California makes change to pay unemployment benefits faster

California has changed how it will pay unemployment benefits

SACRAMENTO, Calif. -- California Gov. Gavin Newsom's administration on Thursday announced a major change in how the state pays unemployment benefits, potentially unlocking payments for up to 100,000 people who have gone weeks or months without assistance. Getting unemployment benefits is a two-step process. First, state officials must decide if people are eligible. If they are, the state starts paying them. But those people must contact the state every two weeks to confirm they are still eligible to keep getting paid. Sometimes, state officials must investigate residents' eligibility after they have been paid. When this happens, the state stops paying them until the investigation is complete. Before the pandemic, these investigations usually did not take too long. But during the pandemic, the state has been overwhelmed with millions of claims that have caused lengthy delays. The Employment Development Department announced Thursday it would keep paying people unemployment benefits even while they are investigating their eligibility. The change is part of a lawsuit settlement between the state and the Center for Workers' Rights, an advocacy group.