Terminating the Employment Relationship

voluntarily quit and therefore, is not entitled to receive unemployment compensation. Regardless of the employer’s notion of what is considered “good cause” for the termination, the Unemployment Insurance Code is very specific as to what types of employee conduct or misconduct will preclude the individual from receiving unemployment compensation. Under the Unemployment Insurance Code, an employee is disqualified from receiving unemployment compensation if the employee left employment voluntarily, without good cause, or was discharged for misconduct connected with employment. 393 For the most part, when an employee separates from employment with the employer, the California Economic Development Department (“EDD”) will presume that the separation was not based on m isconduct. Moreover, when an employee voluntarily resigns from employment, EDD will also presume that the employee left for good cause. The presumption that the employee left for good cause is a rebuttable presumption. Thus, the employer will have an opportunity to show otherwise. 394 The Unemployment Insurance Code is construed liberally, however, in favor of the employee. 395 Unemployment Insurance Code section 1089-1 requires employers to provide certain notices to the employee at the time of separation from employment, similar to COBRA notification discussed below. (22 C.C.R. section 1089-1 396 .) Specifically, section 1089-1 provides that when an employer discharges, lays off, or places an employee on leave of absence, the employer shall give to the employee the following notices: (1) Written notice of the employee’s unemployment insurance benefit rights by providing the pamphlet identified in Unemployment section 1089-1(b)(3). The notice of unemployment insurance benefit rights shall be given no later than the effective date of the action; and (2) Written notice regarding the change in the employee's status. The notice of change of status shall be given no later than the effective date of the action and shall contain at a minimum: (A) the name of the employer; (B) the name of the employee; (C) the social security account number of the employee; (D) whether the action was a discharge, a layoff, a leave of absence, or a change in status from employee to independent contractor; and (E) the date of the action.

1. V OLUNTARILY L EAVING W ORK W ITHOUT G OOD C AUSE

In order to determine whether or not the employee voluntarily resigned from employment, the EDD determines the moving party in the resignation.

If the employee left employment while work was available, the EDD will presume that the employee left voluntarily. On the other hand, if the employer did not permit the employee to work while work was available, then the employer was the moving party and the resignation was not voluntary. 397 Good cause for leaving work occurs when an employee leaves employment for a compelling reason and a reasonable person in similar circumstances would have felt so compelled. 398 This determination is analyzed on a case-by-case basis.

Terminating the Employment Relationship ©2022 (s) Liebert Cassidy Whitmore 128