California Assembly Bill AB1066

California 2019-2020 Regular Session

• Introduced: 2/21/19
• Refer: 3/25/19
• Report Pass: 3/26/19
• Refer: 3/27/19
• Report Pass: 4/22/19
• Refer: 4/23/19
• Report Pass: 4/29/19
• Refer: 5/1/19
• Refer: 5/15/19
• Report Pass: 5/16/19
• Engrossed: 5/22/19
• Refer: 5/23/19
• Refer: 5/29/19
• Report Pass: 7/10/19
• Refer: 7/10/19
• Refer: 8/12/19
• Report Pass: 8/30/19
• Refer: 7/2/20
• Report Pass: 8/6/20
• Refer: 8/7/20
• Refer: 8/17/20
• Report Pass: 8/20/20
• Refer: 8/31/20
• Enrolled: 8/31/20
• Vetoed: 9/24/20

Caption

Unemployment compensation: benefits payable: collection.

Impact

Beginning January 1, 2021, the bill places greater responsibility on employers to maintain and submit required documentation promptly. Employers who apply for unemployment contributions are encouraged to manage their reporting diligently to avoid presumption against them. Additionally, the bill extends the authority to the EDD to delegate the collection of delinquent contributions from larger employers to the Attorney General. This change is aimed at streamlining the recovery of unpaid unemployment contributions, thus enhancing funding for the Unemployment Fund while ensuring compliance from employers with more than 500 employees.

Summary

Assembly Bill 1066, authored by Assembly Member Gonzalez, aims to amend the Unemployment Insurance Code to enhance the efficiency and effectiveness of unemployment compensation benefits in California. This legislation specifies that if an employer fails to provide necessary records or reports within ten days of being requested by the Employment Development Department (EDD), it will be assumed that the claimant is entitled to the maximum unemployment benefits payable unless evidence suggests otherwise. This presumption serves to expedite claim resolutions and ensures that individuals receive timely financial support during unemployment periods.

Sentiment

The sentiment surrounding AB 1066 appears largely supportive among legislators who view it as a necessary update to an existing and critical social safety net. By reducing complexities in collecting benefits and increasing employer accountability, proponents argue the bill would benefit unemployed Californians who rely on timely financial assistance. However, there may be concerns from small business owners about the increased pressure of record-keeping and potential repercussions if records are not submitted accurately or in a timely manner.

Contention

While most discussions have highlighted the benefits of quicker access to unemployment benefits for claimants, there are worries regarding the practical implications for employers, particularly smaller businesses. The bill's automatic presumption of entitlement could potentially be seen as punitive, affecting employers unfairly if they are unable to gather necessary documentation promptly for reasons outside their control. Legislators debated the balance between protecting workers' rights to benefits and ensuring fairness towards employers, surfacing discussions about the potential logistic overload on small enterprises and the need for support measures during this adjustment.