Related Articles
More than 100,000 California workers face possible cuts to their unemployment weekly payments, potentially within a few days, according to a letter sent to state lawmakers.
The revelations arrive at the same time state lawmakers have been waiting for the Employment Development Department to explain why it failed to notify them about computer issues that could stymie $300 federal payments to jobless workers.
The agency has been embroiled in a number of issues including missing benefits payments, a balky application system and widespread fraud.
A state audit revealed the EDD and Bank of America froze 350,000 accounts because of suspected fraud — without any clear plan for how to unfreeze the accounts of workers who have filed legitimate claims. BofA handles the money transfers using bank accounts or debit cards issued to the unemployed.
Separately, state Sen. Dave Cortese (D-San Jose) requested the EDD and Bank of America undergo regular and ongoing auditing to remedy the frozen accounts and other fiscal woes involving the payment blunders. Cortese is the chair of the state Senate’s Labor, Public Employment and Retirement Committee.
“Benefits being unfairly delayed or denied is unacceptable,” Cortese said at a recent hearing regarding the EDD. “The people of California are clearly asking more from us than this.”
Many workers have been without a job for months. Layoffs hit California in record numbers after state and local government agencies ordered wide-ranging business shutdowns last spring and again in winter to help combat the spread of the coronavirus.
Unemployed workers now must deal with a fresh set of concerns.
In a letter from the EDD, lawmakers were told that a new federal law will usher in changes in the level of benefit payments for an estimated 217,000 workers in California. The new law requires the EDD to switch workers from a Pandemic Unemployment Assistance claim to a state benefits program known as Pandemic Emergency Unemployment Compensation.
Workers should be aware of possible impacts on their weekly benefit amount, the EDD told the state lawmakers.
“The EDD estimates about half of this group of 217,000 claimants will return to a lesser amount, while about 46% will see a higher benefit amount,” the EDD stated. “The rest will notice no change.”
This means potentially 108,500 workers will experience a decline in weekly payments. About 99,800 could see an increase in payments, according to EDD estimates.
“EDD is alerting claimants to the situation,” the letter stated.
Because of the state’s antiquated computer system, thousands of California workers who have been without payments since December and who are waiting for $300 weekly federal supplement, now will wait until March to begin receiving the enhanced benefits.
The EDD didn’t bring up the latest computer deficiencies during a state hearing held just two days before the EDD notified the Legislature about the payment delays.
A week later, state lawmakers say they still haven’t received an explanation from the EDD about the computer woes and the delays.
Because workers can’t certify for their unemployment claims until March 7, their first payments might not occur until April or May.
The EDD has failed to be transparent about the computer problems and numerous other gaffes, state lawmakers say, including Assemblymember Jim Patterson (R-Fresno), who has been a harsh critic of the EDD.
“This department has had every opportunity to come clean to the Legislature about just how messed up they are,” Assemblymember Patterson said. “Instead we get half-truths and ‘we’ll get back to you’ when people’s livelihoods are on the line.”
The EDD letter, sent via email, to state lawmakers ended with what appeared to be a motto, apparently espoused by the state agency, whose responsibilities include paying benefits to jobless workers: “Our Business is Your Success.”
Source link
