California Unemployment Insurance Code Section 12111

The director shall identify potentially reimbursable costs, which shall include, but need not be limited to: (a) Costs of additional payroll taxes, and costs of fringe benefits that are part of the employer`s regular compensation package which by law cannot be prorated to a participating employee`s worktime reduction under this program. (b) Additional costs of recruitment and training that cannot reasonably or appropriately be defrayed under another program. (c) Administrative costs of developing and maintaining participation in the program not covered by the technical assistance provided or in other ways. (d) Special costs such as experience rating increases consequent on layoffs resulting from modifying or dropping participation either by the employer or employees, or at the termination of the experimental period. (e) Costs of maintaining full selected fringe benefits of participating employees where, in the judgment of the panel established pursuant to Section 12112, such costs would enhance the research objectives of the program by presenting an opportunity to study the effects of such incentives on participation in a controlled setting, and would not be unduly costly relative to the funds available to the program.