“With recession-like conditions and a housing crisis pummeling our state, we need to ensure that there are enough unemployment insurance funds available to help Californians facing temporary job losses,” Bass said. “Following immediate hearings on the solvency of the UI Fund, I intend to have legislation introduced after the next legislature convenes in December.”
The UI Fund is supported by an employer-based tax, according to each employer’s payroll. Unemployment Insurance benefits are paid to individuals who have met work-time and earnings requirements, but have lost their jobs due to no fault of their own. The employer tax and the level of benefits paid to workers are derived by formula which considers several variables.
Assemblymembers Coto and Arambula have scheduled a joint hearing of their committees for October 7th from 10:00a.m. to 2:00p.m. to investigate the UI Fund issue. Representatives from the state Employment Development Department, which administers the UI program, will participate along with representatives from business and labor.