California’s new unemployment benefits application system is experiencing long waiting times, and tens of thousands of unemployed people who applied did not complete the process in its first six days, many probably because they were unable to do so, state officials said Wednesday.
The findings raised concern among state lawmakers, who said the improvements made by the Employment Development Department don’t do enough to address the agency’s problems.
The new online system for expediting applications for benefits and verifying identities was installed in response to complaints that the previous EDD process was ineffective, plagued by jammed phone lines and computer failures, leaving a backlog of 1.6 million applications that had not been approved so far. month.
A “strike team” appointed by Governor Gavin Newsom indicated two weeks ago that the last remnants of the buildup would not be removed until the end of January and recommended changes, including switching to the new identity verification system provided by a private provider.
Since it became available last Thursday, 101,159 people accessed EDD’s ID.me system seeking to file a claim, and 64%, or 64,950 people, were able to verify their identity online Tuesday night, according to the agency.
Of those people, 6,035 needed the help of an “arbitrator” in a video chat, the agency said.
Another 36,209 people who registered on the system did not verify their identity or speak to a referee for reasons that the agency said could include leaving the screen at a point where further action is required, waiting time or not being able to establish their identity.
During a legislative hearing in Sacramento on Wednesday, Assemblyman David Chiu (D-San Francisco) reminded EDD Director Sharon Hilliard that agency officials said last month that the new system would allow 91% of claims to be verified automatically. She said she was concerned that only 64% of those who signed had achieved verification by Tuesday.
“That’s a very big difference,” Chiu said. “I’m not convinced that this is really moving things along any faster.
The agency said some people who sought help at the ID.me call center may also have given up because of “longer than average wait times on Monday that were more than an hour away. Others who failed to comply with applications may have been trying to file fraudulent claims, the agency said. Applicants have up to a week to complete the process.
“It is too early to draw firm conclusions as to why those who did not verify their identity could not go through the process, but we will be analyzing this data carefully over the next few weeks to ensure that there are no barriers,” Hilliard said. . “Ultimately, we believe this tool is already more effective and provides better access to a wide range of Californians than our previous method of verifying identity.
EDD officials asked for patience given the initial flurry of applications for the new system and said the best time to get help over the phone is before 10 am.
The agency said it sent e-mails and text messages last week to 136,000 people who signed up for a notice indicating when they could file new unemployment claims, but nearly 36,000 had not attempted to enter the new system by the end of Tuesday.
Hilliard said the agency will evaluate the new system after two weeks and “continue to refine this new process and pave the way for applicants. He told lawmakers that his agency has so far implemented 22 of the 111 recommendations from the strike team.
The agency stopped accepting applications during the two weeks before the new system began operating, and Hilliard told lawmakers Wednesday that by reassigning experienced staff, the agency was able to resolve about 246,000 pending claims.
Republican Assemblyman Jim Patterson of Fresno said the agency still isn’t doing enough.
“The ID.me [system] does nothing to help the hundreds of thousands of people who are still waiting for their identities to be verified,” Patterson said Wednesday. “These people are stuck in the old backwards system that won’t be erased until January 2021 at the earliest.
Some residents who have been waiting months for the claims to be approved held a press conference in front of EDD headquarters in Sacramento to demand faster action, including April Carlton of Citrus Heights, who was fired from an office manager job.
Carlton said EDD denied her claim based on a name change in 2018. She provided the agency with court orders for the name change, immigration documents and proof of residency, but is still waiting for back payments.
“Thank God for my family’s support,” Carlton said. “Without them, I would not have been able to handle this financially stressful and emotionally exasperating process.
Senator Jim Nielsen (R-Tehama), who joined the event attendees, said the delay in reviewing old claims has increased from eight to 11 weeks.
“The experiences of unemployed Californians and the lack of action by the EDD are shameful,” he said.
California’s unemployment benefit system has been overwhelmed with an unprecedented 13.6 million claims since the state ordered residents to stay home in March to reduce the spread of the coronavirus, causing many businesses to close or reduce hours and services, and putting millions out of work. So far, the state has paid out more than $90 billion in benefits, but many said they have waited months for help.
Yolanda Richardson, strike team leader and secretary of the state Government Operations Agency, said in testimony to lawmakers Wednesday that the new system seems to be allowing people to file claims quickly and easily, and is reducing the number that requires manual processing.
The Strike Team report issued on September 19 found that the EDD needed to change an internal culture that is delaying approval of legitimate claims based on fraud fears. Agency officials told the strike team that they believe fraud is involved in tens of thousands of claims from people who have not responded to identity verification requests.
Hilliard told lawmakers Wednesday that he could not estimate how much money had been lost to fraud, but Assemblyman Jim Cooper (D-Elk Grove), a retired sheriff’s captain, estimated that unemployment fraud is “conservatively in the hundreds of millions, if not billions of dollars. . “
Deputy Director Marc Coopwood of the Beverly Hills Police Department told lawmakers at the hearing that his agency arrested more than 100 people for unemployment fraud in the last 60 days, confiscated 200 EDD-issued debit cards with a potential value of up to $4 million in benefits, and seized $500,000 in cash, with the defendants coming from as far away as New York and Georgia.
Hilliard told lawmakers that 669 claims have been suspended due to lack of identity verification, 75 fraud investigations are underway, and additional reviews of 358,000 debit cards issued with payments are underway.
State lawmakers expressed concern that the action could deprive legitimate applicants of access to the money they need to pay rent and food.
Chiu complained to Hilliard that only 27 of EDD’s 9,000 employees are dedicated to investigating fraud.
“I find it bureaucratic and criminally negligent that under your leadership you have not been more engaged in this fraud if potentially billions of dollars are being stolen from the people of California,” Chiu told Hilliard.
She questioned the criticism, but added, “I think we can always do more.