Employment Development Department

Employment Development Department
Agency overview
Annual budget US$ 25.9 billion (2011)
Parent agency California Labor and Workforce Development Agency
Website www.edd.ca.gov

The Employment Development Department (EDD) is part of the Labor and Workforce Development Agency of the executive branch of the State of California.[1] EDD offers a variety of services to millions of Californians under the Job Service, Unemployment Insurance, Disability Insurance, Workforce Investment, and Labor Market Information programs.[2] As California's largest tax collection agency, EDD also handles the audit and collection of payroll taxes and maintains employment records for more than 17 million California workers.[2]

One of the largest California state departments, EDD has "nearly 10,000 employees providing services at more than 400 locations"[3] and an annual budget of nearly $12 billion.[4] EDD employees provide many services, including:[2]

History

A 1935 California statute created the Department of Employment, which was renamed in 1968 to the Department of Human Resources Development by another statute.[5] The name of the department was changed in 1974 to "Employment Development Department".[5]

In December 1993, a man used firearms to kill three people and injure four others at the EDD office in Oxnard; later he killed a policeman before police shot him dead.[6] The office was subsequently moved.[7]

Mark Sanders (known as "Mr. EDD"), having worked 35 years at EDD including a brief period as interim director, retired from EDD in 1996 and died in 1997.[8] He was remembered for "represent[ing] the values, the principles and the services... [EDD] stands for."[8]

EDD's director between 1999 and 2004 was Michael Bernick.[9]

The director of EDD between November 2004 and December 2009 was Patrick W. (Pat) Henning.[10] A "self-described progressive, a lifelong Democrat and labor activist," Henning was appointed to his position by Republican governor Arnold Schwarzenegger.[11]

Organization

Offices

The Director's Office orchestrates the direction of the Department to ensure that programs and services are consistent with the Department's mission statement and goals.[2] The current director of the EDD is Patrick Henning Jr. In addition, the Director's Office consists of The Equal Employment Opportunity Office, the Legal Office, and the Legislative Liaison Office.

The Equal Employment Opportunity Office investigates and resolves discrimination complaints filed against the Department by employees, employers, and applicants for employment and training, and provides consultant services on all aspects of equal employment opportunity.[2]

The Legal Office provides legal advice and support to the Director and Department management in connection with court cases, administrative hearings, contracts, legislation, and regulations.[2]

The Legislative Liaison Office serves as the Department's primary liaison with state and federal elected officials and provides information, analyses, and guidance on legislative matters to the Secretary of the Labor and Workforce Development Agency, the Governor's Office, other governmental entities, and outside groups.[2]

Branches

The Administration Branch provides administrative support to the Department, including providing business operations planning and support services, human resource services for EDD employees, and accounting for the Department's annual budget.[2]

The Disability Insurance Branch has over 1,200 employees organized into a Central Office; a Field Operations Division (with Claims Management Offices and Customer Service Centers); and an Office of the Medical Director.[12] The Branch administers the State Disability Insurance program (which includes Disability Insurance and Paid Family Leave), as well as Non-Industrial Disability Insurance. Among other initiatives, by 2011 the Branch plans to implement a Disability Insurance Automation project for more efficient and effective electronic communications and information processing.[12][13] The state's legal and regulatory requirements for the Branch's programs are found in the California Unemployment Insurance Code, the California Labor Code, and Title 22 of the California Code of Regulations.[14]

The Information Technology Branch is responsible for automation planning, policy, development, maintenance, support, operations, and oversight of automation systems within the Department.[2] The branch provides data processing technical support and services for one of the largest information technology environments in State government, including the planning, development, maintenance, installation, and support of telecommunications systems such as cabling, voice, and data equipment.

The Program Review Branch performs review oversight and technical assistance functions for the Director, EDD's executive staff, and state and local EDD program management.[2] Its services include:

The Branch is responsible for fraud detection and deterrence "through sound internal control structures, internal and external audits, risk assessments, detailed Quality Control reviews, and criminal investigations".[15]

The Public Affairs Branch provides outreach, marketing services, communications, and training that support EDD programs[2] and the employment of special targeted populations. The branch is composed of the Marketing and Constituent Services Office, the Communications Office and the Web Content and Usability Group.

