Lawmakers Push Reforms at State Unemployment Agency As The Jobless Face New Delays

Publication: Los Angeles Times

California legislators on Thursday pushed ahead with reforms targeting the state’s troubled unemployment agency as lawmakers condemned it for yet another significant error that has interrupted benefit payments to thousands of jobless residents.

Agency officials apologized for a new computer glitch that has prevented many people from filing new claims online, but lawmakers note it is just the latest in a string of technological problems that have plagued the state Employment Development Department since the pandemic began more than a year ago.

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Meanwhile, federal regulators have begun looking at how Bank of America, which contracts with the EDD to issue debit cards to deliver benefits, has handled a flood of fraudulent unemployment claims with actions that included freezing accounts, affecting some people who are legitimately in need of financial aid.

“Californians relying on unemployment benefits during the pandemic have been let down time and time again,” said Assemblyman Phil Ting (D-San Francisco), chairman of the Assembly Budget Committee. “Whether they’re trying to resolve fraudulent charges, access their money or simply want to talk to a real person on the phone, significant delays in solving problems have caused needless suffering.”