Unemployment department under fire

Nearly 1 million claims backlogged

With federal unemployment benefits of $600 per week set to expire today and nearly 1 million claims backlogged at California’s unemployment department, millions of Californians are teetering on the edge of a financial cliff — and increasingly desperate for answers from elected officials.

State lawmakers on Thursday eviscerated the beleaguered agency for leaving many residents in limbo without a lifeline, a day after Gov. Gavin Newsom launched a “strike team” to investigate its outdated technology and share recommendations within the next 45 days.

Though the Employment Development Department has paid nearly $55 billion in benefits to more than 7.6 million people since the onset of the pandemic, it’s struggled to keep up with demand. Its rate of paying claims within two weeks fell from 88% in March to 52% in June, despite hiring 5,300 temporary employees, expanding its call center hours, and creating an online chat bot.

And if additional federal benefits are in the works, it could take the department up to 20 weeks to process them, director Sharon Hilliard said Thursday.

  • Assemblymember Jay Obernolte, a Big Bear Lake Republican: “I think that the level of outrage that you’re hearing today would be nothing compared to the level of outrage if we tell the people of California it would take almost half a year to process their unemployment insurance supplement.”

It could also take the state until at least the end of September to process backlogged claims.

  • A San Diego resident testifying amid tears Thursday: “This is my life. This is my family’s life. And it’s very hard to have to fight for things that I was awarded or entitled to.”

Republican lawmakers recently requested a state audit of the department, but a committee this week delayed considering it.

Cal Matters contributed to this post.