Employment Development Department v. California Unemployment Insurance Appeals Board

*182Opinion

RAYE, J.

In State Unemployment Tax Act (SUTA) “dumping,” one employer transfers employees or payroll wages to another employer in order to take advantage of the other employer’s lower unemployment insurance tax rate. In essence, the first employer “dumps” payroll with a higher contribution rate into the second employer’s unemployment insurance account with a lower rate. The Legislature directed plaintiff Employment Development Department (Department) to stop such rate manipulation and provided a procedure for doing so.

Real parties in interest Screaming Eagle, Inc., and Payday…