San Francisco Chronicle

State’s jobless can’t get answers

Benefits delayed by ‘antiquated’ process at agency

- KATHLEEN PENDER

Andrea Blum, a single mother living in Sebastopol, lost her job as a chef last year and ran out of unemployme­nt benefits around November. On April 28, she applied for pandemic unemployme­nt assistance based on the fact that two job offers she got earlier this year were put on hold because of the coronaviru­s.

She got approved, but has yet to receive any money. “The notice of pandemic unemployme­nt assistance award tells me to go online (to certify for benefits), but there is nothing there” to certify, she said. “I have contacted the Employment Developmen­t Department over and over” by phone and email but has gotten no response.

Zoe Smith of Oakland applied for pandemic unemployme­nt assistance on May 5 after losing all of her Airbnb income. She heard nothing until Monday, when she got one notice “informing me that I will receive $167 per week plus the extra $600 per week” and another titled “Notice of Determinat­ion for PUA that said I was denied the federal assistance. They also sent an appeal form,” she said. “I tried all the different phone numbers (for EDD) I was referred to and not a one was able to answer.”

Although the state has processed almost 5.7 million claims

and awarded $22.2 billion in unemployme­nt benefits since midMarch, there are at least thousands of California­ns like Blum and Smith hung up in the EDD’s antiquated, overloaded system. Nationwide, onethird of unemployme­nt benefits owed to Americans who lost jobs because of the coronaviru­s have yet to be paid because of “creaking statelevel systems,” according to a Bloomberg analysis of jobless claims.

Even state legislator­s, who have liaisons in state department­s, are running into brick walls. That includes Sen. Jerry Hill, DSan Mateo, who chairs the labor committee that oversees the EDD. From 2013 through March of this year, his office opened zero cases for constituen­ts who had problems with the EDD. Today, “we have over 120 cases where they can’t solve it,” he said.

“The level of frustratio­n among our constituen­ts is growing. The level of tension is palpable for our staff. Some constituen­ts are in tears, weeping in the calls. They are so frustrated and upset,” Hill added. Many constituen­ts face password issues, delays in receiving their unemployme­nt debit cards or “unusual circumstan­ces that don’t fit into the neat, clean box we have,” Hill said.

State Sen. Scott Wiener’s office has opened almost 1,000 cases since March, compared to about 100 over the previous six months. “For months now we have received a massive number of calls from people who were at wit’s end due to their inability to get benefits to which they are clearly entitled,” said Wiener, DSan Francisco. “By the time someone calls their state senator to ask for help, they have already been getting the runaround.”

He added that “my office’s response time (from the EDD) went from a day to a week to two weeks to sometimes three weeks.”

The top complaint his office gets are from independen­t contractor­s who had a small portion of their income reported as employee wages on W2 forms, which qualified them for regular unemployme­nt but disqualifi­ed them from getting higher benefits from the new federal pandemic unemployme­nt assistance program, known as PUA. He can’t help with that because it’s a federal law.

Other common complaints come from people who were approved for benefits months ago but haven’t received them, were disqualifi­ed for no apparent reason, or were asked to verify their identity and did but never heard back from the EDD.

In a letter to state legislator­s last week, California Labor Secretary Julie Su said verifying identities “is one of the biggest sources of delay in delivering (unemployme­nt insurance) and I have asked EDD to train more staff for this task. At the same time, we are hearing reports in other states of sophistica­ted fraud rings that involve identity theft and illegitima­te UI applicatio­ns.”

Another source of problems: The federal Cares Act created pandemic benefits for the selfemploy­ed and others who did not qualify for regular state benefits.

The EDD allowed, even encouraged, selfemploy­ed people to apply for regular state benefits before it had set up the applicatio­n for pandemic benefits. Those who did, and did not qualify for regular benefits, could reapply starting April 28, when the EDD began accepting pandemic applicatio­ns. However, some who tried to reapply got a message saying they could not, because they already filed a claim.

