California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 1 - Unemployment and Disability Compensation › Part 1 - Unemployment Compensation › Chapter 4 - CONTRIBUTIONS AND REPORTS › Article 2 - "WAGES" THE BASIS OF THE CONTRIBUTION › Section 926-2 - Wages -Exclusions From -General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
"Wages" does not include any of the following:
(a) Payments made by an employer under any of
						  the following circumstances:
(1) Ordinarily,
						  facilities or privileges (such as entertainment, cafeteria facilities, medical
						  services, or so called "courtesy" discounts on purchases), furnished or offered
						  by an employer to his employees generally, if such facilities or privileges are
						  furnished or offered for the purpose of promoting the health, goodwill,
						  contentment, or efficiency of the employees, are not made under a regular or
						  systematic plan to compensate the employees for services rendered, and may be
						  withdrawn by the employer at any time with no obligation for a corresponding
						  increase in remuneration or the substitution of a like facility or privilege.
						  (See Sections
						  926-3,
						  926-4, and
						  926-5, of these regulations for
						  the inclusion of meals and quarters furnished employees as "wages.")
(2) Gifts in cash or kind of nominal value
						  voluntarily given by an employer to an employee on special occasions, such as
						  Christmas or the marriage or the birthday of the employee, as an expression of
						  goodwill and not based on the rate of pay, the length or degree of prior
						  personal services rendered by the employee, nor paid by the employer as
						  required by a labor union agreement or a contract of hire.
(3) Penalties or damage awards paid by an
						  employer to an employee because of discriminatory practices or for violation of
						  labor-management agreements or of the California Labor Code.
(4) Payments gratuitously made by an employer
						  to a former employee in military service if the employment relationship has
						  terminated.Payments are not gratuitous if they are made by the employer as
						  required in a labor union agreement or a contract of hire. The exclusion under
						  this paragraph does not apply to payments made:
(A) To an officer of a corporation or
						  association who retains his status as an officer of the corporation or
						  association during his military service.
(B) To an employee on temporary leave of
						  absence while training with the United States Armed Forces or any state or
						  National Guard, if it is agreed that the employee will return to employment
						  with the employer upon completion of the training.
(5) Payments made by an employer to an
						  individual not in its employ for leads submitted to the employer on potential
						  customers or clients, commonly referred to as "bird-dog" payments.
(6) Compensation paid by an employer to the
						  widow or estate of a deceased employee for which no services are
						  performed.
(7) Remuneration paid or
						  payable by an employer to a worker for services which are excluded from
						  "employment" by the code (see Sections
						  606-1 to
						  653-1, inclusive of these
						  regulations).
(8) Any payment made
						  by an employer which excluded from "wages" by the code (see Sections
						  926-6,
						  929-1,
						  929-2,
						  931-1,
						  932-1,
						  933-1,
						  936-1, and
						  937-1 of these
						  regulations).