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EDD says paid family leave claims rose after system transition; department hiring to address backlog
Summary
EDD officials told the subcommittee a systems transition and rising claims briefly slowed paid family leave (PFL) processing in late 2024, that the department has hired staff and is simplifying forms, and that PFL usage has grown substantially since the program began.
Officials from the Employment Development Department told the Assembly Budget Subcommittee No. 5 that paid family leave (PFL) processing slowed during a systems transition but that EDD has redirected staff, begun new hires and will simplify forms to improve customer experience.
Gracia Staten, deputy director of the disability insurance branch (which includes PFL), said internal changes — moving from a manual process into a single, integrated platform used by State Disability Insurance — and increased duplicate applications caused a slowdown late in 2024. Staten said EDD redirected resources, required overtime and weekend work and has begun hiring to expand capacity; the department reported roughly 404 hires in recent months for unemployment insurance and related processing work.
Staten described ongoing work to expand automation and to simplify claimant-facing forms and status tools with the department’s IT branch. EDD added that the paid family leave program provides up to eight weeks of wage replacement for workers caring for family, bonding with a new child, or participating in qualifying military events; disability insurance can provide up to 52 weeks in certain circumstances. The department said the program covers more than 18 million workers through payroll contributions and that PFL claims have increased about 205 percent overall since the program’s inception.
LAO staff said the department’s platform and process changes leave EDD in a better position than during the pandemic, though they cautioned that unforeseen surges remain possible. During discussion committee members asked whether outreach or greater public awareness accounts for increased PFL use; EDD said outreach and advertising have increased and that outreach plus service improvements are underway.
Public commenters included worker-advocacy and union voices who asked the subcommittee to support budget requests to expand PFL eligibility (for example, allowing “chosen family” to be covered) and to fund outreach. Sala Steiger of Legal Aid at Work urged support for PFL coverage of chosen family, calling it an equity measure. Union representatives testified in favor of expanding definitions and increasing outreach funding to improve equity for LGBTQ and immigrant communities.
Ending: The subcommittee heard that EDD has taken immediate operational steps to address PFL delays, is hiring additional staff, and plans plain-language improvements to the online claim experience. Committee members asked for additional data; EDD agreed to provide claim-volume and processing metrics to legislative staff.
