California EDD Puts Pause On New Unemployment Claims For Next Two Weeks
By Lonce Lamonte - September 20, 2020
California will not accept new unemployment insurance claims for the next two weeks while it works to combat cases of fraud. This action comes after governor Gavin Newson’s team released a report Saturday, September 18th, with recommendations to reduce fraud and tackle backlog impacting the Employment Development Department.
The reported backlog is an estimated 1.6 million claims. The report lays out a plan for reforms.
“EDD is broken. It needs top-down reform. Many of us have been asking EDD for many months to implement basic reforms that it hasn’t done,” Assemblyman David Chiu told a news outlet.
EDD is said to be implementing a new program called ID.me to fight fraud. A verification tool requires users to upload identifying documents and a photo of themselves in hopes of stopping fraudsters. EDD has said it will allow them to verify identities faster leading to timelier payments.
To cut down on the backlog, the most experienced staff members will now be moved from the phone lines to instead work through the oldest and most complicated claims.
“According to the report, they’re not going to be able to close the backlog until the end of January (2021). And so, I am very concerned that this is going to be too little too late for so many Californians who have been desperately waiting,” Chiu said.
Assemblyman Kevin Kiley called the two week shut-down on claims submissions “unacceptable.” He commented that the point of unemployment insurance is it’s supposed to be there when unfortunate circumstances hit and one is unable to work.
In the meantime, individuals waiting to submit a claim will be redirected to a temporary webpage. EDD said if one inputs one’s personal information, it will invite the user to the new unemployment insurance system when it is ready. Furthermore, new claimants should not see a delay in benefit payments because the new system avoids the old, time-consuming ID verification process.
“My hope it that we are really truly at a low-point for EDD and that this strike force report represents the turning point for this agency. We’ll see,” Chiu said.
The department also made the statement that the pause on new claims does not impact anyone with current unemployment claims.
lonce@adjustercom.com; journalist Lonce Lamonte
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