Unemployment freeze traps valid claims in a red tape nightmare

Unemployed workers with legitimate claims have had their accounts frozen by the department, sometimes for months, as part of an anti-fraud crackdown.

California unemployment fraud could top $9.8 billion

California may have paid out nearly $10 billion in phony coronavirus unemployment claims — more than double the previous estimate — with some of that money going to organized crime in other countries.

EDD an easy target, fights to crack down on bogus claims

California’s Employment Development Department has been an easy target for fraud, but the agency keeps fighting to crack down on bogus claims.

Taxes on unemployment money coming due soon, surprising many

Many California jobseekers are confused about withholding taxes on their unemployment checks, and many more report that they simply can’t afford to put aside any money when they don’t have enough to begin with.

California suspends 1.4 million virus unemployment claims

The state Employment Development Department on Wednesday said it had examined existing claims from people who said they lost their jobs during the COVID-19 pandemic and found about 3.5 million claims were “potentially fraudulent.”

California may have paid out-of-state inmates job benefits

More than $40 million in California funding intended to help people left jobless by the coronavirus pandemic probably went to inmates in out-of-state jails and prisons, officials said.

California EDD suspending unemployment checks it considers high risk

During the pandemic, the EDD has been hit by massive fraud, including $400 million in jobless benefits, paid to jail and prison inmates.

2020 was a devastating year for working Americans

Well over 1.1 million new unemployment claims just last week, down only slightly from the previous week but well over any other we experienced in the Great Recession. 

Newsom appoints new director to Employment Development Department

The department also has been criticized for granting payouts on hundreds of thousands of fraudulent claims, including some in the name of U.S. Sen. Dianne Feinstein. The state has acknowledged that it has paid about $400 million in the names of prison inmates.

California EDD whistleblower blames management for unemployment fraud

An employee with the California Employment Development Department said thousands of fraudulent unemployment claims are being processed because of lax management, little oversight and an inability to properly flag suspicious claims.

Ex-California EDD worker filed fraudulent claims under Dianne Feinstein's name: feds

“Think about this for a minute: EDD issues a debit card to Senator Dianne Feinstein! How does that happen?” Jim Patterson, a Republican in the state Assembly, said Thursday. “I’ll tell you how, EDD is complicit in the fraud by mailing out Social Security numbers to scammers; or they are utterly incompetent by not even checking eligibility before they issue the debit card. Either way, EDD has aided and abetted the fraud.”

Pandemic pushes the formerly employed into poverty, with scant support

1.6 million Californians will lose their unemployment benefits the day after Christmas. With rent due and a stimulus still up in the air, many Californians are falling into poverty with a weak job market and insufficient aid. 

Lawmakers say California jobless claims still a 'black hole'

Republican Assemblyman Jim Patterson, the committee’s vice chairman and a frequent critic of Gov. Gavin Newsom’s Democratic administration, cited complaints from two whistleblower employees of the Employment Development Department as well as customers who contacted his office in saying the new ID.me verification system “is failing substantially.”

Unemployed Americans losing benefits on Dec. 26 face bleak holiday season

Unemployed people interviewed by KTVU expressed disappointment with the lack of enduring economic support during a pandemic, and lamented the loss of a comfortable and joyous holiday season. 

California paid $400 million in jobless benefits to inmates

California sent about $400 million in fraudulent unemployment benefit payments to state prisoners, a state official said Tuesday, nearly triple the amount disclosed last week and a number that could grow as a criminal investigation continues.

Absent new stimulus, wealthy pay off credit cards, while others dive deeper into debt

Credit cards reveal yet another example of the “K-shaped recovery” wherein high earners are recuperating, or even increasing their wealth during the economic downturn, and lower income earners are flailing.

Death Row inmates part of California's 'massive' unemployment fraud; totals could top $1B

Authorities said between March and August, 35,000 inmates filed unemployment claims through the state's Employment Development Department. Of that 20,000 claims were paid out totaling more than $140 million. 

EDD needs months and years to better protect Social Security numbers

California's EDD said it will take months and in some cases years to change the way it shares people's Social Security numbers.