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HomeUnemployment Insurance CodeDiv. 3Pt. 1Ch. 3.5§ 10201 Employer Definitions For Unemployment

§ 10201 Employer Definitions For Unemployment

Unemployment Insurance Code·California
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§ 10201 Employer Definitions For Unemployment

This law spells out who counts as an employer or trainee, what counts as a job, and how much a trainee must be paid compared to the average wage in the state.

Key Takeaways

  • •An “employer” is any private business that pays unemployment insurance, not a public agency or certain nonprofits.
  • •An “eligible participant” is someone who is unemployed or has worked at least 90 days before training.
  • •A “job” must pay at least 50% (new hire) or 60% (retraining) of the state’s average hourly wage, but never less than 45% or 55% respectively.
  • •Soft skills like communication and problem‑solving are part of the training.
  • •The Employment Training Panel oversees the program and can waive some rules for special cases.

Example

Maria lost her job, applies for a training program, and gets a part‑time job after the training.

Because Maria was unemployed and filed a claim, she is an “eligible participant.” The job she gets must pay at least half of the state’s average hourly wage (or the higher minimum percentages) so she earns a decent wage after training.

How to Calculate

State average hourly wage = (Average weekly wage reported to the EDD) ÷ 40 hours

  1. Find the average weekly wage that the state reports for the last year.
  2. Divide that weekly amount by 40 (the number of hours in a typical work week).
  3. Multiply the hourly wage by 0.5 for new‑hire training or 0.6 for retraining to get the minimum hourly pay the trainee must receive.
  4. Check that the result is not lower than the floor of 45% (new‑hire) or 55% (retraining) of the state average hourly wage.

A training program looks at the state’s average weekly wage of $800.

Result: The trainee must be paid at least $10 per hour (which is above the $9 floor), so a $12‑per‑hour job would satisfy the law.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10201 Employer Definitions For Unemployment

As used in this chapter: (a) “Department” means the Employment Development Department. (b) “Employer” or “eligible employer” means any employer subject to Part 1 (commencing with Section 100) of Division 1, except any public entity, or any nonprofit organization which has elected an alternate method of financing its liability for unemployment insurance compensation benefits pursuant to Article 5 (commencing with Section 801), or Article 6 (commencing with Section 821) of Chapter 3. Any public entity or nonprofit organization that has elected an alternate method of financing its liability for unemployment insurance compensation benefits pursuant to Article 5 (commencing with Section 801), or Article 6 (commencing with Section 821) of Chapter 3, shall be deemed to be an employer only for purposes of placement of new hire trainees who received training as an incidental part of a training project designed to meet the needs of one or more private sector employers. (c) “Eligible participant” means any person who, prior to beginning training or employment pursuant to this chapter, is any of the following: (1) Unemployed and has established an unemployment insurance claim in this state, or has exhausted eligibility for unemployment insurance benefits from this state within the previous 24 months. (2) Employed for a minimum of 90 days by his or her employer, or if employed for less than 90 days, met the conditions of paragraph (1) at the time of hire, had received a notice of layoff from the prior employer, or was employed by an employer for a period of not less than 90 days during the 180-day period prior to the employee’s current employment at the start of training with an eligible employer, as provided in subdivision (b). The panel may waive this requirement for trainees employed by a business locating or expanding operations in the state, provided it is part of a state and local economic development effort endeavoring to create or retain California jobs. The panel may also waive the requirement for up to 10 percent of the trainee population, if it determines a business meets standard funding requirements set out under subdivision (a) of Section 10200. (d) “Executive director” means the executive director appointed pursuant to Section 10202. (e) “Fund” means the Employment Training Fund created by Section 1610. (f) “Job” means employment on a basis customarily considered full time for the occupation and industry. The employment shall have definite career potential and a substantial likelihood of providing long-term job security, with reportable California earnings during the employment retention period. Furthermore, the employment shall provide earnings, upon completion of the employment requirement specified in subdivision (f) of Section 10209, equal to 50 percent, in the case of new hire training, or 60 percent, in the case of retraining, of the state or regional average hourly wage. However, in no case shall the employment result in earnings of less than 45 percent of the state average hourly wage for new hire training and 55 percent of the state average hourly wage for retraining. The panel may consider the dollar value of health benefits that are voluntarily paid for by an employer when computing earnings to meet the minimum wage requirements. (g) “New hire training” means employment training, including job-related literacy training, including soft skills, for persons who, at the start of training, are unemployed. (h) “Panel” means the Employment Training Panel created by Section 10202. (i) “Retraining” means employment-related skills and literacy training, including soft skills, for persons who are employed and who meet the definition of paragraph (2) of subdivision (c) prior to commencement of training and will continue to be employed by the same employer for at least 90 days following completion of training. (j) “Soft skills” means behaviors and competencies to allow people to navigate professional environments, work well with colleagues, and perform up to standards for professional success, including, but not limited to, all of the following: (1) Social skills, including, but not limited to, respectful personal interactions, context appropriate behavior, and conflict resolution. (2) Competency in oral, written, nonverbal, and listening skills. (3) Problem solving, critical thinking, and decisionmaking skills, including, but not limited to, identifying issues and evaluating options in order to reach a reasonable conclusion. (4) Self-regulation of behavior and the exercise of delayed gratification or directing focus or attention, or both. (k) “State average hourly wage” means the average weekly wage paid by employers to employees covered by unemployment insurance, as reported to the Employment Development Department for the four calendar quarters ending June 30 of the preceding calendar year, divided by 40 hours. (l) “Trainee” means an eligible participant. (m) “Training agency” means any private training entity or local educational agency. (Amended by Stats. 2018, Ch. 216, Sec. 2. (AB 2420) Effective January 1, 2019.)

Last verified: January 11, 2026

Key Terms

Department

Related Statutes

  • § 10200 Workforce Training Investment Program
  • § 10201.5 Emergency Region Training Wage Waiver
  • § 10202 Employment Training Panel Authority
  • § 10202.5 Business Employment Advisory Panel
  • § 10203 Small Business Training Offices

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Unemployment Insurance Code. Section 10201.
View Official Source