Fillable Printable Specialized Coverage (Elective Coverage For Exempt Workers) (De 231Sc)
Fillable Printable Specialized Coverage (Elective Coverage For Exempt Workers) (De 231Sc)
Specialized Coverage (Elective Coverage For Exempt Workers) (De 231Sc)
SPECIALIZED COVERAGE (ELECTIVE COVERAGE FOR EXEMPT WORKERS)
Under provisions in the California Unemployment
Insurance Code (CUIC), employers may elect
Unemployment Insurance (UI) and/or State Disability
Insurance* (SDI) coverage for their exempt employees.
The Employment Development Department (EDD) refers
to these elections as Specialized Coverage.
Specialized Coverage requirements:
• Requests must be in writing, fi led with and approved
by the EDD.
• The election must remain in effect for at least two
complete calendar years unless the election is for a
minor child. Elective coverage for a child terminates
on the child’s 18
th
birthday, at which time the child is
mandatorily subject to both UI and SDI.
• Termination requests must be in writing, fi led with the
EDD during January, and will be effective January 1
of the year fi led (if more than two complete calendar
years have passed since the effective date of the
election). Requests postmarked after January 31 will be
denied unless “good cause” for the late fi ling is evident.
Elections for coverage will be denied if any of the
following conditions exist:
• The intent is to discontinue the business within eight
calendar quarters (two years).
• The regular trade, business, or occupation of the
employing unit is seasonal in its operations (this does
not apply to public entities).
• The employing unit has failed to fi le a return or to
pay contributions within the time required by the
CUIC and there are unpaid contributions owed.
• The entity or offi cer or agent or person having charge
of the affairs of the employing unit has been convicted
within the last eight consecutive calendar quarters
(two years) of violations specifi ed in Chapter 10
(commencing with Section 2101) of the CUIC.
SPECIALIZED COVERAGE CODE SECTIONS AND WHO MAY ELECT
*Includes Paid Family Leave (PFL).
DE 231SC Rev. 9 (12-13) (INTERNET) Page 1 of 2 CU
CUIC
Section Type of Entity
Type of
Coverage
Offered
Required and
Informational
Forms
701 Employing units that do not qualify as “employers” under the CUIC (wages paid
in any calendar quarter have not exceeded $100).
UI and SDI DE 1378
702 Employing units who employ exempt workers, such as statutorily exempt workers,
may request coverage for all services in one or more distinct places of business.
UI and SDI DE 1378
702.1 Nonprofi t employers who employ exempt workers. The election requires a
written petition signed by a majority of the exempt workers.
UI and SDI DE 1SNP
DE 1378
702.5 Sole proprietors, or partners in partnership, may request coverage for exempt
family members (spouse, registered domestic partner, parents, natural or adopted
children under 18) who perform services in one or more distinct places of
business. For partnerships, the relationship that created the family exemption
must apply to all partners.
SDI only DE 1378J
DE 1378K
702.6 California employers may elect coverage for California residents whose services are
covered under the unemployment compensation laws of another state that does
not have a SDI program. (For employees who are part of a labor organization, the
election must be the result of a negotiated agreement. For employees not part of a
labor organization, the election must be a result of a written petition signed by the
majority of the employees.)
SDI only DE 1378N
DE 1378P
703 Employers may elect coverage for California residents working outside California
whose services are not in employment and who are not mandatorily covered by
the laws of any other state or the federal government.
UI and SDI DE 1378
*As described by Section 3306(u) of the Internal Revenue Code.
ADDITIONAL INFORMATION
For further assistance, please contact the Taxpayer Assistance Center at 888-745-3886 or visit the nearest Employment Tax
Office listed in the California Employer’s Guide (DE 44) or on the EDD website at
www.edd.ca.gov/Office_Locator/.
The EDD is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals
with disabilities. Requests for services, aids, and/or alternate formats need to be made by calling 888-745-3886 (voice) or TTY
800-547-9565.
This information sheet is provided as a public service and is intended to provide nontechnical assistance. Every attempt
has been made to provide information that is consistent with the appropriate statutes, rules, and administrative and court
decisions. Any information that is inconsistent with the law, regulations, and administrative and court decisions is not
binding on either the Employment Development Department or the taxpayer. Any information provided is not intended
to be legal, accounting, tax, investment, or other professional advice.
CUIC
Section
Public Entities, School Districts, and Indian Tribes*
(Covered by law for UI but not for SDI)
Type of
Coverage
Offered
Required and
Informational
Forms
709 Local public entities and Indian tribes may elect coverage for all employees
(including those who have elected UI coverage). This requires an election by the
appropriate governing board on its own motion or pursuant to a written petition
signed by a majority of the employees.
SDI only
(UI coverage
mandatory)
DE 1378L
DE 1378M
710 Public entities and Indian tribes may elect coverage for employees excluded from
mandatory UI coverage. For public entities, the UI fi nancing method in effect
for covered employees will be extended to employees included in the election.
Indian tribes* may make separate elections for itself and for each subdivision,
subsidiary, or business enterprise wholly owned by that tribe.
UI only DE 1PE
DE 1378
710.4 Public school employers may elect coverage for:
• Employees who are part of an appropriate bargaining unit. The election must
be the result of a negotiated agreement.
• Management and confi dential employees.
• Unrepresented employees (who are not part of an appropriate bargaining unit).
SDI only
(UI coverage
mandatory)
DE 1378N
DE 1378P
710.5 Public agency employers may elect coverage for:
• Employees who are part of an appropriate bargaining unit. The election must
be the result of a negotiated agreement
• Management and confi dential employees.
• Unrepresented employees (who are not part of an appropriate bargaining unit).
SDI only
(UI coverage
mandatory)
DE 1378N
DE 1378P
710.6 Indian tribes* may elect coverage for:
• All employees employed in one or more distinct establishments or places of
business.
• Employees who are part of an appropriate bargaining unit. The election must
be the result of a negotiated agreement.
• Management and confi dential employees.
• Unrepresented employees (who are not part of an appropriate bargaining unit).
SDI only
(UI coverage
mandatory)
DE 1378N
DE 1378P
710.9 Community college districts may elect coverage for:
• Employees who are part of an appropriate bargaining unit. The election must
be the result of a negotiated agreement.
• Management and confi dential employees.
• Unrepresented employees (who are not part of an appropriate bargaining unit).
• Academic employees.
SDI only
(UI coverage
mandatory)
DE 1378N
DE 1378P
DE 231SC Rev. 9 (12-13) (INTERNET) Page 2 of 2
