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EDD sees suspicious surge in unemployment claims

An additional 77,000 claims for independent contractors has raised concerns about a return of widespread fraud.

SACRAMENTO, Calif. — California reported a significant surge in unemployment claims last week for independent contractors that has raised concerns about a return of widespread fraud that already cost the state hundreds of millions of dollars. 

The U.S. Labor Department says California received an additional 77,000 claims last week compared with a week earlier under a program designed to help gig workers and the self-employed affected by the coronavirus outbreak. The number accounted for more than a quarter of all such claims submitted nationally. 

The state Employment Development Department says it expected the increase after Congress approved an extension of benefits in December.

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