The Tax Branch, one of the largest tax collection agencies in the nation, handles all administrative, education, customer service, and enforcement functions for the audit and collection of Unemployment Insurance Tax, Employment Training Tax, State Disability Insurance Tax, and Personal Income Tax withholding.[2] Unemployment Insurance Tax and Employment Training Tax are employer contributions, while State Disability Insurance Tax and Personal Income Tax are withheld from employees' wages.[16] Each year, EDD collects more than $31 billion in payroll taxes, including nearly $25 billion in Personal Income Tax, processes more than 30 million employer payroll tax documents and remittances, and maintains records for more than 17 million workers. The branch offers a variety of payroll seminars and workshops and provides one-on-one services to employers to help them meet their tax obligations.

The Unemployment Insurance Branch administers the Unemployment Insurance program.

The Workforce Services Branch includes several major programs. The Branch administers the federal Worker Adjustment and Retraining Notification Act (WARN Act) and the California law that expands upon the WARN Act.[17] Retrieved July

Programs

State Disability Insurance (SDI)

The State Disability Insurance (SDI) partial wage replacement benefit program is administered by the Disability Insurance Branch and began in California in 1946; in the United States, the only other state and territorial governments that provide disability insurance are those of Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.[18]

With some exceptions, SDI coverage is required "for employees working for employers with payrolls in excess of $100 in a calendar quarter."[18] SDI covers approximately 12.8 million workers in California, who participate either in the State Plan, in Voluntary Plans, or in the Disability Insurance Elective Coverage program:[12][18]

Two types of benefits are available under SDI: Disability Insurance and Paid Family Leave.[12][18]

Nonindustrial Disability Insurance (NDI)

The Disability Insurance Branch administers the NDI program for state employees who are not covered by SDI.[12] The NDI program provides disability insurance benefits similar to SDI's disability insurance benefits, but NDI benefits are payable by the California State Controller for only a maximum of 182 days.[12]

Unemployment Insurance

Established more than 60 years ago, the Unemployment Insurance program provides benefits to individuals who have lost their jobs through no fault of their own, are actively seeking work, are able to work, and willing to accept employment.[2] Each year, EDD pays out more than $6.2 billion in Unemployment Insurance benefits and receives and processes more than 2.4 million new claims. California's Unemployment Insurance program is the largest in the United States "in terms of participating employers, revenue collected, and benefits paid".[23] The program is funded by mandated employer contributions "on up to $7,000 in wages paid to each worker," with the tax rate increasing if more former employees make claims on the employer's account.[24]

Denials of unemployment claims by the EDD may be challenged by filing an appeal with the California Unemployment Insurance Appeals Board (CUIAB). [25] Retrieved April 25, 2015. In order to timely appeal an EDD denial of unemployment insurance benefits, the appeal form must be submitted within 20 days' of the date listed on the Notice of Determination wherein the benefits were denied. Otherwise, good cause must be shown for a late filing.[26]

Besides regular unemployment insurance, additional services provided under the Unemployment Insurance program include Work Sharing, Disaster Unemployment Assistance, and Trade Adjustment Assistance. Work Sharing "allows for the payment of Unemployment Insurance benefits to employees of participating employers whose wages and hours have been reduced"; a person can be eligible for Disaster Unemployment Assistance if the President declares a disaster in his/her area; and Trade Adjustment Assistance "provides special federally funded assistance for workers who lose their jobs or whose hours of work and wages are reduced as the result of trade with other countries".[27]

Job services

The Job Service program (also known as Employment Service[3]) offers services at hundreds of locations statewide and connects one million job seekers with employers each year. One of the largest public employment services in the world,[2] it is authorized by the federal Wagner-Peyser Act as amended by the Workforce Investment Act of 1998.[3] Job seeker services include job referral, job search workshops, placement services, and special assistance to individuals who are experiencing difficulty in finding work. Services to employers include matching job openings with qualified candidates and specialized recruitment campaigns. Components of the Job Service program include:

