The California Employment Development Department, or the EDD, has long been the worst run bureaucracy in California, even before the COVID-era when its many deep problems and poor customer service were brought to light via millions of additional claims for unemployment insurance benefits in 2020. Things then got a lot worse. Following Governor Gavin Newsom’s campaign to clawback purportedly fraudulently issued benefits, applicants for unemployment benefits are now being denied benefits at an unprecedented rate. Employees who readily qualify for benefits are now being denied benefits in the name of fighting fraud. Fortunately, an employee who is denied benefits or is being threatened with having to return thousands of dollars worth of benefits is able to fight back against bogus EDD determinations by appealing. This article will briefly explain the EDD appeals process.
First, an employee who wants to appeal or challenge an action or decision by the EDD faces a strict deadline of just thirty days. Importantly, this thirty-day deadline often begins from the date on the EDD’s underlying letter to the applicant (called a “Notice of Determination”). This date is often different from the date that the letter was actually mailed or the date that the envelope was postmarked. Because the EDD will delay the mailing of its letters, this means that the employee will actually have closer to three weeks to appeal. Employee-applicants who want to seek legal help should initiate their search for an attorney right away.
Second, the appealing employee will want to provide the EDD with a written, fact-based explanation for why the employee is challenging the EDD’s decision and why the EDD made the incorrect decision. This written explanation should be succinct, clear, and based on readily provable evidence such as the employee’s own oral testimony or documents. While the EDD will provide a short, one-page appeal form, the short space provided for the employee to explain his or her side of the story is usually insufficient and an attached letter may be used for additional space. The applicant may also want to provide the EDD with written evidence, such as employment records, along with the written explanation. The appeal letter and any evidence should be copied, scanned, and sent via certified mail to the address stated on the Notice of Determination. It is free for the employee to submit the appeal.
The EDD will then schedule a hearing with an EDD judge. Unfortunately, this is a process that can take up to six months from the date that an appeal is submitted by the employee. If the prospect of an EDD hearing with a judge sounds intimidating, do not fret. EDD hearings do not have the look and feel of a regular trial or courtroom and much more relaxed rules of evidence and procedure are applied. Similarly, as of August, 2022 EDD hearings are still being conducting remotely via telephone.
Careful preparation for the hearing is critical. Applicant-employees should thoroughly prepare for their hearing by reviewing their own evidence and written explanation, by reviewing the details of their former employment, and by giving practice answers to likely questions. The hearing itself will typically last between 20 and 40 minutes long and the applicant-employee should assume that his or her former employer will also attend the hearing with the aim of denying the employee’s benefits. The hearing itself will typically begin with the EDD Administrative Law Judge (called an “ALJ”) explaining the hearing process and describing what documents he or she has received in conjunction with the appeal. The ALJ will then ask the employee background questions about the employee’s title, job responsibilities, their rate of pay and frequency of payment, the circumstances surrounding the employee’s termination, and what the employee has done since the termination to look for new work. The employee and former employer will have an opportunity to present evidence through their own testimony and the testimony of witnesses. The applicant and former employer are also permitted to cross examine each other at the hearing, including through an attorney if they are represented.
Following the hearing, the ALJ will issue a written decision in approximately one week and will declare the winner. The ALJ’s written decision can also be appealed, however the prospects of winning that second appeal become much more difficult.
Are you looking for an EDD lawyer? Contact the Law Office of Brian Mathias today.