Cal. Code Regs. Tit. 22, §§ 1279.5-7

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Section 1279.5-7 - Calculation of Wage Reduction

(a) To calculate the percentage by which an employee's normal weekly wages were reduced during a week as a result of a work sharing plan, the work sharing employer shall:

(1) Subtract the actual (reduced) wages earned during the work sharing week (wages are described below in subsection (b) of these regulations) from the normal weekly wages (wages the employee earned before the implementation of the work sharing plan), and

(2) Divide the difference (obtained in above subsection (a)(1) of these regulations) by the normal weekly wages.

Example: The claimant's normal weekly wages are $420.00. However, due to work sharing reductions, the claimant's actual wages earned during the work sharing week are $336.00. The claimant's wages have been reduced by $84.00 ($420.00 - $336.00 = $84.00). To determine the percentage of wage reduction, divide the amount the wages have been reduced by the normal weekly wages, this figure is the percentage by which the normal weekly wages were reduced ($84.00 / $420.00 = .20, or a 20% reduction in the normal weekly wages.

(b) Wages earned during the work sharing week shall include:

(1) Wages for services performed by the employee during the week to which the certification applies for the work sharing employer.

(2) Vacation pay, holiday pay, sick leave pay, and other types of paid leave for time off from work. These wages are allocable to the week of the vacation, holiday, sick leave, or other paid leave.

Example: The employees of work sharing employer A recently worked three days, received holiday pay for the fourth day, and were on an unpaid day off due to work sharing on the fifth day. For work sharing purposes, the employees are considered to have a corresponding reduction in wages and hours for the week of the holiday of 20% (the fifth day only) and are entitled to 20% of the weekly unemployment insurance benefit amount.

Cal. Code Regs. Tit. 22, §§ 1279.5-7

1. New section filed 3-11-94 as an emergency; operative 3-11-94 (Register 94, No. 10). A Certificate of Compliance must be transmitted to OAL by 7-11-94 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 3-11-94 order transmitted to OAL 7-11-94 and filed 8-18-94 (Register 94, No. 33).
3. Amendment of subsections (a)(1) and (a)(2) filed 1-8-98; operative 2-7-98 (Register 98, No. 2).
4. Editorial correction of subsection (a)(2) (Register 2002, No. 45).

Note: Authority cited: Sections 305 and 306, Unemployment Insurance Code. Reference: Section 1279.5, Unemployment Insurance Code.