Employment Development Department

Employment Development Department

The Employment Development Department (EDD) is part of the Labor and Workforce Development Agency of the executive branch of the State of California [ [http://labor.ca.gov/ California Labor and Workforce Development Agency.] Retrieved July 20, 2008.] . EDD offers a variety of services to millions of Californians under the Job Service, Unemployment Insurance, Disability Insurance, Workforce Investment, and Labor Market Information programsEmployment Development Department. [http://www.edd.ca.gov/About_EDD/EDD_Services.htm EDD Services.] Retrieved July 20, 2008.] . As California's largest tax collection agency, EDD also handles the audit and collection of payroll taxes and maintains employment records for more than 17 million California workers.

One of the largest California state departments, EDD has "nearly 10,000 employees providing services at more than 400 locations"EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de8714a.pdf Fact sheet. Employment Development Department.] May 2008. Retrieved July 20, 2008.] and an annual budget of nearly $12 billion [Department of Finance, State of California. [http://www.ebudget.ca.gov/StateAgencyBudgets/7000/7100/department.html Governor's Budget 2008-09. Labor and Workforce Development. 7100 Employment Development Department.] Retrieved July 21, 2008.] . EDD employees provide many services, including:
*Assisting California employers in meeting their labor needs.
*Helping California job seekers obtain employment.
*Administering the federally-funded workforce investment programs for adults, dislocated workers, and youth.
*Assisting the disadvantaged and welfare-to-work recipients to become self-sufficient.
*Helping unemployed and disabled workers by administering the Unemployment Insurance and Disability Insurance programs.
*Supporting state activities and benefit programs by collecting and administering employment-related taxes.
*Providing comprehensive labor market information.


A 1935 California statute created the Department of Employment, which was renamed in 1968 to the Department of Human Resources Development by another statuteCrawford, Jeff. [http://content.cdlib.org/view?docId=kt3r29q8dv&doc.view=entire_text&brand=oac Inventory of the Department of Employment and the Department of Human Resources Development records.] California Secretary of State, 2000. Retrieved July 21, 2008.] . The name of the department was changed in 1974 to "Employment Development Department".

In December 1993, a man used firearms to kill three people and injure four others at the EDD office in Oxnard; later he killed a policeman before police shot him dead. [Woodard, Christopher, and Terri Hardy. 5 killed in rampage. Officer among dead in shooting spree. Gunman slain. "Daily News of Los Angeles", December 3, 1993.] The office was subsequently moved. [Pattison, Kermit. Oxnard jobless office, where man killed 3, to be moved. "Daily News of Los Angeles", July 2, 1994.]

Mark Sanders (known as "Mr. EDD"), having worked 35 years at EDD including a brief period as interim director, retired from EDD in 1996 and died in 1997.Gibson, Steve. Retirement didn't stop "Mr. EDD" from assisting farm workers. "Sacramento Bee", July 19, 1997.] He was remembered for "represent [ing] the values, the principles and the services... [EDD] stands for."

EDD's director between 1999 and 2004 was Michael BernickBernick, Michael. 6 lessons I learned in the Capitol - Maintain the integrity of public programs; avoid arrogance; respect the state's professionals. "Sacramento Bee", May 23, 2004.] .

Director and Director's Office

The director of EDD between November 2004 and the present has been Patrick W. (Pat) Henning [ [http://www.edd.ca.gov/About_EDD/Executive_Staff_Bios.htm#PatrickHenning EDD Executive Staff biographies and photographs.] Retrieved July 20, 2008.] . A "self-described progressive, a lifelong Democrat and labor activist," Henning was appointed to his position by Republican governor Arnold Schwarzenegger [Furillo. Andy. He's a labor guy who works for a GOP boss. "Sacramento Bee", October 10, 2005.] .

The "Director's Office" orchestrates the direction of the Department to ensure that programs and services are consistent with the Department's mission statement and goals. In addition, the Director's Office consists of:

Equal Employment Opportunity Office

The "Equal Employment Opportunity Office" investigates and resolves discrimination complaints filed against the Department by employees, employers, and applicants for employment and training, and provides consultant services on all aspects of equal employment opportunity.

