1 Million+ Resident Will Repay Unemployment Benefits After Officials Uncover Fraud
State unemployment officials report that about one million state residents may have to repay unemployment benefits back.
The Employment Development Department (EDD) reports that newly-enacted federal rules require people show proof they were working, planning to work, or being self-employed before the pandemic.
Those who applied for federal Pandemic Unemployment Assistance (PUA) after December 27, 2020, are subject to this rule.
Pandemic Unemployment Assistance had been established in March 2020 to provide assistance to those suffering from the sudden, severe recession caused by the pandemic.
The assistance program ended at the beginning of September.
Individuals affected by the changes were informed over the summer.
Furthermore, Individuals who do not respond may not be able to receive PUA funds this year, and they may have to repay the money starting in 2020.
California and other parts of the United States have seen massive fraud because of the easy access to benefits.
According to state officials, California has paid, in the previous month, an estimated $20 billion or a little more than 11% has been paid since the Covid outbreak in wrongful claims, The Sacramento Bee reported.
“I don’t think people have captured in their mind the enormity of the amount of money has been issued errantly to undeserving people,” said Palmdale Assemblyman Toby Lackey, who displayed pictures of 29 dump trucks piled high with $100 bills, which is roughly half of the money fraudulently taken away.
Through text, email, and on the UI Online homepage the Employment Development Department informed claimants who need to submit the information that they are employed, planning to get employed, or were self-employed prior to the pandemic.
