This is an important post. Please read it carefully.
Current federal law that has existed since the beginning of the extension programs mandates:
If you are collecting benfits on a federal extension AND your benefits year ends (the is the original date your claim expired, lets used 2/11
and it is not 2/12 and you are receiving these benefits
EDD cannot pay you any further benefits (nor will the automated system spit out claim forms or make payments) UNTIL that new claim is filed.
Therefore, EDD files the claim form the most part if – during the parent claim and the weeks claimed on the extension, the claimant reported no wages and we see no wages in the new base period of the new claim that will be filed.
EDD will automatically file that new claim so that we can get a notice of invalid claim (because there are no wages to base a new claim on and therefore one cannot be established)
EDD needs that justification in order to alert the automated system to continue to pay you on the extension and meet the federal mandate that says we must do so.
Translated that says to the FED – yes, CA is going to continue to pay this claimant because he is not qualified to collect on his own because he has not been working and there are no new wages to file a new claim on.
You with me so far????
Ok, when that claim is filed, the automated system generates a notice to the claimant that says, you cannot collect on this new claim.
Then the poopola hits the fan and the outrage begins and the phones ring off the hook about what SOB’s we are, we filed a claim without their consent, what am I gonna do without money etc.
Why do you get that notice? Because that is the way it is suppose to be because a regular claim was filed and that is what the automated system is suppose to send out in normal times.
Gee, I can hear it now. EDD should not send the notices, EDD should have changed the automation, etc etc etc.
But there is a tiny box somewhere on that form that says “This does not effect your benefits on the extension” that no one ever sees.
Yes, it would be oh so wonderful, if the automated system could generate a reasonable explanation BUT The fed did not give the states money to change ALL of its automation and letters for normal times and readjust to the times of federal extensions because the cost would have been out of this world and the money the fed gives EDD – is not just free money – they tell us exactly what to do with it, where to use, what to adjust and what they want us to do with it.
The fed says update automatin to get the claimants paid — bottom line, we have got to get these people paid.
So, staff in all states, deal with the fallout from outraged and unsympathetic claimants who really believe that we just sit there making all these outlandish decision to cause them individual pain because we are useless, staff.
EDD accounts to the fed for every dime paid out and it is like bookkeeping, auditing and all that great mathematical stuff. It has to balance folks.
So, when the fed audits the EDD’s nation wide, they can see, that ok, this claimant was kept on the extension because he could not qualify on his own for a regular claim because he had not worked and earned wages.
The second kind of a “new claim filed while on an extension is:
When the screen shows wages earned in the base period for the new filing in 02/12 and the claimant also shows wages reported on his claim form.
When that happens, you will get a letter from EDD telling you to file a new claim and no further benefits can be paid.
Poopla scene #2 just hit the fan. Outrage, anger, you stupid ee, on an on and on. The calls, the emails, the letters, the messages.
Claimants are told flat out, go on line and file the claim because no further benefits will be paid until you do because the automated system will NOT allow payments on an extension past the expiration of the parent claim.
People refuse, argue, claim we are violating their rights, They do call the governors off and everyone else till they get a rep that says, let me break it down for you, please file the claim
and they do.
Why is it done this way? Because the base period shows wages and because at that point, EDD does not know the name of the last employer etc. So, it then becomes the claimants responsibility to go on line or call and file that claim.
You all with me so far??? Simple to understand?
Ok, to back track.
Two types of new claims have been filed.
One EDD filed because there are no new wages and that claim is not valid because of no wages, so we have cleared the flags, got the claim filed and that person is back in process to be paid – unbeknownst to him – he is ok and that is our goal – get the claimant paid.
The second one the claimant had to file because wages showed on screen.
Ok, claimant files the claim.
Because there are wages there the claim is going to be valid and it is going to show a weekly benefit of say 250 a week.
Automated system does what it is suppose to do.
It sends and award notice, a hand book and claim forms
It sends a notice that says to the claimants in essence:
Ok, you have filed two claims back to back
One in 02/11 One in 02/12
California Unemployment Insurance Code requires that anytime two claims are filed back to back, the claimant must provide EDD with proof of wages earned in order to clear the wages test.
This means, yes EDD can see some wages on screen and some we cannot because they are not in the base period showing on screen but they are in the “lag period” (the life of the old claim) so we are requesting proof of wages.
Poopla scene # three has just hit the fan. The screaming and yelling phone calls, the anger, fear, the threats to EDD staff because we are trying to steal their money.
EDD simply wants to know, did you work and earn wages during this period, yes or no, if you did, send us proof of wages and we can clear the test and get you paid.
This is important, read this one:
IF YOU DID NOT EARN WAGES – tell us that, send us a letter, better yet send us an email and tell us NO I DID not work.That wonderful automated system will then spit out another letter that tells you you are not eligible for these benefits on this claim because you could not pass the wages test and the claim is INVALID. Also on this form is a box with an x in it that says, this does not effect your claim for the extension benefits.
Bingo, we have the justification for keeping you on the extension and paying you.
If you DID WORK AND EARN ENOUGH WAGES to pass the wage test, we will immediately stop paying you on the extension and pay you on the new claim (more about this later).
This is federal law folks, passed by Congress, who controls and determines the fate of the extensions.
EDD just wants to continue to pay you what you are eligible to receive but we have to adhere to the federal law in order to do that.
At this point, I am sure this is as clear as mud to everyone.
But this is the way it is. It is not personal. It is not based on “getting you” . You can read all the articles out there and it does not explain this to you and this is what is done on every extension ****and there is more*********
Ok, let’s back up.
So far, we have a parent claim filed in 2/2011 and you ran out of benefits in 26 weeks but the parent claim did not expire till 2/2012 and the new claim had to be filed in order to continue to pay you on the extension or on the new claim filed in 2/2012.
Ok, the struggle is over, you have called etc and now you understand and your happily collecting your extension benefits and low and behold, you have to go through this hassle again.
THIS IS IMPORTANT – READ THIS
If you stayed on the extension because you filed a new claim and were not eligible, then EDD will file a new claim for you EVERYTIME the quarter changes for the base period (every three months at qtr change) to make sure you are not eligible for benefits on your own.
That means, the new claim you filed in 2/2012 – another new claim will be filed in April 2012 because that is qtr change and the base period will drop the last qtr of 2010 and pick up the last qtr of 2011 which means in April the base period will be all wages earned in 2011 from Jan 1 2011 to Dec 30 2011.
Same scenario plays out.
So, folks, as long as your on an extension, this takes place because the fed wants to make sure they are not paying you federal monies if you are eligible to collect a regular claim based on your wages earned.
This is why you cannot get through the phone system.
If you think that it takes only a minute to explain this to a stressed out claimant who is sure that the rep is stealing their funds that they worked for and that EDD is worthless and they are going to sue EDD and they have rights etc etc etc. People are so angry and upset and stress that the rep cannot talk, I kid you not.
It may take 15 minutes to get the information from the claimant asking did you work or telling the claimant to please go on line and file the claim so that we can substantiate paying you on the extension.
If you understood everything that I just spent 45 minutes typing in the first read, I congratulate you because it takes a long time to explain this on email to a claimant or on the telephone to a claim. Keep in mind, they are talking and we are trying to tell them what it is that needs to be done so we CAN keep paying them.
This is important information that you will not find anywhere else. It is on the website but the public cannot translate it into the plain language I just posted.