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Federal Strike Team Investigates California's Unemployment Fraud Crisis

2/18/2026

Summary

Story summary

The U.S. Department of Labor will deploy a federal strike team to investigate the California Employment Development Department (EDD) after reports of pandemic-era unemployment fraud.
Lori Chavez-DeRemer, U.S. Labor Secretary, criticized the previous administration for neglecting these issues.
A former EDD employee was sentenced for filing fraudulent unemployment claims.
California owes $20 billion in federal loans for unemployment claims, which raises payroll taxes for employers.

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Story summary

The U.S. Department of Labor will deploy a federal strike team to investigate the California Employment Development Department (EDD) after reports of pandemic-era unemployment fraud.
Lori Chavez-DeRemer, U.S. Labor Secretary, criticized the previous administration for neglecting these issues.
A former EDD employee was sentenced for filing fraudulent unemployment claims.
California owes $20 billion in federal loans for unemployment claims, which raises payroll taxes for employers.