California Employment Department Strained as Claims for Unemployment Skyrocket

While there have been talks between some state and national officials of the possibilities of reopening businesses, the impact of the pandemic on our economy continues. Recently, the CARES Act, once containing over $300 billion in relief that was passed at the end of March, had exhausted its funds that were meant to help small businesses. On April 24, President Trump signed to pass a second stimulus package, but the details of how this impacts unemployed workers are still being evaluated. For now, companies all over the nation are hurting from being mandated to close their doors. 

In effect, many businesses are forced to let go of hard-working employees, because they are unable to pay these workers for their time. As more employees are terminated, the rise in unemployment claims has put a heavy strain on the employment departments. By the fifth week of this ongoing crisis, more than 3 million of California’s residents lost their jobs after Governor Gavin Newsom’s stay-at-home order mandated that businesses deemed non-essential close down until further notice. Granted, many of these businesses are able to operate remotely, but with business slowing for many, it has forced these companies to make some very tough decisions regarding their staff sizes. 

In the last couple of weeks, the IRS has sent out stimulus payments to qualifying individuals, couples, and families as a means to provide some relief to those who are financially hurting during this time. If you haven’t already, you can check the status of your payment and if you qualify by visiting the Get My Payment Portal on the IRS website. Recently, a second stimulus check has been proposed that may further benefit those who have lost their jobs due to coronavirus. For now, millions are still waiting for updates on the status of their unemployment claims. 


Useful Resources 


You can find helpful resources for employee/employer rights and unemployment benefits by visiting websites for the Department of Labor, Equal Employment Opportunity Commission, and the California Employment Development Department


About Angela Reddock-Wright


Angela Reddock-Wright is an employment law attorney, mediator, arbitrator and workplace/Title IX investigator in Los Angeles, CA. Known as the “Workplace Guru,” Angela is an influencer and leading authority on employment, workplace/HR, Title IX, hazing and bullying issues. She is a regular legal and media commentator and analyst and has appeared on and provided commentary with such media outlets as Law and Crime Court TV, CNN, ABC, CBS, KTLA, KPCC Airtalk-89.3, the New York Times, the Washington Post, the LA Times, People Magazine, and Essence Magazine.


For more information regarding tips on how to manage and deal with coronavirus in the workplace, connect with Angela on LinkedIn for new updates, or contact her here

This communication is not legal advice. It is educational only. For legal advice, consult with an experienced employment law attorney in your state or city.


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