Employment Development Department


In California, the Employment Development Department is a department of government that provides a variety of services to businesses, workers, and job seekers. The EDD administers several multi-billion dollar benefit programs including the Unemployment Insurance, Disability Insurance, and Paid Family Leave programs that provide financial stability to workers and their communities. The Department also provides critical employment service programs to Californians, collect the state's labor market information and employment data, and serve as one of the nation's largest tax agencies through the collection of payroll taxes.
EDD employees provide many services, including:
The Legislature in 1935 created the Department of Employment as part of the Unemployment Reserves Act. The act was set up to provide "a reserve to assist in protecting the public against the social effects of unemployment." The purpose of the department was to operate a statewide system of employment agencies and distribute the payment of unemployment insurance to eligible unemployed workers.
As part of Governor Reagan's Reorganization Plan of 1968, the Department of Employment was placed under the Human Relations Agency. With the signing of chapter 1460 that same year, the department became the Department of Human Resources Development, which assumed the duties, purposes, responsibility, and jurisdiction of the former department. The name of the department was again changed in 1974, when it became the Employment Development Department.

Organization

Branches

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.
The Disability Insurance Branch has over 1,200 employees organized into a Central Office; a Field Operations Division ; and an Office of the Medical Director. The Branch administers the State Disability Insurance program, 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. 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.
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.
The Policy, Accountability, and Compliance 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:
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".
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, the Communications Office and the Web Content and Usability Group.
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. 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.
The Unemployment Insurance Branch administers the Unemployment Insurance program.
The Workforce Services Branch includes several major programs. The Branch administers the federal Worker Adjustment and Retraining Notification Act and the California law that expands upon the WARN Act.

Programs

Unemployment Insurance program

Unemployment Insurance is a federal-state program created to provide partial wage replacement to unemployed workers while they conduct an active search for new work.
The UI program benefits the individual and the local community. For the most part, UI benefits are spent in the local community, which helps sustain the economic well-being of local businesses. The UI program pays benefits to workers who have lost their job and meet the program's eligibility requirements.

Disability Insurance program

Disability Insurance is a component of the State Disability Insurance program, established in 1946, to provide partial wage replacement benefits to eligible California workers who are unable to work due to a non-work-related illness, injury, or pregnancy. The SDI program covers approximately 18.3 million California workers. California workers through employee payroll deductions pay SDI contributions.

Paid Family Leave

Paid Family Leave provides up to 6 weeks of partial pay to employees who take time off from work to care for a seriously ill family member or to bond with a new child entering the family through birth, adoption, or foster care placement.
The PFL program covers approximately 18.3 million California workers and is funded through mandatory employee payroll deductions. If eligible, you can receive approximately 60 to 70 percent of wages earned 5 to 18 months prior to your claim start date up to six weeks within any 12-month period.

Jobs and training services

The EDD offers a variety of comprehensive services and programs at no cost designed to benefit all job seekers including laid off workers, youth, workers looking for better opportunities, veterans, and individuals with disabilities. Through the America's Job Center of CaliforniaSM locations, the EDD provides individuals with job search and résumé workshops, job fairs and referrals, training, and much more.
Businesses can benefit from using the EDD's state computers, and interview rooms. These services are available at no cost for recruiting and screening of job applicants, employee training, and organization of job fairs and workshops. The EDD also provides labor-market statistics, fidelity bonding, and tax credit incentives. More information about these services is available through CalJOBSSM and at America's Job Center of CaliforniaSM locations throughout the state.

Labor Market Information

The Labor Market Information Division is the official source for California Labor Market Information. The LMID promotes California's economic health by providing information to help people understand California's economy and make informed labor market choices. We collect, analyze, and publish statistical data and reports on California's labor force, industries, occupations, employment projections, wages and other important labor market and economic data. To learn more visit the EDD website.