Article 1. Policy And Interpretation of California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 1. >> Article 1.
As a guide to the interpretation and application of this
division the public policy of this State is declared as follows:
Experience has shown that large numbers of the population of
California do not enjoy permanent employment by reason of which their
purchasing power is unstable. This is detrimental to the interests
of the people of California as a whole.
The benefit to all persons resulting from public and private
enterprise is realized in the final consumption of goods and
services. It is contrary to public policy to permit the supply of
consumption goods and services at prices which do not provide against
that harm to the population consequent upon periods of unemployment
of those who contribute to the production and distribution of such
goods and services.
Experience has shown that private charity and local relief cannot
alone prevent the effects of unemployment. Experience has shown that
if the State awaits the coming of excessive unemployment it can
neither create immediately the organization necessary to orderly,
economical and effective relief nor bear the financial burden of
relief without disrupting its whole system of ordinary revenues and
without jeopardizing its credit.
The Legislature therefore declares that in its considered judgment
the public good and the general welfare of the citizens of the State
require the enactment of this measure under the police power of the
State, for the compulsory setting aside of funds to be used for a
system of unemployment insurance providing benefits for persons
unemployed through no fault of their own, and to reduce involuntary
unemployment and the suffering caused thereby to a minimum.
It is the intent of the Legislature that unemployed persons
claiming unemployment insurance benefits shall be required to make
all reasonable effort to secure employment on their own behalf.
This part is a part of a national plan of unemployment
reserves and social security, and is enacted for the purpose of
assisting in the stabilization of employment conditions. The
imposition of the tax herein imposed upon California industry alone,
without a corresponding tax being imposed upon all industry in the
United States, would, by the corresponding penalty upon California
industry, defeat the very purposes of this law as set forth in this
article. Therefore when existing federal legislation which provides
for a tax upon the payment of wages by employers in this State,
against which all or any part of the employer contributions required
under this part may be credited is repealed, amended, interpreted,
affected or otherwise changed in such manner that no portion of such
contributions may be thus credited, then upon the date of such
change, the provisions of this part requiring employer contributions
and providing for payment of unemployment compensation benefits shall
cease to be operative and any assets in the Unemployment Fund or
Unemployment Administration Fund shall in the discretion of the State
Treasurer be held in the then existing depositaries or otherwise in
the State Treasury. In the case of the Unemployment Administration
Fund, such money may thereafter be dealt with by the State Treasurer
pursuant to the conditions of the grant thereof to the State by the
United States Government or agency thereof.
All the rights, privileges or immunities conferred by this
division or by acts deemed pursuant thereto shall exist subject to
the power of the Legislature to amend or repeal this division at any