Unemployment Insurance Program.

(1) Existing law excludes from the definition of "wages," for purposes of the unemployment insurance law, remuneration in excess of $7,000 paid to an individual by an employer during any calendar year, with respect to employment. This bill would, for the calendar year beginning on January 1, 2009, revise this provision to exclude remuneration in excess of $16,600 paid to an individual by an employer during that calendar year and would, for each calendar year thereafter, exclude remuneration paid to an individual by an employer during that calendar year in excess of the greater of $16,600 or an amount equal to 13 of the annualized state average weekly wage, as defined. (2) Existing law requires every employer, with specified exceptions, to pay contributions to the Unemployment Fund at specified rates according to specified contribution rate schedules. This bill would modify these provisions by increasing the contribution rates, as specified, pursuant to a new contribution rate schedule. (3) Existing law provides that no employer or new employer, as defined, is eligible for a contribution rate of more or less than 3.4% for any rating period unless, among other things, his or her reserve account has been subject to benefit charges. This bill would revise these provisions by increasing the contribution rate to 4.5%. (4) Existing law provides that an individual is considered "unemployed" for the purpose of eligibility for unemployment compensation benefits if, for any week of less than full-time work, the wages payable to the individual for that week, when reduced by the greater of $25 or 25% of the wages payable, do not equal or exceed the individual's unemployment weekly benefit amount. Existing law provides for the payment of unemployment compensation to an individual in a weekly amount equal to his or her weekly benefit amount less the amount of wages in excess of the smaller of $25 or 25% of the wages payable. This bill would instead provide that an individual is unemployed in any week of less than full-time work only if the wages payable to him or her with respect to the week, when reduced by the greater of $200 or 25% of wages payable, do not equal or exceed his or her weekly unemployment compensation benefit amount. This bill would also provide the payment of unemployment compensation to an individual in a weekly amount equal to his or her weekly benefit amount less the amount of wages in excess of the smaller of $200 or 25% of wages payable for that week. (5) Because this measure would increase the amount of unemployment compensation paid, it would make an additional amount payable from the Unemployment Fund, a continuously appropriated special fund, and thereby would make an appropriation. (6) This bill would declare that it is to take effect immediately as an urgency statute.