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Nearly 1M self-employed suddenly required to prove they deserved EDD benefits or pay it all back - YouTube
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two months ago the federal government
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stopped providing special unemployment
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benefits to gig workers independent
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contractors and the self-employed those
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special benefits were meant to throw a
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lifeline of course to those who lost
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their income due to the pandemic but
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didn't qualify for traditional
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unemployment benefits the benefits began
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almost two years ago but now the edd is
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suddenly requiring these workers to
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prove they really were eligible or they
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have to pay them all back seven on your
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side michael finney is here with the
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latest upset at the edd michael imagine
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hearing this now this is coming as a
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shock just as folks are getting back on
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their feet as the holidays approach
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nearly 1 million californians are
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receiving these threatening notices edd
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saying it's a federal rule they must
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prove they were really self-employed or
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pay back the money that helped get them
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through the pandemic and get this
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they could get hit with a 30 percent
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penalty
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whether you're in the gig economy
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whether you're an independent contractor
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everybody
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who is now out of work is eligible for
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unemployment insurance those reassuring
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words from federal lawmakers announced
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pandemic relief for all as covet 19
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swept the nation shutting down the
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economy throwing millions out of work
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the government would pay pandemic
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benefits even to the self-employed like
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uber drivers beauticians and store
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owners forced to close shop they really
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needed us to stop working it was really
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really tough for us to survive pay rent
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you know pay bills that money helped all
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of us sort of stay afloat it was great
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to you know have the government help us
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out einstein paredes owns a salon in san
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francisco heather mendoza is a
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hairstylist in san jose both had to stop
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working in the pandemic and received
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unemployment benefits from the edd now
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nearly two years later edd is requiring
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them to prove they deserved it sending
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each of them this startling text message
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at first it was really intimidating i'm
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like oh my gosh what do i have to do now
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it's a pull and tug you know kind of
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thing you know
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like you're giving me money but now you
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don't think i deserve the money the text
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reads edd alert federal rules require
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you to provide documents or risk
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repaying benefits at first einstein
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thought it was a phishing scam people
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trying to steal your identity or your
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information thousands more got the same
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notice in this email reading if you do
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not provide the required documents you
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may have to repay benefits and we will
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add a 30 penalty if you intentionally
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give false information i don't
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understand why a year later you're
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asking me for this information it's just
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you know really nerve-wracking to sit on
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pins and needles you know a year and a
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half later wondering if you're going to
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have to pay that back the edd awarded
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unemployment benefits to nearly 3
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million self-employed californians since
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april 2020 however edd says nearly 1
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million only sign their claims under
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penalty of perjury or lack enough
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documents last december congress
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extended the pandemic benefits but
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required proof of eligibility that was
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to stop rampant fraud scammers
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fabricating stories to collect benefits
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now edd is backtracking to get all
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required paperwork we provided that
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information already it sucks for us
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because we have to go through the extra
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leg work so we're backtracking you know
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we're back pedaling so it makes me feel
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like we were lied to
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so folks are asking why edd didn't
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require everyone to supply documents in
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the first place instead of giving out
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money and asking for proof nearly two
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years later well edd says it just wanted
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to get payments out faster i've posted a
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link with information on what documents
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you need in order to prove you were
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eligible you can get all of that
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information at abc7news.com
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and i would carefully read it yeah 30
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penalty be cautious ouch yeah wow that's
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nerve wracking yeah thank you michael
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you
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