A reported $30 billion had allegedly been distributed to fraudsters.
The Department of Labor announced that it will address fraud and improper payment concerns regarding California’s Unemployment Insurance program. The department sent a letter to California’s Employment Development Department, highlighting issues such as improper payment rates, timeliness of payments, and concerns regarding the accuracy and quality of California’s reported data.
“Financial issues and potential fraud in California’s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs: This ends now,” said Labor Secretary Lori Chavez-DeRemer. “We are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers. I look forward to restoring the California UI program’s integrity and financial health.”
The department also mentioned concerns over California’s empty unemployment insurance trust fund, stating that $21 billion in borrowed funds are now being used to keep it afloat. “Inadequate internal controls” were reported as a reason why $30 billion was distributed to potentially fraudulent claims in the two financial years between 2019 and 2021.
As the Lord Leads, Pray with Us…
- For Labor Department officials as they investigate the potential fraud occurring in California.
- For Secretary Chavez-DeRemer as she leads the Labor Department’s efforts to protect workers and ensure employers comply with federal regulations.
Sources: Department of Labor
