Miscellaneous MI 30

Cancellation of Claims

There are no specific provisions in the Unemp. Ins. Code or Title 22 for cancelling a valid unemployment insurance claim. However, in certain circumstances, the claimant may have the right to have a valid claim cancelled. (Refer to FOM Determinations for procedures.)

In Solway v. California Employment Development Department, a 1978 Superior court case, EDD entered into a Stipulation whereby the Department agreed to make the following changes in Department practices:

"Right to Cancellation of Claims

(a) Right of Cancellation of Claims within 30 days of filing.

The Department shall develop and implement a new procedure whereby claimants will be permitted to cancel a claim up to and including 30 days after the mailing of the Notice of Computation provided that they have not as of that date received and cashed their first benefit check. The procedure will specify that claimants may choose to cancel a claim pursuant to the above conditions and file at a later date. If a claim is cancelled pursuant to this procedure the claimant will not be allowed to return to the first filing date should the later date prove not as advantageous as believed. This procedure will operate prospectively only. . . . In addition, the above-mentioned cancellation procedure will be unavailable to claimants who have been issued a Notice of Determination disqualifying or holding him or her ineligible for benefits . . . . "

The Stipulation also held that the Department must notify claimants of their right of claim cancellation prior to filing a new claim, and that there would be no limitation on the use of this right of cancellation.

To exercise the Solway claim cancellation option, three conditions must be met:

  • Cancellation must be requested within thirty days of the issue date or mailing date of the DE 429 (such time limit may be extended upon a showing of good cause), and
  • The claimant has not received and cashed his or her first benefit check, and
  • No Notice of Determination disqualifying the claimant has been issued.

NOTE: Solway is not a basis for backdating a claim. Refer to MI 10 for information regarding policy for backdating claims and FOM Completion for backdating procedures.