California Labor Secretary Julie Su, President Biden’s reported choice to serve as undersecretary in the United States Department of Labor, may face a Senate scrutiny regarding the handling of state unemployment insurance claims during the pandemic of the coronavirus.
The Biden government is expected to announce Su’s appointment this week, and the former civil rights lawyer has already accepted the role, Bloomberg reported. Biden has promised to raise the federal minimum wage to $ 15 and Su is a long-standing advocate for workers’ rights, including raising wages.
However, reports that a state agency under Su’s jurisdiction mistakenly paid billions in false unemployment claims could complicate his candidacy. A state audit revealed that California has paid at least $ 11.4 billion in fraudulent unemployment benefits since the coronavirus pandemic began last March, while about $ 20 billion in claims remains under review.
“There is no way to soften the reality,” Su said during a news conference on Monday. “California does not have sufficient security measures in place to prevent this level of fraud and criminals have taken advantage of the situation.”
Su said the California Department of Employment Development, the agency responsible for evaluating unemployment insurance claims, was “overwhelmed” by the volume of claims during the pandemic, the Los Angeles Times reported. She accused “international and national criminal networks” of exploiting the system through identity theft and other illegal means.
Su also blamed the Trump administration for the department’s problems, arguing that the fraudulent claims were largely made through a federal program for which the government did not provide adequate support.
“All states are struggling,” added Su. “What we think would have been useful if the federal government at the time had developed a coherent, coordinated and proactive approach to fraud, not just investigating cases after they happen.”
In addition to complaints of fraud, state officials questioned the readiness of the Su-led Department of Employment Development to deal with complaints in the event of a crisis that led to an economic recession.
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“While it was unreasonable to expect a perfect response to such a historic event, EDD’s inefficient processes and lack of advanced planning led to significant delays in payment of [unemployment insurance] states, “California State Auditor Elaine Howle wrote in a report, according to the Times.
White House and Su representatives did not immediately respond to a request for comment.
With Democrats in control of the Senate, even Republican opposition to Su’s nomination would hardly hurt his candidacy. Nominees can be confirmed by a simple majority of votes.