Ask Temp X: Unemployment

Hi. Temp X here. As a former Temp (Wow! It's still weird saying that.) and master of the California Employment Development Department, I'm frequently asked questions about how unemployment works. Here's a recent example:

"I read/saw your post today about your 2009 salary and collecting unemployment. I’m just curious about the unemployment process...What if EDD sends you a check but you end up working 1-2 days that week? Do you send some money back? Do you need to work through a temp agency for a particular amount of time?

The simple answer to the questions are: "No. You don't send money back. The EDD checks come AFTER your pay period, not before. They adjust your check accordingly." and "Yes, you need to work for a certain period of time." But if this doesn't offer enough detail, I've written up the following example.*

Molly had a steady temp gig at MTV until she was (with no notice) replaced with an unpaid intern. Depressed by her misfortune, Molly goes on a Vegas bender and blows through her savings at the Blackjack table [Tip: Splitting a pair of 10s = bad idea]. She wakes up Monday morning with a wicked hangover and an ever-growing credit card balance. Molly immediately makes two calls -- one to California EDD and the other to Jules at Friedman Personnel.

Based on her pay history, EDD determines Molly's weekly benefit to be a paltry $300. Moments later, Jules calls. He got Molly a one-day gig working for a certain talent agent with a Napoleon complex and small genitals. At this job, she earns $88 in gross wages (8 hours x $11/hour).

A week later, Molly receives her first unemployment form. She quickly fills it out and checks the "Yes" box indicating she worked that week. She lists her gross wages as $88 and mails the form back to EDD.

Once EDD receives Molly's claim, they take her weekly benefit and (more or less) subtracts whatever she earned that week. They then issue a Molly a check for the remainder -- or somewhere around $220.**

That's pretty much it. After re-reading this, I'm starting to wonder if this was helpful or just more confusing. My best suggestion is don't lose your job.


* The dollar amounts listed are an approximation. I'm not completely sure how EDD does their math. And considering their phone system is one step below two cans and a string, I'm not sure they do either.

**If the Federal stimulus program is still running, you get an extra $25 per week.