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EDD Begins Using New Tool to Clear Claims Backlog

The new tool, from Virginia cybersecurity firm ID.me, is expected to reduce the percentage of new claims being flagged for manual processing verification to 10 percent and increase the speed at which new claims are paid.

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After a two-week hiatus, California has resumed initial applications for unemployment benefits, now with a new online identity verification system aimed at speeding up claims processing.

The state Employment Development Department stopped taking new applications Sept. 19 to integrate the system from Virginia cybersecurity firm ID.me. It announced a “soft launch” of the new system last week, in advance of the official launch Monday. It sent email or text messages to about 136,000 people who had signed up to receive notifications during the pause, inviting them to submit a new application for benefits.

“Not everyone who was emailed and texted has returned yet to file a claim,” EDD spokeswoman Loree Levy said. “We will be assessing progress today and combining it with the results of our soft launch over the weekend and sharing that information.”  

She said EDD “began using ID.me to verify identity with groups of applicants on the email waiting list, and the tool performed well in each of the last four days over the weekend. On Monday, the ID.me was among a group of consumer web applications that suffered delayed response times for a period of 30 minutes. At this time, we believe the issue was unrelated to the successful installation of the tool with EDD in California, which has otherwise been functioning well so far.”

The ID.me system is aimed at reducing EDD’s burgeoning backlog of claims. As of Sept. 20, about 600,000 Californians had been waiting for more than three weeks to have their initial unemployment claim processed. An additional 1 million people had received payments but subsequently had them halted for eligibility certification or other issues, according to a report issued by a “strike team” appointed by Gov. Gavin Newsom to look into EDD’s problems.

The team identified EDD’s method of manually verifying identities as one of the key bottlenecks. About 40% of new claims were being flagged for manual processing, often because the applicant’s name did not exactly match what was listed for Social Security or in other databases. That delayed a benefit determination for at least three weeks. ID.me is expected to reduce the percentage of new claims being flagged for manual processing verification to 10% and increase the speed at which new claims are paid.

All new applicants will have to first create or sign into an EDD UI Online account. Then, they will have to set up an account with ID.me. About one out of four users will already have an ID.me account from previous interactions with other government agencies or businesses, according to ID.me chief executive Blake Hall.

Next, they will have to secure the ID.me account by entering a passcode sent to their mobile phone or computer. Then, they will have to upload or take pictures of their driver’s license or other government ID, or they can verify their identity by answering questions about their credit history. Once their identity is verified, they can continue with their claim.

Most people will use a mobile phone equipped with a camera, or they can use a computer to have a video chat with an ID.me representative and hold up their documents for inspection. Those who cannot verify their identity through ID.me when applying online will have to file a claim by phone, fax or mail. More details are available online.

People who are unwilling or unable to provide personal information to a third-party company for identity verification and file by mail may not be able to use EDD’s online portal to certify for continuing benefits every two weeks, as they could before ID.me was implemented, said Daniela Urban, executive director of the Center for Workers' Rights, a nonprofit in Sacramento.

Levy said the EDD encourages claimants “who apply via paper or phone to register in UI Online to help manage and monitor their claim, including certifying for benefits.”

California is the fifth and by far the largest state to use ID.me to verify the identity of unemployment applicants; most of the other states are using it in a more limited capacity, according to spokespeople for employment departments. In Florida, it’s for claimants who are locked out of their online accounts because of suspected fraud. In Arizona, it’s being used to confirm the identities of individuals in a specific subset of existing claims to ensure they were not filed fraudulently with information obtained from nationwide data breaches. In Nevada, it’s optional for filers. Georgia’s Labor Department did not return a request for comment.

In those four states combined, ID.me has verified more than 41,000 people who had filed for unemployment. By comparison, during the week ending Sept. 19 alone, California received 137,016 claims for regular state unemployment or pandemic unemployment compensation.

(c)2020 the San Francisco Chronicle. Distributed by Tribune Content Agency, LLC.