The Employment Development Department (EDD) is an extension of the state of California's Labor and Workforce Development Agency. This department renders a host of services to California workers apart from being the largest agency in California that collects taxes. Below are a few questions that have been answered regarding EDD: Q. What are the possible consequences that a company may need to face if it is audited by the EDD in California? The Employment Development Department is often looking at misclassification of employees while auditing. If there are taxes that needed to be paid, but withheld by the company and this is noticed by the EDD, then the EDD may levy severe penalties and demand the company to return the tax-related withholdings. Few tax-related withholdings that are paid by the employer are: unemployment and state disability insurance payments, employment training, and personal income taxes. If the company tries to fabricate proof that its employees are independent employees or are found paying cash to their employees by the EDD, then the company may be subjected to harsh penalties. Q. Can an employee file an appeal against a company if it falsely accuses the employee of violating a company rule and denies him/her unemployment benefit? One may file an appeal if there is evidence to prove that the termination was incorrect. The employee may present a detailed version of the happenings at work or may give a concise account of what transpired. The odds of being granted unemployment benefits would be more if more evidence is provided at the hearing. However, the EDD would need to prove that the violation was done purposely or due to misconduct before the unemployment benefits are refused. For the EDD to refuse the unemployment benefits, it should be able to prove that the violation was not just a mistake but was intentional. Q. Can an employee be penalized for honestly reporting the days for which he/she was paid versus the actual days worked, which indicated that he/she was overpaid? In such an event the employee should clarify to the judge that the employee was not trying to cheat the EDD. Instead, he/she was just reporting the weeks for which a payment was received for the work performed, due to long lapses in pay from the employer. One should also explain that the payment would be irregular for the kind of job being performed, which brought about financial hardship.. The manner in which the claim was made led to the unemployment for the week. As per law an employee is required to report any earned wages for the week. Therefore, the employee would need to justify that the wages are paid every six weeks instead of weekly or bi-weekly. Q. Consider a situation where an employee is subjected to racial slurs was denied lunch breaks and also made to commit fraud. Can such an employee, in the state of California, appeal an UI claim by the EDD? If an employee was terminated under such a circumstance, it would be called a construction termination. Basically, it is a situation where the environment is not conducive for an employee to work and he/she is forced to quit the job. Further, the rights are withheld. Of the many requirements of the California Labor Law, one of them states: “No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than 30 minutes, except that when a work period of not more than six (6) hours will complete the day's work the meal period may be waived by mutual consent of the employer and the employee. Unless the employee is relieved of all duty during a 30 minute meal period, the meal period shall be considered an "on duty" meal period and counted as time worked. An "on duty" meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time. California Code of Regulations, Title 8, §11040” Q. Is there a particular reason why a judge would try to verify if one was terminated for misconduct when the termination happened due to unsatisfactory job performance? This is at the time of going to an appeal hearing for an Unemployment Insurance denial? An employee would not be eligible to receive unemployment benefits if the termination was due to misconduct. Therefore, the judge would want to ensure that the employee did not purposely perform badly. If the judge is convinced that the employee was not able to meet the performance standards required by the company for no fault of the employee, then the employee may be eligible for the unemployment benefits. EDD is prevalent in California and employees in the state would have dealt with them. However, many of them are not aware of the effect EDD has on the workforce in California. You can take the help of an employment lawyer if you need more information about EDD.
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