Posts tagged Employment Development Department
Stalled Labor Pick Julie Su Lets Herself Off the Hook for California’s Missing Billions
April 2, 2024 // California’s auditor notes that the U.S. Department of Labor has issued helpful “guidance” for state finance officials in “Unemployment Insurance Program Letter 05-24.” Flip over to the U.S. Department of Labor’s DOL 05-24 letter and you learn what Julie Su is up to. The DOL memo says a Covid-era agreement between the feds and state unemployment departments “required states to use the CARES Act funds ‘for the purpose for which the money was paid to the state’ and to ‘take such action as reasonably may be necessary to recover for the account of the United States all benefit amounts erroneously paid and restore any lost or misapplied funds paid to the state for benefits or the administration of the Agreement.” But how will the federal DOL know whether states took “such action as reasonably necessary to recover” the billions stolen by fraudsters? Because the states will tell them so, or, as the DOL put it in inimitable Orwellian language: “Applying state finality laws to the CARES Act UC programs means that, in many instances, the state will not need to take retroactive action to resolve monitoring findings.”
Pizza Hut franchisees lay off more than 1,200 delivery drivers in California as restaurants brace for $20 fast-food wages
December 26, 2023 // Mark Kalinowski, a restaurant-industry analyst, wrote in a note this week that he expected "more harm to come" in various ways as fast-food chains "take action in an attempt to blunt the impact of higher labor costs." Chains such as Chipotle and McDonald's said they planned to pass the costs of higher wages in California to customers by raising menu prices. In 2022, Gov. Gavin Newsom of California signed the FAST Act into law. It called for the minimum wage for fast-food workers to increase to $22 an hour in 2023. But corporate chains such as McDonald's, Chipotle, and Chick-fil-A, as well as franchise advocacy groups, fought the law. A coalition of restaurant-industry organizations said the law could raise costs for fast-food restaurants by $3 billion. They rallied to get a referendum on the ballot.
Biden Bypasses Senate Confirmation in Labor’s Julie Su
October 3, 2023 // According to the GAO, she can stay in the top Labor Department post without Senate confirmation. That effectively cuts out the voters and sets a poor precedent. Now, should some federal secretary depart, the president need only appoint an “acting” replacement. According to the Government Accountability Office, that person can avoid Senate confirmation and remain on the job, regardless of their suitability for the post.
Is She? Can She? Should She? Julie Su Labor Secretary Confirmation Battle Takes New Twists
July 10, 2023 // Finally, the latest news that Su literally ran the EDD into the ground – it has been determined by state Legislative Analyst’s Office to now be “structurally insolvent” while she was in charge has critics again calling for Biden to drop her nomination. “As a result of Julie Su’s historic unemployment insurance fraud and California’s budgetary mismanagement, state businesses are facing billions in tax hikes over the next several years,” said California’s-own Rep, Kevin Kiley (R-Rocklin). “California’s EDD debacle and the incompetence tax small businesses are now forced to pay demonstrate that California’s policies are a warning to, rather than a model for, the nation. They also illustrate just how ill-advised Julie Su’s nomination for US Labor Secretary is.”
Su Squeaks Past Committee on Party Line Vote
April 27, 2023 // According to the California State Auditor, “(D)espite repeated warnings, EDD (under Su) did not bolster its fraud detection efforts until months into the pandemic…(including allowing) claimants to collect benefits even though they were using suspicious addresses—in one case, more than 1,700 claims were coming from a single address.” As to the rate of fraud, California actually realized a rate of about 22% and, while having only about 12% of the nation’s workers, processed 21% of all unemployment claims which, one would assume, should have been seen as a red flag to the EDD.
Julie Su, AB-5 Supporter and Inexperienced Nominee, Faces Criticism for Handling of California’s Unemployment Program
April 26, 2023 // Katy Grimes of the California Globe provides a detailed report. On February 28, when Biden nominated Su, California owed $18,868,506,716.36 to the federal government for unemployment benefits during the pandemic. By the time of Su’s hearing last week, the figure was $19,258,996,070.59, an increase of $390 million. Julie Su oversaw the unemployment program but blamed the Trump administration for the $40 billion loss. Su did not correct false claims that California had one of the lowest fraud rates under her leadership. Su also claimed that 95 percent of the fraud was related to Pandemic Unemployment Assistance (PUA). As Grimes notes, California spent about $25 billion in PUA and lost about $40 billion overall, a fraud rate of almost 160 percent. So Su’s claim was false.
A Win For California’s App-Based Drivers
March 17, 2023 // In an ironic twist, California Attorney General Rob Bonta argued in favor of Prop. 22 to the Court of Appeals even though he voted for AB5 when he was an assemblyman in the California state legislature and was personally opposed to Prop. 22. The state correctly asserted that the will of the voters should prevail, and the Court of Appeals agreed. Former assemblywoman and author of AB5 cried foul about Monday’s ruling, claiming the “system is broken” and that the appeals court “chose to stand with powerful corporations over working people, allowing companies to buy their way out of our state’s labor laws.” Gonzalez, who now heads the California Labor Federation representing 1,200 unions in the state, has no such concerns about the millions of independent contractors and small businesses adversely affected by her disastrous law. From transcribers and translators to sign-language interpreters, videographers, wedding planners, regional theaters, pharmacists, the independent film industry, and more, AB5 has wielded a wrecking ball to the independent workforce in California, particularly impacting female entrepreneurs who have been disproportionately harmed by the law.
Op-ed: Why Biden’s choice for Labor secretary boggles my mind
March 14, 2023 // California Assemblywoman Cottie Petrie-Norris, the Democrat who chairs the Accountability and Administrative Review Committee, told the LA Times, "(Su) has done a tremendous job on many different initiatives, but she has not done a good job at running the Employment Development Department and, as a result, has wasted billions of dollars and, more importantly, caused heartache for millions of Californians." Su also championed the drive to hike California’s minimum wage, a move wildly popular with her union allies, but one that poured gasoline on the fire burning in the state’s alleys, boosting retail prices, moving home ownership beyond the reach of even more state residents and forcing businesses to lay off low-skilled workers they could no longer afford to employ.