Who pays for California's unemployment insurance (UI) program that funds benefits for laid-off workers?
Explanation
California's unemployment insurance benefits are paid from employer contributions under Unemp. Ins. Code §976, and the employer may not recover them from the worker by deduction. (a) is the natural guess because the SDI line on the same pay stub IS withheld from the employee - UI and SDI sit side by side and are funded from opposite directions, which is the distinction worth holding. (c) confuses the state program with the federal FUTA tax, which funds administration and the federal loan account rather than the weekly benefit. (b) describes no program at all; the injured worker is a workers' compensation concept, not a UI one. The employer's rate is experience-rated under §977, so layoffs feed back into cost.
Law Reference: Unemp. Ins. Code §§976, 986This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Which federal document must every U.S. employer complete to verify a new employee's identity and authorization to work?
- Under California's new-hire reporting law, an employer must report each newly hired employee to the EDD within how many days of the start-of-work date?
- Under Labor Code §1174, employers must keep employee payroll and personnel records for at least:
- A former employee applies for unemployment benefits after being laid off due to lack of work. Regarding the claim, the employer generally:
- An employee is fired for repeated, documented misconduct such as theft. When that worker files for unemployment, the likely result is:
- Under Labor Code §1198.5, a current or former employee generally has the right to:
Last reviewed: · editorial process