SACRAMENTO, Calif. (KNX) — Roughly one million people who got unemployment benefits from the federal government’s pandemic benefit program may have to prove to the state prior work history — or face repaying any benefits received from Sacramento.
“A potential overpayment could be all benefits you received,” the state’s Employment Development Department (EDD) warned on its website.
Those affected would have received simultaneous payments from the federal Pandemic Unemployment Assistance (PUA) program. That included an estimated 2.9 million Californians, and was intended to help people who might not qualify for state-funded unemployment insurance, like independent contractors.
Initially, EDD could only get income substantiation from recipients of federal aid if they opted to collect more in weekly benefits than the minimum of $167. But those who did not request an increase were not required to provide any verification of income or provide proof of work.
About 30% who received PUA still have not to provide employment verification. Proof of employment could be a letter from a prospective employer showing the date work was set to begin, business licenses, state or federal employer identification numbers, business plans, or lease agreements.
Anyone who received PUA benefits in 2020 must submit documentation indicating work in 2019. If they began receiving PUA benefits in 2021, they must document work history for 2020.
EDD has already begun notifying those who need to submit information by text, email, and on its website. If a beneficiary fails to respond by the due date, they’ll receive a single follow-up notice in the mail before being deemed ineligible for PUA, triggering a potentially hefty bill from the state.
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