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Legal References for Unemployment

By applying for unemployment benefits, you agree to the following state and federal laws.

Overpayments are a part of the Benefit Payment Control (BPC) program. BPC’s purpose is to protect the integrity of the UI Trust Fund by:

  • Preventing improper payment of benefits.
  • Detecting improper payments.
  • Recovering overpayments.
  • Prosecuting cases involving fraud.

Legal Authority

The BPC’s legal authority can be found in the Social Security Act (Title III) and the Internal Revenue Code. For more information on the interpretation of the Social Security Act’s federal and state requirements, review the following resources:

California Unemployment Insurance Code

  • Section 1253(a) states all claims for benefits must be filed in accordance with EDD regulations.
  • Section 1257(a) states that if an individual gives false information to the EDD in order to obtain benefits, the individual may be subject to a penalty.

California Code of Regulations

  • Title 22, Section 1326-2 (b)(2)(A) states the EDD may require a claimant to verify the SSN as being the one issued to him or her by the SSA if the information available to the EDD indicates that the SSN may belong to another person or is not a valid number.

Federal CARES Act of 2020

Code of Federal Regulations

  • Title 20, Section 625.6 provides the requirements for calculating an individual’s PUA weekly benefit amount based on information provided when the claim was filed. It also requires individuals to provide proof of income to support the weekly benefit amount that was initially calculated based on information the individual provided when the claim was filed.
  • Title 20, Section 625.14 states that individuals are required to repay any PUA benefits they were not entitled to.

U.S. Department of Labor Requirements

  • Unemployment Insurance Program Letter 16-20 requires that the EDD follow specific rules when filing and paying PUA claims.
  • Unemployment Insurance Program Letter 16-20, Change 1 states that only 2019 calendar (tax) year net income can be used to calculate PUA benefits. It also states the types of documents individuals must provide as proof of income to support a weekly benefit amount of more than $167.
  • Unemployment Insurance Program Letter 16-20, Change 2 provides additional guidance on proof of income requirements and overpayments, including:
    • An individual’s 2019 calendar (tax) year net income must be used to support a higher weekly benefit amount.
    • If an individual cannot provide proof of income to support a higher weekly benefit amount, the amount must be reduced to $167 and they will be required to repay the difference for each week they were paid.

California Unemployment Insurance Code

Federal CARES Act of 2020

Federal Continued Assistance for Unemployed Workers Act of 2020

  • Section 241(b)(2) (Public Law 116-260) creates the requirement that individuals receiving PUA after December 27, 2020, must submit documentation to prove they had a recent attachment to the labor force.

Code of Federal Regulations

U.S. Department of Labor Requirements

Last Revised: 02/17/2022