Reasons For Unemployment Denial

Introduction

Unemployment benefits in California often create contentious issues among businesses, taxpayers, the unemployment insurance (UI) benefits department, and the state. In addition, as the state’s working environment develops and changes, the workforce changes to incorporate more part-time workers and independent contractors. Recent laws regarding independent workers in California, including AB5, have further complicated a complex playing field.

Over the past decade, unemployment fraud cases have risen across the country. These cases stem partly from identity theft and are also due to confusion surrounding classifying workers, and they impact individual taxpayers and small businesses. Of course, some people also make fraudulent unemployment claims to collect money they do not deserve. These deceitful actions continue to muddy the waters surrounding unemployment benefits in California.

In this article, our employment attorney for employers will explain why it is vital to have an unemployment benefits attorney on hand, regardless of whether the individual is an employee, an independent contractor, the owner of a business, or they work in another capacity. Retaining a trusted unemployment benefits lawyer is essential in this day and age, and below, we will explain why this is so.

Top 11 Reasons that Unemployment Benefits are Denied:

1. The agency determines the person quit their job on their terms, and it was their idea
2. The agency sees that the person’s employer appeals to the individual’s eligibility for benefits.
3. The agency decides that the person was not impacted by the factors they cite, such as COVID-19 or a recession.
4. The agency views and researches a prior claim that disqualifies the person from benefits. For example, the individual lied to the EDD before the current request.
5. The agency made a clerical or computing error and did not agree to pay the amount back or the rightful benefit amount.
6. The agency sees evidence of past work-related misconduct.
7. The agency finds that the person is still working.
8. The agency finds errors in the application, such as an expired license, missing deadlines, or other errors or misstatements.
9. The agency finds factual errors in the application.
10. The agency speaks with a former supervisor or employer who challenges the worker’s application in some manner or provides evidence of illicit past behavior or wrongdoing.
11. The agency refuses to backdate the claim Refusal to backdate the effective date of your claim to an earlier date.

What Can Individuals Do if the EDD Denies Them Unemployment?

When California workers disagree with the EDD’s decision regarding their capacity to receive unemployment benefits, they have options. At Nakase Wade, our skilled legal team is experienced in employment law cases and prepared to advocate on behalf of our clients. Our attorneys begin by making sure we understand the facts of the case and then advise our clients concerning a path of action. In addition, we often help clients file appeals to the EDD to get their benefits paid promptly. Some claims equal thousands of dollars, and many clients are eligible for backpay for their UI claims.

Our lawyers understand how difficult it is when the EDD denies claimants benefits, sometimes without much explanation. Cutting through the red tape and finding out what really happened is complex and overwhelming, and it is best to let qualified professionals handle the situation. For example, sometimes a clerical error or a computer systems error costs claimants thousands of dollars and their right to peace of mind. No one can find a new job when they are worried about their families’ finances or ability to survive.

When Can Individuals Collect UI Benefits?

In California, if the system works correctly, individuals who are fired or suffer an unforeseen event that results in job loss should receive UI monetary benefits. Workers pay these benefits with each paycheck, and they should be able to access their benefits if the situation permits. Plus, California’s companies pay taxes on employees’ wages to maintain the UI department.

The EDD is responsible for administering unemployment insurance, and the agency is culpable when errors occur. When a company terminates a worker, the individual should apply for unemployment benefits online. They will need to supply current information such as their employment details, past work history, personal information, paystub and salary information, social security number and tax information, and more. The department will notify the applicant if they qualify for unemployment benefits.

Notably, independent contractors in California cannot receive unemployment benefits. When contract workers apply for UI benefits, this sets off an alert and “red flag” for the EDD and often triggers an EDD audit. The audit occurs even if the worker was misinformed or had no idea they were not permitted to collect benefits in the state.

The fact that California offers some unemployed individuals benefits helps workers improve their lives and stay afloat. Throughout the United States, our workforce relies on unemployment benefits to help people reenter the workforce while supporting themselves, their families, and their loved ones. However, the current system is imperfect, and some people seek to abuse it by collecting payments when they are not eligible. Additionally, changes to the style and structure of the workforce, pandemics, economic recessions, and new, misunderstood state and federal laws and regulations contribute to statewide and national unemployment problems.

Which Individuals Typically Cannot Receive Unemployment Benefits?

First, workers who are fired “for cause” usually are forbidden from collecting unemployment benefits. Terminating “for cause” means the employee committed misconduct or violated workplace rules.

For example, if workers refuse to perform their duties or fulfill the obligations outlined in their contract, they may be denied benefits. In addition, if the worker commits an offense such as harassment and their boss terminates them, they may also be unable to obtain support through unemployment benefits. However, based on the subjectivity of these conditions, some workers who feel the EDD’s decision (or their employer’s decision beforehand) is unjust may file an appeal.

Second, workers who opt to quit their jobs usually cannot receive monetary benefits. Voluntarily leaving a job usually does not translate into the collection of unemployment insurance; however, this rule has major exceptions. For example, suppose an employee is subject to harassment, discrimination, a hostile work environment, or other difficult conditions. In that case, they may be able to volunteer to leave, and then collect UI benefits from the state.

Why Does the EDD Deny Worker’s Benefits?

When California workers lose their jobs, the EDD’s website is the first place many of them turn. Here, newly unemployed workers file for unemployment benefits, but they must follow the correct process. First, workers must disclose information to the EDD about their former employer, work history, and other personal information. Then, the EDD makes a judgment regarding benefit eligibility.

As the EDD representatives verify worker information and run background checks, they contact other individuals and employers from the worker’s past. At this point, workers have little to no protection if, for example, a disgruntled former employer decides to lie to the EDD about a former worker. Indeed, not much can stop a former supervisor from providing misleading information to the EDD.

It may be out of a worker’s control when a former supervisor bends the truth, but these actions can dramatically impact the chance of collecting UI benefits. For example, based on the statements of a former employer, the EDD can decide not to award monetary benefits to the worker, even if they deserve them.

For example, a supervisor or boss could terminate a worker because the business slumps. Then, they could tell the EDD that the worker quit on their terms. These acts of misinformation may not be common, but they occur more often than many think.

The EDD must deal with a constant outpouring of unemployment claims, and though the agency does its best to deal reasonably with each worker, they routinely make mistakes.

Can Workers File Unemployment Benefits File Appeals?

When California workers apply for unemployment benefits and the EDD denies them, they can appeal the agency’s decision. The best way for workers to challenge any decision by the EDD is to immediately contact a skilled employment attorney for counsel.

The most important aspect of the appeal is presenting the right information. Beforehand, an experienced lawyer can help individuals collect and organize the information that will give them the best chance to overturn the EDD’s decision.