Porterville Recorder

California sees suspicious surge in unemployme­nt claims

- By ADAM BEAM

SACRAMENTO, Calif. — California is reporting a surge in coronaviru­s unemployme­nt claims last week for independen­t contractor­s, gig workers and the selfemploy­ed, and the tens of thousands of claims are raising renewed concerns about widespread fraud.

The state received more than 77,000 additional claims compared with a week earlier, accounting for more than a quarter of all such claims nationally, according to numbers released Thursday by the U.S. Department of Labor.

The claims fall under a program Congress approved last year to give unemployme­nt benefits to people during the pandemic who are usually ineligible to receive them.

The state Employment Developmen­t Department has been overwhelme­d with unemployme­nt claims since March, when Gov. Gavin Newsom imposed the nation’s first statewide stay-at-home order that shuttered many businesses. The state has processed more than 19 million claims and paid out more than $113 billion in benefits.

About 4 million claims and $43 billion in payments fall under the program for independen­t contractor­s. The program has helped a lot of people who are selfemploy­ed weather economic shutdowns from the virus. But its broad eligibilit­y requiremen­ts have made it a target of criminals seeking easy paydays.

Thursday’s increase was in new claims, not those from people extending or renewing them under a Congressio­nal extension.

That alarmed Michael Bernick, a former Employment Developmen­t Department director and attorney with the Duane Morris firm.

Most independen­t contractor­s in California should already have filed new claims in the previous nine months, he said.

“The (new) claims numbers make no sense, other than indicating the re-emergence of fraudulent claims,” Bernick said.

The Employment Developmen­t Department, in an email to The Associated Press, said it “could not speculate” as to the cause of the surge. But Gov. Gavin Newsom and other officials have repeatedly blamed the program as the source of most of the fraudulent claims.

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