California Labor Secretary Julie Su, President Biden’s designated choice to serve as deputy secretary of the U.S. Department of Labor, may be scrutinized in the Senate over her handling of unemployment claims in the state during the coronavirus pandemic.
The Biden government is expected to announce Su’s nomination this week, and the former civil rights lawyer has already accepted the role, Bloomberg reports. Biden has pledged to raise the federal minimum wage to $ 15 and Su has been a longtime supporter of workers’ rights, including increased wages.
Reports that a state agency under Su’s jurisdiction accidentally pays out billions of false unemployment claims could complicate her candidacy. A state audit has revealed that California has paid out at least $ 11.4 billion in fraudulent unemployment benefits since the coronavirus pandemic began last March, while claims of about $ 20 billion are still under scrutiny.
“There is no sugar coverage,” Su told a news conference Monday. “California did not have adequate security measures in place to prevent this fraud, and criminals took advantage of the situation.”
Su said the California Department of Employment, the agency responsible for assessing unemployment claims, was “overwhelmed” by the number of requests during the pandemic, the Los Angeles Times reported. She accuses ‘international and national criminal interests’ of exploiting the system through identity theft and other illegal means.
Su also blamed the Trump administration for the department’s issues, arguing that the fraudulent claims were largely filed through a federal program for which the government did not provide adequate support.
“Every state is struggling,” Su added. “What we think would be helpful was that the then federal government developed a coherent and coordinated, proactive approach to fraud, not just investigating cases.”
Apart from the fraud claims, government officials have questioned the Su-led Department of Employment for Development to handle claims in case of a crisis that led to an economic recession.
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‘While it would be unreasonable to expect a flawless response to such a historic event, EDD’s inefficient processes and lack of advanced planning have led to significant delays in the payment of [unemployment insurance] claims, ‘California State Auditor Elaine Howle wrote in a report, according to the Times.
Representatives of the White House and Su did not immediately respond to a request for comment.
While the Democrats are in control of the Senate, it is likely that even a fierce Republican opposition to Su’s appointment will derail her candidacy. Candidates can be confirmed by a simple majority vote.