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Newsom Appoints New Leader to Beleaguered Employment Department

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Backlogged payments, busy phone lines, unanswered emails and reports of ever-growing fraudulent claims — it's been a rocky time for the California Employment Development Department.

Now, however, Gov. Gavin Newsom is appointing a new lead to the state's unemployment office to right the ship.

Rita Saenz will lead the EDD as director, Newsom announced Wednesday.

Saenz, 71, was a consultant at Saenz and Associates from 2016 to 2020, and she was previously a director of California government affairs at Xerox. She's served in various other roles in the private sector. She also served as director of the California Department of Social Services from 1999 to 2003.

The appointment requires state Senate confirmation to move forward. The position's compensation is $204,864.

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“With more than 40 years of experience in state government and the private sector, Rita Saenz is well-prepared to lead EDD at what is sure to be one of the most difficult moments in the department’s history,” Newsom said in a statement. "With Rita at the helm, we stand ready to ensure payments to Californians who are in desperate need of financial support while simultaneously stopping fraud in our systems and holding people who have committed fraud accountable.”

Since the onset of the pandemic, roughly 18.1 million claims for various unemployment benefits have been processed by EDD, which total $110 billion in benefits paid, according to the department.

Saenz is taking the reins of EDD after the departure of director Sharon Hilliard, who Newsom appointed to lead the department in February.

Hilliard served previously as chief deputy director at the Employment Development Department since 2013, and held multiple positions since 1983, including deputy director of the tax branch.

Hilliard departed amid outcry from lawmakers after the state legislative auditor uncovered a massive backlog of 600,000 cases at EDD, as well as fraud and privacy concerns for taxpayers. EDD announced hiring as many as 3,000 new staffers to deal with those problems.

“I am extremely grateful to Sharon Hilliard and congratulate her on her retirement after 37 years of service at EDD,” Newsom said. “Sharon is a dedicated public servant and we owe her our gratitude for leading the Department through the pandemic.”

Joe Fitzgerald Rodriguez (@FitztheReporter)

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