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Unemployment insurance fund headed for insolvency
Oakland Tribune ^ | 10/12/2008 | Josh Richman

Posted on 10/14/2008 5:00:17 PM PDT by RLM

Assembly Labor and Employment Committee Chairman Sandre Swanson, D-Alameda, says lawmakers are going to have to work across the aisle to fix California's unemployment insurance fund, which will be broke by January.

He apparently means lawmakers should be talking about raising the payroll tax that employers pay on each worker to bankroll the state unemployment fund. And for Legislative Republicans presumably still smug about preventing any tax increases in this year's budget fiasco, that's going to be a tall order.

(Excerpt) Read more at contracostatimes.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: government; taxes; unemployment
Like everything else the government manages and abuses, it eventually goes broke. The Employment Development Department (Unemployment Office) and their administrative law judges, interpret the already liberal law very much in favor of the applicant. The system is rife with abuse by people that don’t even want to work and simply milk the system. Consequently those who want to work, and are unemployed through no fault of their own, may have reduced benefits, or more likely, employers will be tapped to cover the fraud. Isn’t it great to do business in California?
1 posted on 10/14/2008 5:00:17 PM PDT by RLM
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To: RLM

and just think the job cuts are just beginning
ouch


2 posted on 10/14/2008 5:02:20 PM PDT by She hits a grand slam tonight
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To: RLM
I know of a guy that was fired for cause

Big time.

EDD said the reason for firing him was sufficient for him to not collect, but they gave it to him anyway.

It used to be that the EDD favored not giving payments to miscreants, but now they seem to like to.

3 posted on 10/14/2008 5:04:32 PM PDT by Syncro (Tagline: optional, printed after your name on post)
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To: RLM

No problemo, just tell them to call uncle Paulie and he will give them a bailout.


4 posted on 10/14/2008 5:15:01 PM PDT by biff
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To: Syncro

EDD said the reason for firing him was sufficient for him to not collect, but they gave it to him anyway.


The unemployment comp bureaucrats , like most bureaucrats, like to take the easiest path in their jobs.

They may well have thought that the claimant was more likely to make an appeal if he was denied, as opposed to the employer appealing the approval.

Appeal hearings are work, and may well be a hassle for them-even though it is their job. It might be a good strategy to bluff the bureaucrats out and make them realize (even if it ain’t true) that you WILL appeal when you are in contact with them.


5 posted on 10/14/2008 5:16:44 PM PDT by I_Like_Spam
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To: I_Like_Spam
They have very short deadlines; time periods in which you have to respond.

Several were missed in this case, good reasons were given and a form letter sent to the employer explaining the deadlines.

It seems they want to give out as much money as possible to fired workers.

No wonder they are going bust.

I imagine the employer in this case will get a bump in their % o EDD for unemployment insurance.

6 posted on 10/14/2008 5:24:39 PM PDT by Syncro (Tagline: optional, printed after your name on post)
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To: RLM

This law is so abused. I found out that employees at the local University receive unemployment when they are on christmas break. I know a guy( I think they all do it) who makes great money working outages for Nuclear Plants. They draw unemployment between jobs. Alot work off the book at other jobs also during that time. It is rife with abuse.


7 posted on 10/14/2008 5:31:44 PM PDT by therut
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To: RLM
Kalleefornia... you ain't got a big enough bilge pump to float your boat any longer.

LLS

8 posted on 10/14/2008 5:49:55 PM PDT by LibLieSlayer (GOD, Country, Family... except when it comes to dims!)
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To: RLM
how many weeks they get??? and extensions?
9 posted on 10/14/2008 6:14:18 PM PDT by Chode (American Hedonist - McCain/Palin'08 = http://www.johnmccain.com/)
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To: RLM
There is a need for reform.

Employers should fund individual employee accounts that act as savings vehicles that workers can draw on when unemployed, and rollover to IRAs at retirement. If the govt wants to offer “unemployment insurance” they can tax these accounts to pay for it.

The political pendulum will swing when it's many people being taxed to pay for this fraud ridden scheme rather the a smaller number of employers.

10 posted on 10/14/2008 6:28:25 PM PDT by afortiori
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To: afortiori
Employers should fund individual employee accounts

That's one possibility, as a benefit of employment, but I wouldn't want the government to mandate it.

Another possibility, since this is insurance we're talking about, is to get the government out of the business and turn it over to private insurance companies. Employees could buy the insurance or not.

Private companies have a lot more incentive than the government to make sure that the claims are valid. Making it private would cut down on fraud and abuse quite a bit.

11 posted on 10/14/2008 7:20:46 PM PDT by EvilOverlord (Socialism makes workers into slaves and couch potatoes into kings)
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To: afortiori
Employers should fund individual employee accounts...

Perhaps for very short term. But really, employees should save for a rainy day instead of looking for a bailout. Way, way too many people abuse unemployment. In some states, trade union workers put in about 8-9 months and get unemployment the other 3 - every year.

12 posted on 10/14/2008 7:25:33 PM PDT by meyer (http://neverfindout.org/ - check out some good ads.)
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