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Industry Insights

CAAA: An Unhappy Labor Day

  • State: California

The State Auditor just released a new report on the failures of the Employment Development Department’s mishandling of the state’s unemployment insurance program, which resulted in a $20 billion loss.

Fifty percent of denied claims are overturned, the third-worst rate in the nation.

An audit nine years ago found the same results.

In nine years, no improvement at EDD.

No difference at the Division of Workers' Compensation, which runs a system that ranks even worse.

The Workers Compensation Research Institute ranked California’s delays from date of injury to date of medical treatment (except for the initial medical treatment) as the worst it studied in the nation.

Seventy-four days for major surgery.

What does this mean when it comes to legislative reform?

EDD won’t support unemployment insurance for striking workers. DWC won’t extend temporary disability benefits when treatment is delayed.

EDD plus DWC equals and unhappy Labor Day.

This opinion by the California Applicants' Attorneys Association communications team is republished, with permission, from the CAAA website.

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