Unemployment compensation: benefits payable: collection.

Existing law provides for the payment of unemployment compensation benefits to eligible persons who are unemployed through no fault of their own through a federal-state unemployment insurance program administered by the Employment Development Department, subject to oversight by the Director of Employment Development. Unemployment compensation benefits are paid from the Unemployment Fund, and the expenses of administering the unemployment insurance program are paid from the Unemployment Administration Fund. Under existing law, if an employer fails to keep and furnish to the director any required records or reports necessary for a full determination, decision, or other proper disposition of a claim for unemployment benefits within a reasonable time as the director may by rule, regulation, or procedure prescribe, it is to be conclusively presumed that the claimant is entitled to the maximum total amount of benefits payable unless the director deems sufficient a lesser total amount is due and owing to the claimant. This bill would require, on and after January 1, 2021, that if an employer, within 10 days after receiving an initial notice from the director of the need to furnish over required records or reports necessary for a full determination of a claim for unemployment compensation benefits, fails to furnish those required records or reports to the director, it be conclusively presumed that the claimant is entitled to the maximum total benefits payable, unless the director determines, based on the evidence, that the claimant is entitled to a lesser amount. The bill would authorize the director to extend the 10-day deadline on a determination of good cause for a delay in the furnishing of required records or reports for a full determination of any claim for unemployment compensation benefits. Under existing law, employer contributions to the Unemployment Fund are required to be paid by each employer to the department for deposit in the Unemployment Fund, and become delinquent if not paid in accordance with specified timeframes and procedures. Under existing law, any employer who, without good cause, fails to pay required contributions is subject to a penalty of 15% of the amount of those contributions, in addition to payment of interest and other specified penalties. This bill would authorize the director to delegate their authority to recover and collect contributions from an employing unit that has 5 or more persons claiming unemployment benefits to the Attorney General. The bill would require, if this authority is delegated to the Attorney General, that the Attorney General collect the entire required contribution from the employing unit, including interest and penalties, and this amount be deposited into the Unemployment Fund. The bill would require the director to reimburse the Attorney General for their reasonable regulatory costs in recovering and collecting contributions from the Unemployment Administration Fund. The bill would define "employing unit" for purposes of this provision to mean a business or employer responsible for issuing a total of more than 500 Internal Revenue Service Form W-2s or Internal Revenue Service Form 1099-NECs.