Federal & State Regulations | Unemployment - California

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Summary of differences between federal and state regulations

Coverage

In California, the definition of employer includes a minimum payroll of $100 in a quarter.

The agricultural labor provisions cover employer units with one worker at any time and wages in excess of $100 in a calendar quarter.

California domestic service provisions cover in-home support services provided under the Welfare & Institution Code.

Workers are considered employees unless contract of hire, written or oral, express or implied.

Workers are considered employees unless:

The worker is free from control or direction in the performance of the work under the contract of service and in fact;
The service is performed either outside the usual course of the business for which it is performed or is performed outside of all places of business of the enterprise for which it is performed; and
The individual is customarily engaged in an independent trade, occupation, profession, or business.

In addition, the following tests are considered:

In locality, work is usually done by specialist without supervision;
Specialized skill is required in the particular occupation;
Length of time for which the person is employed suggests an independent relationship;
Method of payment is by the job rather than by the time;
Parties do not believe they are creating a master and servant relationship; and
Principal is not in business.

Exclusions from the definition of employment include:

Real estate agents on commission,
Casual labor not in the course of employers business, and
Part-time service for nonprofit organizations exempt from federal income tax.

The following student employment is excluded from coverage:

Student nurses and interns in employ of a hospital, and
Students working for schools.

California provisions for corporate officers exempt services performed by an individual in the employ of a corporation of which he/she is the majority or controlling shareholder and an officer if not subject to FUTA. California also exempts an officer or shareholder of an agricultural corporation unless the corporation is an employer defined under FUTA.

State coverage is required for services performed for religious, charitable, or educational nonprofit organizations. Although coverage is required only for those organizations employing four or more workers in 20 weeks, a number of states have provisions that cover smaller nonprofit organizations as well. This state has expanded coverage provisions beyond federal requirements.