Legal Question in Business Law in California

A small California company was anticipating signing a long-term contract to do some landscape work for a large firm. In this anticipation, the firm hired an office assistant for the added work. Unfortunately, the contract will most likely not go through. The new employee will have to be laid off after a total of four to five weeks of employment. Will this employee be able to collect unemployment? How is this lay-off going to affect the company as far as payroll and other taxes are concerned? Should the owners of the company be worried about being charged more due to the employee's unemployment claim? Please help. Thank you.


Asked on 9/28/10, 3:02 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

The employee will be eligible for 99 weeks of unemployment insurance benefits if he or she had 6 months of covered employment within the past year. If not, not. You would likely have an increase in your unemployment insurance premiums if he or she is presently eligible, or if he or she accumulates sufficient credits from future employment within the next year and is again laid off. If you have more than 20 employees and this employee received a health insurance benefit, the employee could be eligible for COBRA continuation coverage.

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Answered on 10/03/10, 3:25 pm


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