Legal Office

The "Legal Office" provides legal advice and support to the Director and Department management in connection with court cases, administrative hearings, contracts, legislation, and regulations.

Legislative Liaison Office

The "Legislative Liaison Office" serves as the Department's primary liaison with state and federal elected officials and provides information, analyses, and guidance on legislative matters to the Secretary of the Labor and Workforce Development Agency, the Governor's Office, other governmental entities, and outside groups.


Administration Branch

The "Administration Branch" provides administrative support to the Department, including providing business operations planning and support services, human resource services for EDD employees, and accounting for the Department's annual budget.

Disability Insurance Branch

The "Disability Insurance Branch" has over 1,200 employees organized into a Central Office; a Field Operations Division (with Claims Management Offices and Customer Service Centers); and an Office of the Medical DirectorEDD. [http://www.edd.ca.gov/pdf_pub_ctr/distrategicplan2007.pdf Disability Insurance Branch strategic business plan 2007-2011.] Retrieved July 21, 2008.] . The Branch administers the State Disability Insurance program (which includes Disability Insurance and Paid Family Leave), as well as Non-Industrial Disability Insurance. Among other initiatives, by 2011 the Branch plans to implement a Disability Insurance Automation project for more efficient and effective electronic communications and information processing [EDD. [http://www.edd.ca.gov/Disability/Future_Disability_Insurance_Automation.htm Future Disability Insurance automation.] Retrieved July 21, 2008.] . The state's legal and regulatory requirements for the Branch's programs are found in the California Unemployment Insurance Code, the California Labor Code, and Title 22 of the California Code of Regulations [EDD. [http://www.edd.ca.gov/Disability/Legal_References.htm Legal references.] Retrieved July 21, 2008.] .

tate Disability Insurance (SDI)

The State Disability Insurance (SDI) partial wage replacement benefit program began in California in 1946; in the United States, the only other state and territorial governments that provide disability insurance are those of Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de8714c.pdf Fact sheet. State Disability Insurance.] June 2008. Retrieved July 21, 2008.]

With some exceptions, SDI coverage is required "for employees working for employers with payrolls in excess of $100 in a calendar quarter." SDI covers approximately 12.8 million workers in California, who participate either in the State Plan, in Voluntary Plans, or in the Disability Insurance Elective Coverage program:
* The State Plan is administered by EDD and is "financed entirely by California workers through a payroll tax on their earnings." As of 2008, the SDI withholding rate is 0.8% on wages up to $86,698 per employee.
* If an employer and a majority of the employees of a company consent, a private Voluntary Plan "may be substituted for the State Plan if the Voluntary Plan matches the State Plan's benefits, provides at least one greater benefit, and costs the employee no more than the State Plan." Furthermore, "an employee may choose State Plan coverage even though a Voluntary Plan is available where he/she works." Only about 3.8 percent of workers covered by SDI are covered through Voluntary Plans, which the Disability Insurance Branch oversees "to ensure compliance with statute and regulations."
* Self-employed individuals and some other types of workers for whom SDI coverage is not required can choose to participate in the Disability Insurance Elective Coverage program. This program is funded by "employer-paid premiums calculated using a net profit formula." EDD provides "administrative oversight" of this program.

Two types of benefits are available under SDI: Disability Insurance and Paid Family Leave.
* Disability Insurance benefits "are payable when a covered employee suffers a wage loss and cannot work due to pregnancy or illness/injury not related to his/her job." Benefits are calculated to replace about 55% of a worker’s earnings, and (in 2008) range from $50 to $917 per week for a maximum of 52 weeks. For Disability Insurance, in calendar year 2007 EDD processed 742,976 claims and paid over $3.7 billion in benefitsEDD. [http://www.edd.ca.gov/About_EDD/Quick_Statistics.htm Quick statistics.] Retrieved July 21, 2008.] .
* Paid Family Leave benefits "are available to persons who take time off work to care for a seriously ill child, spouse, parent, or domestic partner or to bond with a new minor child." In 2002, California was the first state to pass a law requiring the Paid Family Leave program, and as of mid-2008, the only other states that had passed laws to offer paid family leave benefits were Washington and New Jersey [Lu, Adrienne. [http://www.philly.com/philly/news/20080503_Paid_family_leave_now_law_in_N_J_.html Paid family leave now law in N.J.] "Philadelphia Inquirer", May 3, 2008. Retrieved July 21, 2008.] . The program "offers up to 6 weeks of benefits in a 12-month period" and "provides benefits of approximately 55 percent of lost wages," ranging "from a minimum of $50 to a maximum of $917 per week for up to six weeks" as of 2008 [EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de2511.pdf The time you need for times like these. Paid Family Leave insurance program.] January 2008. Retrieved July 21, 2008.] . For Paid Family Leave, in calendar year 2007 EDD processed 183,347 claims and paid over $410 million in benefits.

