Workers Comp Zone


Running out of money.

No, I’m not talking about Lehman Brothers, the venerable New York
investment bank that is teetering and “restructuring”. And I’m not talking about Ford or General Motors, both of which have been burning through cash like there was no tomorrow.

I’m talking about the California unemployment fund.

At current rates, the fund will be almost $2 billion in the red by the end of 2009.

Meanwhile, California’s unemployment insurance fund has a big backlog in processing unemployment eligibility appeals.

The situation is deteriorating in these tough economic times.

Add this to the list of problems that need to be addressed by the legislature.

You can see a good analysis by Associated Press journalist Steve Lawrence that appeared in the Sacramento Bee by clicking here:

This is of more than passing interest for some disabled workers. I’ve had many clients who were “laid off” after their injures. While the layoff may have been discriminatory under Labor Code Section 132A or under the disability discrimination provisions of California’s Fair Employment and Housing Act, 132A claims and FEHA litigation are time consuming.

As a practical matter, many individuals in those circumstances will seek unemployment benefits. Troubles at the fund could represent another instance in which the social safety net becomes shredded.

I’ll continue to cover this story as it unfolds.

Julius Young
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Category: Political developments