Labor market information

Within the Branch, the Labor Market Information Division collects, analyzes, and publishes (e.g., on its Web site) thousands of statistics on agricultural and nonagricultural industrial employment; occupational duties, skills, wages, and staffing patterns; and labor force statistics and characteristics. The Division provides employment and unemployment data; economic development and planning information; industry and occupational characteristics, trends, and wage information; and social and demographic information.[30]

See also

References

  1. California Labor and Workforce Development Agency. Retrieved July 20, 2008.
  2. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Employment Development Department. EDD Services. Retrieved July 20, 2008.
  3. 1 2 3 EDD. Fact sheet. Employment Development Department. May 2008. Retrieved July 20, 2008.
  4. Department of Finance, State of California. Governor's Budget 2008-09. Labor and Workforce Development. 7100 Employment Development Department. Retrieved July 21, 2008.
  5. 1 2 Crawford, Jeff. Inventory of the Department of Employment and the Department of Human Resources Development records. California Secretary of State, 2000. Retrieved July 21, 2008.
  6. Woodard, Christopher, and Terri Hardy. 5 killed in rampage. Officer among dead in shooting spree. Gunman slain. Daily News of Los Angeles, December 3, 1993.
  7. Pattison, Kermit. Oxnard jobless office, where man killed 3, to be moved. Daily News of Los Angeles, July 2, 1994.
  8. 1 2 Gibson, Steve. Retirement didn't stop "Mr. EDD" from assisting farm workers. Sacramento Bee, July 19, 1997.
  9. Bernick, Michael. 6 lessons I learned in the Capitol - Maintain the integrity of public programs; avoid arrogance; respect the state's professionals. Sacramento Bee, May 23, 2004.
  10. EDD Executive Staff biographies and photographs. Retrieved July 20, 2008.
  11. Furillo. Andy. He's a labor guy who works for a GOP boss. Sacramento Bee, October 10, 2005.
  12. 1 2 3 4 5 6 EDD. Disability Insurance Branch strategic business plan 2007-2011. Retrieved July 21, 2008.
  13. EDD. Future Disability Insurance automation. Retrieved July 21, 2008.
  14. EDD. Legal references. Retrieved July 21, 2008.
  15. EDD. Annual report. Fraud deterrence and detection activities. A report to the California Legislature. Thirteenth report. June 2007. Retrieved July 21, 2008.
  16. EDD. What are state payroll taxes? Retrieved July 21, 2008.
  17. EDD. Worker Adjustment and Retraining Notification (WARN) information for employers.
  18. 1 2 3 4 EDD. Fact sheet. State Disability Insurance. June 2008. Retrieved July 21, 2008.
  19. http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm
  20. 1 2 EDD. Quick statistics. Retrieved July 21, 2008.
  21. Lu, Adrienne. Paid family leave now law in N.J. Philadelphia Inquirer, May 3, 2008. Retrieved July 21, 2008.
  22. EDD. The time you need for times like these. Paid Family Leave insurance program. January 2008. Retrieved July 21, 2008.
  23. EDD. Unemployment Insurance Program business plan 2007-2012. November 2007. Retrieved July 21, 2008.
  24. EDD. Fact sheet. Unemployment Insurance Program. May 2008. Retrieved July 21, 2008.
  25. http://www.cmorlaw.com/employment-law/unemployment-benefits-appeals/
  26. http://www.cmorlaw.com/employment-law/unemployment-benefits-appeals/
  27. EDD. Types of claims. Retrieved July 21, 2008.
  28. EDD. Employment Training Network (ETN) overview. Retrieved July 20, 2008.
  29. U.S. Department of Labor. One-Stop Career Centers. Retrieved July 20, 2008.
  30. EDD. Fact sheet. Labor market information. May 2006. Retrieved July 20, 2008.

External links

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