Legal Question in Employment Law in California
My Co-worker was recently told that if she was not happy working at the company any longer, they could �Eliminate� her position thus terminating her employment and allowing her to draw unemployment while looking for another opportunity. Note that this was not a bitter situation at all and was a mutual agreement type thing.
During her meeting with HR to discuss the matter, she was advised that they were going to put �Employee Relocated� on her paperwork, not �Position Eliminated�. This will no doubt put an end to her ability to draw unemployment because as soon as HR responds to the EDD inquiry for unemployment benefits indicating the employee Relocated, an investigation will be launched by EDD.
The company has indicated that they will not contest unemployment benefits, but simply by indicating on the initial inquiry from EDD that the employee �relocated� and thus was terminated, that will cause a red flag and start the process in place for EDD to deny benefits as the employee resigned to relocate.
Am I correct in my assumption?
1 Answer from Attorneys
I do not believe you are correct. If the employee's position was indeed eliminated, she can report that fact to the EDD. She does not need to report what HR put on its papers. If the employer truly is not going to challenge unemployment benefits, then there should be no problem.
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