The Employment Development Department of the State of California is experiencing an exponential increase in unemployment claims in 2009. Between January 2008 and July 2008, EDD handled just over 1.8 million claims. For the same period in 2009, the number is almost exactly double at 3.6 million claims. This also means that the EDD is dealing with an increase in the number of fraudulent claims. The major step employers can take to help protect themselves from fraudulent claims is to diligently review all notices from the EDD, including the Notice of Unemployment Claim (Form DE 1101 series), Request for Additional Information (Form DE 1326ER series) and the Notice of Wages Used for Unemployment Insurance Claim (Form DE1545 series.)
If you believe that your reserve account has been hit with a fraudulent claim, you can report the fraud online at: https://eapply4ui.edd.ca.gov/eddcomm/frmFraudStart.htm or by calling EDD at 1-800-229-6297.
Employers are often surprised when employees they believe are ineligible for benefits receive unemployment. If you wish to object to a claim being made by a prior employee, talking to an attorney familiar with EDD's standards can be helpful.
If you have questions about fraudulent unemployment claims or need assistance dealing with a claim made by an employee, please contact Meghan Clark or any member of the Firmís Employment & Labor group.