Nonindustrial Disability Insurance (NDI)

The Disability Insurance Branch administers the NDI program for state employees who are not covered by SDI. The NDI program provides disability insurance benefits similar to SDI's disability insurance benefits, but NDI benefits are payable by the California State Controller for only a maximum of 182 days.

Information Technology Branch

The "Information Technology Branch" is responsible for automation planning, policy, development, maintenance, support, operations, and oversight of automation systems within the Department. The branch provides data processing technical support and services for one of the largest information technology environments in State government, including the planning, development, maintenance, installation, and support of telecommunications systems such as cabling, voice, and data equipment.

Program Review Branch

The "Program Review Branch" performs review oversight and technical assistance functions for the Director, EDD's executive staff, and state and local EDD program management. Its services include:
* assessing the effectiveness and efficiency of programs, operations, and systems;
* performing compliance oversight to ensure that EDD programs are in accordance with federal and state laws and regulations; and
* serving as an advocate to improve services for Migrant and Seasonal Farmworkers.The Branch is responsible for fraud detection and deterrence "through sound internal control structures, internal and external audits, risk assessments, detailed Quality Control reviews, and criminal investigations" [EDD. [http://www.edd.ca.gov/pdf_pub_ctr/report2007.pdf Annual report. Fraud deterrence and detection activities. A report to the California Legislature. Thirteenth report.] June 2007. Retrieved July 21, 2008.] .

Public Affairs Branch

The "Public Affairs Branch" provides outreach, marketing services, communications, and training that support EDD programs and the employment of special targeted populations. The branch is composed of the Marketing and Constituent Services Office and the Communications Office.

Tax Branch

The "Tax Branch", one of the largest tax collection agencies in the nation, handles all administrative, education, customer service, and enforcement functions for the audit and collection of Unemployment Insurance Tax, Employment Training Tax, State Disability Insurance Tax, and Personal Income Tax withholding. Unemployment Insurance Tax and Employment Training Tax are employer contributions, while State Disability Insurance Tax and Personal Income Tax are withheld from employees' wages. [EDD. [http://www.edd.ca.gov/Payroll_Taxes/What_Are_State_Payroll_Taxes.htm What are state payroll taxes?] Retrieved July 21, 2008.] Each year, EDD collects more than $31 billion in payroll taxes, including nearly $25 billion in Personal Income Tax, processes more than 30 million employer payroll tax documents and remittances, and maintains records for more than 17 million workers. The branch offers a variety of payroll seminars and workshops and provides one-on-one services to employers to help them meet their tax obligations.

Unemployment Insurance Branch

Established more than 60 years ago, the Unemployment Insurance program provides benefits to individuals who have lost their jobs through no fault of their own, are actively seeking work, are able to work, and willing to accept employment. Each year, EDD pays out more than $6.2 billion in Unemployment Insurance benefits and receives and processes more than 2.4 million new claims. California's Unemployment Insurance program is the largest in the United States "in terms of participating employers, revenue collected, and benefits paid"EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de4525.pdf Unemployment Insurance Program business plan 2007-2012.] November 2007. Retrieved July 21, 2008.] . The program is funded by mandated employer contributions "on up to $7,000 in wages paid to each worker," with the tax rate increasing if more former employees make claims on the employer's account [EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de8714b.pdf Fact sheet. Unemployment Insurance Program.] May 2008. Retrieved July 21, 2008.] .

