As a result of a class action lawsuit, the EDD must now stop its policy of freezing benefits for people whose existing claims have eligibility questions and instead continue sending checks while they investigate the problem.
Federal officials said the two inmates worked from their respective correctional facilities at Kern Valley State Prison and California Correctional Institute in coordination with someone on the outside to submit false unemployment claims.
Former federal prosecutor, McGregor W. Scott, was appointed as "fraud special counsel" to help investigate unemployment fraud in California.
California will stop giving unemployment benefits to people who are not actively applying for jobs, Gov. Gavin Newsom's administration announced Thursday.
Prosecutors allege that the men, who had met in prison, bilked mainly homeless people or transients who were living off Social Security or disability payments by pretending to counsel them.
Initially, EDD promised to process all extensions for all of those with a zero balance in their PEUC accounts by April 30th. But then the department shortened the wait.
EDD claimants are learning that when a year's worth of claims have been collected, they're terminated unless they jump through a bureaucratic hoop. EDD says it was just a glitch.
The measure that cleared its first committee would require the beleaguered Employment Development Department to crosscheck unemployment applications with inmate records to identify fraudulent claims.
If one looks at the data for American wages in 2020, which shows that they grew historically fast, this fact may seem to be cause for celebration. But a closer look at the data paints yet another picture of stark inequality and of the "K-shaped recovery."
Intermittent outages over several days caused many unemployed Californians to be unable to access their online accounts or certify their claims.
Record unemployment in California during the coronavirus pandemic exposed flaws, failures, and exacerbated fraud of the state's Employment Development Department.
Two U.S. Postal Service employees were arrested Wednesday on charges that they abused their positions to obtain unemployment benefits through false claims of pandemic-related job losses.
California's Employment Development Department appears to have recovered from a technical glitch on Tuesday that rendered parts of its website inoperable.
Officials say the state has paid at least $11 billion in benefits to people whose identities it has been unable to verify, which they say is likely fraud. Of that, $810 million was tied to ineligible prisoners.
It appears that a growing number of beleaguered and disillusioned Employment Development Department workers are hanging up their headphones and walking away in droves.
On Thursday, the department sent a letter that said nearly 110,000 jobless Californians could see their benefits reduced in the coming days.
Unemployment agencies across the country became lucrative targets for criminals when they were bombarded with claims last year as millions lost jobs due to coronavirus shutdowns.
A flurry of EDD reform bills have been submitted to the California legislature to fix, once and for all, EDD's inability properly serve millions of unemployed Californians.
The reforms to fix the California Employment Development Department are headed to the legislature for approval. Tom Vacar reports.
California's Employment Development Department was called on the legislative carpet as more claims come in and the once shrinking backlog of old claims grows again.