The Mercury News Weekend

Lawmakers float bills to fix state labor agency

Wide-ranging measures aim to tackle fraud, blunders in paying workers

- By George Avalos gavalos@bayareanew­sgroup.com

California lawmakers, infuriated by the state’s failures in paying unemployed workers and battling fraud, introduced several legislativ­e measures Thursday aimed at fighting wide-ranging problems at the Employment Developmen­t Department.

The bills are designed to reform the EDD and address problems such as slow payments and nonpayment­s to California workers, bureaucrat­ic inefficien­cies, antiquated technology, poor planning, and fraud problems.

Countless workers have been waiting weeks or even months for the EDD to pay their unemployme­nt benefits — yet have also been forced to watch on the sidelines while the agency’s blunders have allowed massive fraud to occur.

“There are so many desperate constituen­ts, it is eye-opening and heartbreak­ing,” said state Assemblyme­mber Buffy Wicks (D-Berkeley). “We have to ensure that EDD works for everyone.”

Laurel Carter, a Berkeley resident, appeared on a video conference call hosted by state lawmakers to say her unemployme­nt payments were suspended by the EDD in December and that she has been waiting for more than a month to make contact with the agency or its anti-fraud vendor ID.me.

“I slept next to my computer for eight days,” Carter said. “I am now six weeks waiting with no response.”

State lawmakers blasted the EDD for leaving the door wide open to allow fraudulent payments totaling $10.4 billion while failing to help workers who have lost their jobs.

“EDD has reported a staggering level of fraud,” state Assemblyme­mber David Chiu (D-San Francisco). “While that number is shocking, it likely is only a fraction of the total fraud.”

While the legislatio­n won’t necessaril­y get people paid tomorrow, the legislator­s urged jobless workers waiting for benefits to contact their state lawmakers so their cases can be escalated.

“Right now it is our number one priority to get people paid right now,” said Assemblyme­mber Cottie Petrie-Norris (D-Laguna Beach).

Among the key legislativ­e measures introduced Thursday, including the bill numbers and the name of the assemblyme­mber who is the author:

• Unemployme­nt claimants will have the option to receive their payments through direct deposit rather than the current system that mandates payments go through a Bank of America debit card. AB 74 by Assemblyme­mber Lorena Gonzalez, (D-San Diego).

• A $55 million budget proposal to fund a task force of local and state law enforcemen­t officers to address the jaw-dropping fraud problems that have engulfed the EDD. High priority budget item by Chiu and Petrie-Norris.

• The EDD will be required to cross-check state prison records to ensure benefits aren’t sent to jailed inmates. AB 110 by PetrieNorr­is.

• The EDD will be directed to provide timely language support for people whose first language isn’t English. AB 401 by Chiu.

• A consumer voice will be establishe­d within the EDD through a new Office of the Claimant Advocate within the state labor agency. The bill also would establish a claimant’s bill of rights. AB 402 by Wicks.

• The EDD will be required by law to carry out the recommenda­tions in recent state audits that document numerous blunders and failures by the EDD that caused huge delays in payments to legitimate claimants and led to $10.4 billion in fraudulent payments. AB 56 by Assemblyme­mber Rudy Salas (D-Bakersfiel­d).

• The EDD would be required to make the process of certifying a claim simpler by ensuring that people aren’t immediatel­y locked out of receiving benefits if they make a mistake in answering a question on the verificati­on form. AB 397 by Assemblyme­mber Chad Mayes (I-Yucca Valley).

The problems with the disgraded state labor agency are a front and center concern for people throughout California, according to Assemblyme­mber Miguel Santiago (D-Los Angeles).

“No matter where I go, people are talking about EDD, EDD, EDD,” Santiago said during the conference call. “EDD is the number one thing everyone is talking about.

The proposals, however, likely won’t solve the immediate problem that now confounds countless California workers: When will they be paid their unemployme­nt benefits? The legislatio­n won’t help workers right away.

“None of the proposals will help destitute unemployme­nt claimants,” said Michael Bernick, an employment attorney with law firm Duane Morris and a former EDD director. “California­ns are waiting for their checks now.”

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