EDD Assessments and Appeals

California’s Employment Development Department is responsible for enforcement of the unemployment, disability and other employment related laws, including auditing and issuing assessments against employers in cases of misclassification of employees as independent contractors.

These audits may be triggered by a former worker seeking unemployment, accompanied by the EDD’s discovery that no unemployment insurance withholding was made, or an employer’s response to a claim for unemployment with the assertion that the individual was an independent contractor. The procedures that apply to these proceedings are regulated by statute, from the first notice from the EDD, through its examination of the employer's books and records, the issuance of assessments and the employer’s appeal and final hearing. California law requires that each step in the process must be followed by the employer to protect its rights on appeal. And, the law governing whether a worker is properly classified as an independent contractor, as opposed to an employee, is legally and factually complex. To make matters worse, the agencies involved in this issue, including the IRS or the EDD, apply different versions of the test. We have experience and can provide assistance if you, as an employer, are subjected to an assessment process.