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EDD reports surge in paid family leave claims, outlines fixes; says it is prepared for a possible federal unemployment influx
Summary
At a budget subcommittee hearing, the Employment Development Department (EDD) described system changes and staffing steps to address a rise in Paid Family Leave (PFL) claims, outlined outreach limits and said it has a recession plan and a command center to monitor unemployment trends.
Department of Employment Development officials told Assembly Budget Subcommittee 5 that they have seen increased demand for Paid Family Leave (PFL) and that recent internal IT transitions created temporary slowdowns even as the department is hiring staff and automating processes to improve claims processing.
Gracia Staten, deputy director of the Disability Insurance Branch, said the department transitioned to a single, integrated platform for disability insurance and paid family leave, a move that slowed processing late in 2024 while staff adapted to the new system and duplicate applications rose. Staten said the department redirected resources, added overtime and is in the process of hiring to address the backlog.
Why this matters: Paid Family Leave provides wage replacement for workers caring for family members or bonding with a new child. The program is financed through payroll contributions and touches millions of workers — the EDD said the combined Disability Insurance and Paid Family Leave programs serve more than 18 million workers and families. The committee also discussed the department’s preparedness should federal conditions or an employment shock lead to a surge in unemployment claims.
Details from the hearing
- Causes and fixes for PFL delays: Staten said the slowdown stemmed from an internal change to consolidate multiple manual systems into one digital interface used by staff; the department has started staff hires (half the group already onboard, the remainder starting recently) and is expanding automation and plain-language forms to reduce claimant confusion.
- Program scale and access: EDD staff said the PFL program provides up to eight weeks of wage replacement for qualifying care and bonding needs, and that the program has grown substantially since its inception — the PFL program’s usage has increased roughly 205% overall since it began, according to EDD testimony.
- Chosen-family expansion request in public comment: Several advocacy groups and unions urged the Legislature to fund expansion to allow “chosen family” caregivers to access PFL. Sala Steiger of Legal Aid at Work and other groups spoke in support, with UAW and aging advocates saying such a change would increase equity for LGBTQ and immigrant communities.
- Unemployment readiness: EDD officials said they have a detailed recession plan — the department established a command center to track workload, trends, and forecasts and has hired staff in anticipation of increased demand. Nathan Gilly, deputy director for Unemployment Insurance, said the command center monitors volumes and leverages an 11-part recession plan.
Public comment and next steps
No vote or statutory action occurred. Committee members requested additional data on claim counts, use trends and staffing. EDD offered to provide requested data to legislative staff and noted it is continuing iterative updates to forms and the claimant experience through its EDD Next modernization project.
