California Agency Pays Unemployment Benefits To Workers Terminated for Misconduct
A California agency erroneously paid out $1.3 million in unemployment benefits to workers that had been fired for misconduct - a stunning 25% of the unemployment benefits paid by the agency in the year. An outside auditor found that the agency repeatedly failed to provide adequate documentation regarding the terminated employees, and failed to respond within deadlines set by the California Employment Development Department (EDD). One worker that received benefits had been fired for refusing to cooperate with police after being involved in a drunk driving hit and run. Another had sold drugs and had been involved with a gang.
This example of phenomenal waste provides a useful lesson for California employers. A discharge for misconduct disqualifies an employee from receiving unemployment compensation benefits from the EDD. "Misconduct" is conduct that evinces willful or wanton disregard of an employer's interest and involves deliberate violations or disregard of reasonable rules of conduct set by the employer.
