Community Funding Partners

Redding Chamber News

Have a local business story to share?

Redding Chamber of Commerce members can submit articles ranging from press releases to grand opening celebrations to new product offers.

Send us your PDF or Word Doc and a photo and we’ll do the rest.

In Support of AB 980 – Employment Development Department Modernization

AB 980

 

District 1 Assemblywoman Megan Dahle has authored a bill that will modernize the Employment Development Department’s process of providing important  financial information to employers regarding claimants that  have been approved to receive benefits from their account.  EDD will be required make this information available on its website in real-time, as claims are approved, thereby preventing billions of dollars of insurance fraud at the expense of the taxpayer. The bill will be heard at an Assembly Insurance Committee Hearing in the near future.

Please consider sending in a letter of support to staff contact Tess Scherkenback at  tess.scherkenback@asm.ca.gov or by submitting them online to the Assembly Insurance Committee at https://ains.assembly.ca.gov/. At this link, on the right top side of the website, there is a button that says submit position letter. Download a draft of the support letter by clicking the button at the bottom of the page. 

The following information is taken from the AB 980 Fact Sheet.

Bill Summary:
AB 980 will increase transparency and accessibility of claim  information by requiring Employment Development  Department (EDD) to make information about claims that  have been approved available on its website for employers to  review.

Problem:
Since the start of the COVID-19 pandemic, EDD has been  embroiled in scandal and criticism for their failure to  process UI claims and excessive fraud within their system.  Current estimates suggest that nearly $11 billion has been paid out in fraudulent UI claims over the course of the  pandemic, and their system is in desperate need of  improvements to mitigate this. 

Employers’ lack of access to information on approved UI  claims is a prime example of EDD’s need for reform to  prevent fraud. After a UI claim is approved, employers have  no way of accessing a complete list of claims that have been  approved to draw benefits from their account and dispute  fraudulent claims until they receive their Statement of  Charges to Reserve Account. This statement is delivered in  the mail once a year, and only then do employers have  necessary information to report potentially fraudulent  claims. This excessive window of time between receiving  statements leaves the potential for fraud to occur before an  employer can report it. 

Solution:
AB 980 will modernize EDD’s process of providing important  financial information to employers regarding claimants that  have been approved to receive benefits from their account.  EDD will be required make this information available on its website in real-time, as claims are approved.  

Furthermore, EDD will be required to update this list at least  once every two weeks to ensure the list of approved claimants  is current, and include on this webpage a method by which the  employer can object to the approved claim and provide  additional information about the claimant. 

READ THE ENTIRE FACT SHEET HERE>

Share this article >>
Share on facebook
Share on twitter
Share on linkedin
LATEST HEADLINES
Redding Chamber of Commerce
California Chamber of Commerce
US Chamber of Commerce
Categories