Q: Can we hire an employee (California), agreeing that the job lasts for 18 months (we have grant funding for that period)
And will they be eligible for unemployment benefits at the end of that time? We are a non-profit currently on the reimbursable method with EDD and pay all unemployment claims dollar for dollar, so we are trying to avoid that liability.
A:
In California, the relationship between employer and employee is considered to be at will unless there is an agreement to the contrary. That means either employer or employee can terminate the relationship at any time and for any reason, or even for no reason at all. That means you can hire an employee and terminate them 18 months later, or 18 minutes later. You do not have to tell the employee that the employment would end at the end of 18 months but it would not be a good idea to suggest that the job is for that period of time as that might destroy the at will nature of the relationship.
As to your liability to the EDD, you are going to have to determine the precise terms of your reimbursable method. This employee would be entitled to benefits if contributions are being made to the fund and if the employee is not terminated for an act of misconduct, or has not voluntarily resigned.
Good luck to you.
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