(a) Contributions by workers payable to the Unemployment Compensation Disability Fund and by employers payable to the Unemployment Fund are exempt without making a claim.
§ 704.120.Contributions Payable to Unemployment Compensation Disability Fund and Unemployment Fund
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Last amended 2000 · Last verified July 28, 2026
In one sentenceSection 704.120 exempts unemployment and disability contributions and benefits both before and after payment without any claim, while letting a support judgment creditor apply certain unemployment-related benefits through the state intercept procedure or a capped earnings assignment order.
Full Text of § 704.120
(b) Before payment, amounts held for payment of the following benefits are exempt without making a claim:
(1) Benefits payable under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.
(2) Incentives payable under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code.
(3) Benefits payable under an employer's plan or system to supplement unemployment compensation benefits of the employees generally or for a class or group of employees.
(4) Unemployment benefits payable by a fraternal organization to its bona fide members.
(5) Benefits payable by a union due to a labor dispute.
(c) After payment, the benefits described in subdivision (b) are exempt.
(d) During the payment of benefits described in paragraph (1) of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, through the appropriate local child support agency, seek to apply the benefit payment to satisfy the judgment as provided by Section 17518 of the Family Code.
(e) During the payment of benefits described in paragraphs (2) to (5), inclusive, of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure. If the benefit is payable periodically, the amount to be withheld pursuant to the assignment order or other procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest whole dollar. Otherwise the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an assignment order under this subdivision an amount reflecting the actual cost of administration caused by the assignment order up to two dollars ($2) for each payment.
Plain-English Summary
Unemployment and related benefits are protected at every stage. Worker contributions to the Unemployment Compensation Disability Fund, and employer contributions to the Unemployment Fund, are exempt without any claim. Before payment, amounts set aside for unemployment insurance benefits, disability incentive payments, employer-supplemental unemployment plans, fraternal-organization unemployment benefits, and union strike benefits are all exempt without a claim, and once paid, those same benefits remain exempt.
Support enforcement gets a defined channel into these benefits. For ordinary unemployment insurance benefits, a support creditor can go through the local child support agency to apply the payment against the judgment using the state's benefit intercept procedure. For the other listed benefit types — supplemental plans, fraternal benefits, union strike benefits — the creditor instead uses an earnings assignment order for support or another enforcement procedure, but the amount withheld from each periodic payment is capped at 25 percent, rounded down to the nearest dollar, unless the creditor or a court specifies something lower; if the benefit isn't paid periodically, the amount instead follows what a court determines under § 703.070(c). The paying entity can deduct up to $2 per payment for its administrative cost.
Frequently Asked Questions
Can a creditor take my unemployment benefits?
Not for an ordinary judgment. Section 704.120 exempts unemployment contributions and benefits before and after payment, without filing a claim.
Can unemployment benefits be used to collect child support?
Yes, through a defined channel. Ordinary unemployment insurance benefits can be intercepted through the local child support agency, while related benefits like supplemental or union strike pay are reached through a support assignment order capped at 25 percent of each payment.
Is there a fee deducted when unemployment benefits are assigned for support?
Yes, the paying entity may deduct up to $2 per payment to cover the actual cost of administering the assignment.
Amendment History
Amended by Stats 2000 ch 808 (AB 1358), s 14, eff. 9/28/2000.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: unemployment benefits exemption californiadisability fund contributions exempt from levy