Family Code, is imminent.

1030.1. (a) If the employment of an individual is terminated due to
his absence from work for a period in excess of 24 hours because of
his incarceration and he is convicted of the offense for which he was
incarcerated or of any lesser included offense, he shall be deemed
to have left his work voluntarily without good cause for the purposes
of Sections 1030, 3701, and 4701. A plea or verdict of guilty
irrespective of whether an order granting probation or other order is
made suspending the imposition of the sentence or whether sentence
is imposed but execution thereof is suspended, or a conviction
following a plea of nolo contendere, is deemed to be a conviction
within the meaning of this section.
(b) Notwithstanding any other provision of this division, any
ruling made prior to a conviction or other final disposition of the
criminal complaint or accusation by the court as to whether an
individual who is terminated due to his absence from work because of
incarceration voluntarily leaves without good cause may, if no appeal
has been taken from the ruling, for good cause be reconsidered by
the department during the benefit year or extended duration period or
extended benefit period to which the ruling relates. Notice of any
reconsidered ruling shall be given to the employer which received
notice under Section 1030 or 3701 or 4701, and the employer may
appeal therefrom in the manner prescribed in Section 1328 or 3655 or
4655.

1031. No ruling made under Section 1030 may constitute a basis for
the disqualification of any claimant but a determination by the
department made under the provisions of Section 1328 may constitute a
ruling under Section 1030.

1032. If it is ruled under Section 1030 or 1328 that the claimant
left the employer's employ voluntarily and without good cause, or
left under one of the following circumstances, benefits paid to the
claimant subsequent to the termination of employment that are based
upon wages earned from the employer prior to the date of the
termination of employment shall not be charged to the account of the
employer, except as provided by Section 1026, unless the employer
failed to furnish the information specified in Section 1030 within
the time limit prescribed in that section or unless that ruling is
reversed by a reconsidered ruling:
(a) The claimant was discharged by reason of misconduct connected
with his or her work.
(b) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
(c) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to a place or to join him or her at a
place from which it is impractical to commute to the employment, and
to which a transfer of the claimant by the employer is not available.
(d) The claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse.
(e) The claimant left the employer's employ to take a
substantially better job.
(f) The claimant's discharge or quitting from his or her most
recent employer was the result of an irresistible compulsion to use
or consume intoxicants including alcoholic beverages.
(g) For purposes of this section "spouse" includes a person to
whom marriage is imminent, and "domestic partner" includes a person
to whom a domestic partnership, as described in Section 297 of the
Family Code, is imminent.

1032.5. (a) Any base period employer may, within 15 days after
mailing of a notice of computation under subdivision (a) of Section
1329, submit to the department facts within its possession disclosing
that the individual claiming benefits is rendering services for that
employer in less than full-time work, and that the individual has
continuously, commencing in or prior to the beginning of the base
period, rendered services for that employer in such less than
full-time work.
(b) The department shall consider facts submitted under
subdivision (a) of this section together with any information in its
possession and promptly notify the employer of its ruling. If the
department finds that an individual is, under Section 1252,
unemployed in any week on the basis of his or her having less than
full-time work, and that the employer submitting facts under this
section is a base period employer for whom the individual has
continuously, commencing in or prior to the beginning of the base
period, rendered services in such less than full-time work, that
employer's account shall not be charged, except as provided by
Section 1026, for benefits paid the individual in any week in which
such wages are payable by that employer to the individual. The
employer may appeal from a ruling or reconsidered ruling to an
administrative law judge within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling. The 20-day
period may be extended for good cause, which shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.
The director shall be an interested party to any appeal. The
department may for good cause reconsider any ruling or reconsidered
ruling within either five days after an appeal to an administrative
law judge is filed or, if no appeal is filed, within 20 days after
mailing or personal service of the notice of the ruling or
reconsidered ruling.

1033. The director shall not less frequently than once each year
furnish each employer with an itemized statement of the charges to
the reserve account, and a statement of the reserve account showing
the credits and charges, the net balance of the reserve account and
the contribution rate for the applicable rating period.

1034. (a) The employer, within 60 days after the date of mailing of
any statement of charges or credits and charges to the reserve
account, or within an additional period not exceeding 60 days which
may for good cause be granted by the director, may file with the
director a written protest on any item shown thereon. The protest
shall set forth the specific grounds on which it is made. No protest
may be made on the ground that a claimant was ineligible for a
benefit payment where the employer was notified as required by this
division and any authorized regulation of the filing of a claim for
the benefits or of a determination of the claimant's eligibility
therefor and the employer failed to file a timely appeal on the
benefit claim, or a final decision of an administrative law judge or
of the appeals board affirmed the payment of the benefits. Except as
to corrections made by the director as provided in Section 1036, the
contribution rate and other items shown on any such statement of
charges or statement of account shall be final unless a protest is
filed within the time prescribed in this section.
(b) The employer, within 30 days after the last working day of
March, may file a protest on the grounds that the director did not
allow voluntary unemployment insurance contributions to the reserve
account in accordance with Section 976.5.

1035. The director shall give notice pursuant to Section 1206 to
the employer of his or her action on a protest filed under Section
1034.

1036. (a) The director shall give notice, pursuant to Section 1206,
to the employer of the correction of any error which the director
finds in any statement of account or statement of charges. Except in
the case where fraud, intent to evade, misrepresentation, or willful
nondisclosure is found, the notice of correction shall be issued
prior to the expiration of the rating period to which a statement
relates.
(b) Any additional amount of contributions resulting from an
increased contribution rate caused by the correction of any error
that the director finds in any statement of reserve account or
statement of charges shall be assessed within 180 days from the
postmarked date of the notice of correction. These assessments shall
be issued in accordance with Article 8 (commencing with Section
1126). However, these assessments shall become final on the last day
of the calendar month following the calendar quarter in which the
assessment is issued.
(c) Any overpaid amount of contributions resulting from a reduced
rate caused by the correction of an error that the director finds on
any statement of reserve account or statement of charges shall be
refunded within 180 days of the postmarked date of the notice of
correction. These refunds shall be issued in accordance with Article
9 (commencing with Section 1176).

1037. If a protest involving the contribution rate is pending when
any contribution to which such rate relates is due, the employer
shall pay the contribution at the rate shown in the statement
furnished by the director. Such a protest, however, shall constitute
a claim for refund under Article 9 of this chapter, and if a final
determination on the protest reduces the contribution rate the amount
of overpayment shall be promptly credited or refunded as provided in
that article.