Over 1M workers still await payments

Fraud concerns lead to debit cards being frozen for some

The state’s embattled labor agency continues to make progress in chipping away at an avalanche of unemployment claims filed amid government- ordered business shutdowns, but the pace of improvement has slowed, a new report shows.

And in a new twist to combat widespread fraud connected with unemployment payments, some debit cards that are used to make payments to unemployed Californians have been frozen, the state Employment Development Department disclosed — creating the potential for a fresh source of angst for some jobless workers.

Despite modest improvement during the most recent week, slightly more than 1.2 million California workers remain trapped in a backlog that has turned into a kind of unemployment limbo, the EDD reported in the latest update on its battle to become current in paying jobless claims.

Workers who are still stuck in the backlog are either awaiting payments they are owed or a definitive answer about their eligibility to receive ongoing or first-time payments.

The backlog was as high as 1.8 millon at the end of May, according to this news organization’s analysis of official EDD filings compiled by the federal Employment and Training Administration.

By the week ended Oct. 14, the EDD’s total backlog of unemployment claims was 1.2 million, a decrease of about 137,300 from the week ending on Oct. 7, when the agency estimated the backlog was 1.34 million.

Although the backlog declined by 10 percent as of Oct. 14 compared with the totals for the prior week, that’s a slower pace of progress than before. During the week ended Oct. 7, there was a 14 percent decline compared to the prior week.

The state labor agency conceded that fraud related to unemployment payments remains a noticeable issue for the department.

“The EDD is partnering with investigators and Bank of America in examining cases of excessive multiple claims at the same address along with other key fraud indicators,” the EDD said.

Bank of America handles the EDD debit cards that are the gateway for paying jobless benefits to unemployed California workers.

“The priority is to quickly verify the identity of any claimants that may have been impacted

by scammer attacks while shutting down fraudulent claims,” the EDD said.

However, that process could create fresh problems for workers who have lost their jobs and badly need unemployment payments.

“As part of the process, some debit cards have been temporarily frozen until identity can be confirmed,” the EDD said.