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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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Dear Attorney, I have an ice cream shop in California with

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Dear Attorney,
I have an ice cream shop in California with 10 part time employees. One of the new employee (A) went on a one month international vacation for visiting her family. She was a low performer in team.
Since we needed additional help in holidays, so I hired 2 new part time employees. Now, I don't need employee A after she comes back from vacation; since I have 2 new employees and less work in Jan.
1. If I terminate her, it may effect my UI premium. To avoid that issue, if I reduce her weekly hours to 3 hours per week, coudl she still apply for Unemployment Insurance which may effect my premiums? before going on vacation, she was getting 10-12 hours per week for the 3 weeks period she worked.
2. What shall me my best plan in this situiotion? considering labor laws and UI premium. Basically, I don't need her services due to less work and new and better employees.

1. Even if you reduce her hours she could still apply for unemployment benefits, since you are basically terminating her and requesting to rehire her for only 3 hours per week. Since that is an extremely small number of hours to work per week, she could apply for unemployment benefits still. However, to be eligible she would need to have had sufficient earnings over the last year to 15 months, so she would have had to be employed in another job prior to that.

2. Due to the fact that she's unlikely to be eligible for unemployment benefits, you could terminate her. However, the termination would be without cause, so you could potentially be liable for a small amount in unemployment benefits.
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