EDD Will Deny Unemployment Benefits to Claimants Not Authorized to Work in the U.S.

The Employment Development Department (EDD) has come a long way! As you are aware, Potts & Associates processes unemployment claims on your behalf. We have been fighting very hard to get the EDD and the California Unemployment Insurance Appeals Board to be less liberal in their decision making role and to be more friendly toward employers. The EDD has at least taken a step in that direction probably because of all of the political pressures associated with immigration.

Now, as a result, when the EDD receives a new application for unemployment, they are first verifying the social security number to determine if it is valid and assigned to that person.  If there is any discrepancy, they are sending a letter to the Employer requesting clarification. If you receive one of these letters, forward it to Potts & Associates with the requested information and we will respond to it on your behalf.

The logic behind this new policy is really quite simple. As part of the eligibility for unemployment, the EDD requires that the claimant be “ready and willing to immediately accept new employment.”  Therefore, if the applicant does not have the legal right to work in the U.S., then they are not eligible for unemployment benefits. Suppose also that the Employer has decided to merely reduce the hours of an existing employee, and the employee then files an unemployment claim for partial benefits with the EDD. 

If the EDD then sends a social security mis-match letter to the Employer, it will be deemed by Immigration & Customs Enforcement (ICE) as constructive notice to the Employer that the individual may not be work authorized.  This would require the Employer to take further investigative action.  The Office of Special Counsel for Immigration-Related Unfair Practices under the U.S. Department of Justice, Civil Rights Divsion, has issued the “Do’s and Don’ts” for dealing with “No-Match” letters. This information can be found at their website:

http://www.justice.gov/crt/about/osc/

Their telephone number is 1-800-255-8155. If you have any additional questions regarding claims for unemployment benefits as related to the denial of benefits, please give us a call.