Labor/Employment,
Government
Dec. 9, 2020
Legislation aims to stem fraudulent unemployment claims
The bills were introduced the same day the Bank of America, which has contracted with the Employment Development Department to distribute debit cards with unemployment payments, issued a letter to state legislators saying the agency may have paid out $2 billion in fraudulent unemployment benefits.
The massive swell in state unemployment claims since March and several prosecutors' findings of widespread fraud by recipients of benefits from the Employment Development Department motivated a group of bills the Legislature introduced Monday seeking to change how the agency verifies and processes claims. Some of these changes address longstanding loopholes in processes that have likely been exploited for years, but were only recently exposed due to the pandemic, att...
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