A widening fraud problem has prodded the state Employment Development Department to suspend unemployment payments to many California workers at the same time coronavirus-linked business shutdowns have left people without a job.
The halt in payments for an unspecified number of workers in the state comes at a time when the EDD is reporting that a backlog of unpaid unemployment claims has again begun to swell.
The brutal bottom line: Many California workers now face suspended unemployment payments due to fraud concerns, a logjam of unpaid legitimate claims, and a loss of work because state and local agencies have imposed business closures to help combat the spread of the coronavirus.
“As part of ongoing efforts to fight fraud, EDD has suspended payment on claims considered high risk,” the EDD stated in a tweet posted on Jan. 3.
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