California to pay for all backlogged jobless claims
The state of California has agreed to pay for all the backlogged jobless claims even if they are valid or not, due to the delayed unemployment checks caused by a computer delay.
Officials at the California's Employment Development Department are working to resolve the issue and are manually processing claims. The issue emerged as the state moved to a new computer system over Labor Day weekend. The problems surfaced as desperate claimants jammed the phone lines of the agencies and took to the social networks to complaint about the system.
Morgenstern said in the letter that, "Even with these actions and others, it is unlikely that the claims backlog will be reduced quickly enough to respond to the very real financial hardship now being experienced by too many of our residents relying on timely payment of their UI benefits. Consequently, I am directing EDD to immediately begin the process of paying backlogged claims for continued UI benefits prior to a final determination of eligibility."
The head of California's state labor agency, Marty Morgenstern issued a letter asking the state's unemployment agency to pay for all the backlogged claims as soon as possible without determine if the claims are valid or invalid. Some people, who are not eligible to receive payments, will receive them anyway and the EDD will recover the amount later.