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  • How Part-Time Return to Work Affects Employee’s UI Benefits

    By  Ellen Savage  - September 4, 2020
     

    My employee has been on furlough and collecting unemployment insurance (UI). If I bring her back to work part time, what is the maximum number of hours she can work before she loses her UI benefits?

    Rather than looking at the number of hours worked, California adjusts UI benefits based on what the employee’s earnings are when she returns to partial work.

    When an employee is receiving UI benefits and then begins to work some limited hours again, she must report her earnings every two weeks to the Employment Development Department (EDD).

    Depending on how much is earned each week, EDD will use one of two formulas to determine if the employee is still entitled to collect some portion of her weekly UI benefit amount.

    Note that the calculation is based only on the UI benefit provided by the state of California. Any federal supplement—such as the additional $600 that was provided under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act or the $300 additional federal benefit that will take its place—is not taken into account.  Read More