Can the EDD Place You Under Arrest or in Jail?

On: June 8, 2018

The short answer is yes.

The following is from the EDD web site:

The Employment Development Department (EDD) administers the Unemployment Insurance (UI), Disability Insurance (DI), the Paid Family Leave (PFL) program, and Employment Tax programs for the State of California. To support these programs and the payment of benefits, the EDD is responsible for collecting the associated employment payroll taxes.

At the EDD, we are dedicated to detecting, deterring, and preventing any occurrence of fraud in these programs. We use a variety of electronic monitoring, data-matching, and cutting edge technology measures to detect fraudulent activity. Cases involving the fraudulent receipt of benefit payments or evasion of payroll tax reporting obligations are actively pursued and those responsible are prosecuted to the fullest extent of the law.

While jail terms are rare, the EDD is intent on preventing this sort of activity and is willing make an example of those who defraud the EDD. This is not the case with pure negligence or failure to file and pay. The intent to defraud is what the EDD is after.