Besides regular unemployment insurance, additional services provided under the Unemployment Insurance program include Work Sharing, Disaster Unemployment Assistance, and Trade Adjustment Assistance. Work Sharing "allows for the payment of Unemployment Insurance benefits to employees of participating employers whose wages and hours have been reduced"; a person can be eligible for Disaster Unemployment Assistance if the President declares a disaster in his/her area; and Trade Adjustment Assistance "provides special federally funded assistance for workers who lose their jobs or whose hours of work and wages are reduced as the result of trade with other countries" [EDD. [http://www.edd.ca.gov/Unemployment/Types_of_Claims.htm Types of claims.] Retrieved July 21, 2008.] .

Workforce Services Branch

The "Workforce Services Branch" includes several major programs.

The "Job Service program" (also known as Employment Service) offers services at hundreds of locations statewide and connects one million job seekers with employers each year. One of the largest public employment services in the world, it is authorized by the federal Wagner-Peyser Act as amended by the Workforce Investment Act of 1998. Job seeker services include job referral, job search workshops, placement services, and special assistance to individuals who are experiencing difficulty in finding work. Services to employers include matching job openings with qualified candidates and specialized recruitment campaigns. Components of the Job Service program include:
* CalJOBSUnicode|℠, EDD's Internet-based job and résumé listing system, which lists thousands of job openings and the largest pool of job seekers in California.
* Several statewide workforce preparation programs and initiatives that focus on preparing adults and youth for the labor force and building the State's economy.
* Distribution of more than $400 million annually in federal funds statewide to provide training services for adults, dislocated workers, and youth. This includes the Employment Training Network, "a multi-faceted, full-service program... to assist in the development and implementation of effective Workforce Investment Act (WIA) projects and programs." [EDD. [http://www.edd.ca.gov/Jobs_and_Training/Employment_Training_Network.htm Employment Training Network (ETN) overview.] Retrieved July 20, 2008.]
* Workforce investment services through comprehensive One-Stop Career Centers (coordinated by the federal Employment and Training Administration [U.S. Department of Labor. [http://www.dol.gov/dol/topic/training/onestop.htm One-Stop Career Centers.] Retrieved July 20, 2008.] ) that provide access to a full range of services pertaining to educational activities, employer services, and referrals to other appropriate social services.

The Branch administers the federal Worker Adjustment and Retraining Notification Act (WARN Act) and the California law that expands upon the WARN ActEDD. [http://www.edd.ca.gov/Jobs_and_Training/Layoff_Services_WARN.htm Worker Adjustment and Retraining Notification (WARN) information for employers.] Retrieved July 20, 2008.] . For example, an establishment that will incur a "plant closing, layoff or relocation of 50 or more employees within a 30-day period" must notify EDD.

Within the Branch, the "Labor Market Information Division" collects, analyzes, and publishes (e.g., on its Web site) thousands of statistics on agricultural and nonagricultural industrial employment; occupational duties, skills, wages, and staffing patterns; and labor force statistics and characteristics. The Division provides employment and unemployment data; economic development and planning information; industry and occupational characteristics, trends, and wage information; and social and demographic information [EDD. [http://www.edd.ca.gov/pdf_pub_ctr/de8714m.pdf Fact sheet. Labor market information.] May 2006. Retrieved July 20, 2008.] .

The Branch also includes the "Governor's Committee on Employment of People with Disabilities". The purposes of the Committee are to "increase the number of people with disabilities in the California workforce" and "to ensure improved employment opportunities for people with disabilities." [EDD. [http://www.edd.ca.gov/Jobs_and_Training/GC_on_Employment_of_People_with_Disabilities.htm Governor’s Committee on Employment of People with Disabilities.] Retrieved July 20, 2008.]


ee also

* Civil rights
* Civil Rights Act (disambiguation page)
* Department of Fair Employment and Housing
* Equal Employment Opportunity Commission
* Government of California
* Workforce Investment Board

External links

* [http://www.cuiab.ca.gov California Unemployment Insurance Appeals Board home page]
* [http://www.caljobs.ca.gov/ CalJOBSUnicode|℠, California's Internet system for linking employer job listings and job seeker résumés]
* [http://www.edd.ca.gov/ Employment Development Department home page]
* [http://www.labormarketinfo.edd.ca.gov LaborMarketInfo home page]

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