Employment Development Department
Encyclopedia
The Employment Development Department (EDD) is part of the Labor and Workforce Development Agency
California Labor and Workforce Development Agency
The California Labor and Workforce Development Agency is a cabinet-level California state agency that coordinates workforce programs by overseeing seven major departments dealing with benefit administration, enforcement of California labor laws, appellate functions related to employee benefits,...

 of the executive branch of the State of California
California executive branch
The California executive branch of the state of California includes many agencies including those listed below.-Governor:Agencies under the direction of a secretary that report directly to the Governor are cabinet-level agencies, to which other agencies are subordinate to:*Governor**Office of the...

. EDD offers a variety of services to millions of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

ns under the Job Service, Unemployment Insurance, Disability Insurance
Disability insurance
Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...

, Workforce Investment
Workforce Investment Board
Workforce Investment Boards are regional entities created to implement the Workforce Investment Act of 1998 in the United States, the Federated States of Micronesia, the Republic of Palau and the Republic of the Marshall Islands....

, and Labor Market Information
Labour economics
Labor economics seeks to understand the functioning and dynamics of the market for labor. Labor markets function through the interaction of workers and employers...

 programs. As California's largest tax collection agency, EDD also handles the audit
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...

 and collection of payroll tax
Payroll tax
Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax...

es and maintains employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

 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" and an annual budget of nearly $12 billion. 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.

History

A 1935 California statute
California Statutes
California Statutes are the acts of the California State Legislature as approved according to the California Constitution and collated by the Secretary of State of California....

 created the Department of Employment, which was renamed in 1968 to the Department of Human Resources Development by another statute. 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
Oxnard, California
Oxnard is the 113th largest city in the United States, 19th largest city in California and largest city in Ventura County, California, by way of population. It is located at the western edge of the fertile Oxnard Plain, and is an important agricultural center, with its distinction as the...

; later he killed a policeman before police shot him dead. The office was subsequently moved.

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. 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 Bernick
Michael S. Bernick
Michael S. Bernick served as Director of California’s labor department, the Employment Development Department from 1999 to 2004. He is a practitioner and theorist of job training...

.

The director of EDD between November 2004 and December 2009 was Patrick W. (Pat) Henning. A "self-described progressive, a lifelong Democrat
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

 and labor activist," Henning was appointed to his position by Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...

 governor Arnold Schwarzenegger
Arnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....

.

Director and Director's Office

A new Director has yet to be appointed.

The Director's Office orchestrates the direction of the Department to ensure that programs and services are consistent with the Department's mission statement
Mission statement
A mission statement is a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making...

 and goals. In addition, the Director's Office consists of:

Equal Employment Opportunity Office

The Equal Employment Opportunity Office investigates and resolves discrimination
Discrimination
Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...

 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, contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

s, legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

, 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 Director. 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. 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
California Code of Regulations
California Code of Regulations contains the text of the regulations that have been formally adopted by state agencies. They are reviewed, approved, and made available to the public by the California Office of Administrative Law , and are also filed with the Secretary of State.The CCR consists of...

.

State Disability Insurance (SDI)

The State Disability Insurance
State Disability Insurance
California State Disability Insurance is a statutory state disability program of the State of California for short-term disability income replacement...

 (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
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...

, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

, and Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...

.

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 benefits.
  • 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
    Paid family leave
    Paid family leave refers to leaves taken from work for the purpose of recovering from a serious illness, to care for a seriously ill family member or to bond with a newly born or newly adopted child, during which the leave-taker receives some level of financial support from the employer, an...

     benefits were Washington and New Jersey
    New Jersey
    New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

    . 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. 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
California State Controller
The State Controller is the Chief Financial Officer of the State of California in the United States. The post has broader responsibilities and authority than the California State Treasurer...

 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".

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. 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". 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.

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".

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
Workforce Investment Act of 1998
The Workforce Investment Act of 1998 is a United States federal law passed August 7, 1998.-Purpose:The law was enacted to replace the Job Training Partnership Act and certain other Federal job training law with new workforce investment systems...

. 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:
  • CalJOBS, 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."
  • Workforce investment services through comprehensive One-Stop Career Centers (coordinated by the federal Employment and Training Administration
    Employment and Training Administration
    The mission of the Employment and Training Administration , as part of the U.S. Department of Labor, is to contribute to the more efficient and effective functioning of the U.S. labor market by providing high quality job training, employment, labor market information, and income maintenance...

    ) 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
Worker Adjustment and Retraining Notification Act
The Worker Adjustment and Retraining Notification Act of 1988 is a United States labor law which protects employees, their families, and communities by requiring most employers with 100 or more employees to provide sixty- calendar-day advance notification of plant closings and mass layoffs of...

 (WARN Act) and the California law that expands upon the WARN Act. 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.

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."

See also

  • Civil rights
    Civil rights
    Civil and political rights are a class of rights that protect individuals' freedom from unwarranted infringement by governments and private organizations, and ensure one's ability to participate in the civil and political life of the state without discrimination or repression.Civil rights include...

  • Civil Rights Act (disambiguation)
  • Department of Fair Employment and Housing
    Department of Fair Employment and Housing
    The California Department of Fair Employment and Housing is the state agency charged with the protection of residents from employment, housing and public accommodation discrimination, and hate violence. It is the largest civil rights agency in the United States. It also provides representation to...

  • Equal Employment Opportunity Commission
    Equal Employment Opportunity Commission
    The U.S. Equal Employment Opportunity Commission is an independent federal law enforcement agency that enforces laws against workplace discrimination. The EEOC investigates discrimination complaints based on an individual's race, color, national origin, religion, sex, age, perceived intelligence,...

  • Government of California
    Government of California
    The government of California operates in the context of a democratic republic with three branches of government: the executive branch consisting of the Governor of California and the other elected constitutional officers; the legislative branch consisting of the California State Legislature which...

  • Workforce Investment Board
    Workforce Investment Board
    Workforce Investment Boards are regional entities created to implement the Workforce Investment Act of 1998 in the United States, the Federated States of Micronesia, the Republic of Palau and the Republic of the Marshall Islands....


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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