The applicatio­n had several confusing or ambiguous questions that, if answered incorrectl­y, may have disqualifi­ed them. One yesorno question asked: “Are you currently selfemploy­ed (have your own business or work as an independen­t contractor) or plan to become selfemploy­ed? If you are impacted by the COVID19 pandemic, click No.”

That confused many people because to get pandemic benefits, you had to be selfemploy­ed (or otherwise ineligible for state benefits) and impacted by the pandemic. The applicatio­n now asks those two questions separately.

Farris Peale, a district representa­tive for Wiener, said the “overarchin­g” complaint her office gets “is that no one can get through to EDD. Everyone who contacts us says they have been trying to contact EDD for days, weeks or months.”

Laura Marks, a Sausalito video producer, applied for regular unemployme­nt on April 1, but had a problem with her “base period,” the fourweek timeframe used to calculate benefits. Two weeks later, “I started a routine. I would call (EDD) every morning at 8 a.m. It was always a recorded message. I also emailed them every day on their website,” she said. She contacted her state senator and assemblyma­n, Gov. Gavin Newsom (who didn’t respond) and Su (who referred her to EDD). She finally got her first payment on May 27.

The EDD has three phone lines for unemployme­nt. One is a recorded message. Another is staffed by people who can answer general questions but can’t look into a person’s claim. The third, 8003005616, is staffed with people who can look into claims, but it’s only open from 8 a.m. until noon on weekdays. Getting through is like winning the lottery. The odds of reaching someone are slim, but those who do usually get the help they need.

State Sen. Mike McGuire, DHealdsbur­g, said, “The No. 1, 2 and 3 issues we receive emails and calls about is unemployme­nt benefits. One of the top issues we have heard — they filed more than five weeks ago and never heard back. It’s literally crickets.” He added that “Folks are distraught, they are desperate for funds.”

McGuire added that “for a few weeks, Bank of America was behind in sending out the debit cards” that contain benefits. “Those challenges have now subsided pretty significan­tly.”

The EDD’s problems stem from an unpreceden­ted surge in unemployme­nt claims — the state’s unemployme­nt rate shot from a record low 3.9% in February to 15.5% in April — flooding into what Su called an “antiquated” system illequippe­d to manage complex new programs such as pandemic benefits.

Newsom’s budget proposal calls for giving EDD an extra $46 million in 202021 “to continue implementa­tion of the Benefit Systems Modernizat­ion Project.”

Meanwhile, the EDD has received $118 million from the federal government under the Families First Act for administra­tion, which will help pay for a big increase in staffing. The EDD is halfway through hiring 1,800 temporary part and fulltime workers to process claims and assist customers and employers. It will hire an additional 1,200 “to bolster the delivery of critical unemployme­nt services,” EDD spokeswoma­n Loree Levy said in an email.

Su’s letter outlined other changes EDD is implementi­ng, such as finding a “safe and secure way for claimants to upload documents” rather than mailing them. In a “pilot program,” it sent text messages to 105 claimants when their benefits were approved and sent. It is also testing options to provide “faster payment” than mailing out debit cards. She said EDD has increased the number of staffers dedicated to legislativ­e offices from one to 25, and plans to add 20 more. Of those 45, 35 will be trained to resolve unemployme­nt cases.

The EDD is also working with the state technology department and “new vendors” to improve call center operations, Su said. She added that “many of the notices (sent to claimants) need to be written in clearer, customerfr­iendly language, but because the notices are on the UI mainframe, changes take time.”

 ?? Paul Chinn / The Chronicle 2018 ?? State Sen. Jerry Hill, who chairs the committee that oversees the agency, says many constituen­ts are “frustrated and upset.”
Paul Chinn / The Chronicle 2018 State Sen. Jerry Hill, who chairs the committee that oversees the agency, says many constituen­ts are “frustrated and upset.”

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