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Nina Chan

What seems to be the connection between high minimum wage and unemployment? Trying to understand California EDD eligibility

Lost my job at a small restaurant last month after they cut half the staff, and my manager straight up told us the new minimum wage increases made it impossible to keep everyone on. So now I'm sitting here filing for California EDD benefits and wondering if this is actually a thing or if they were just making excuses. Like is there actually a connection between high minimum wage and unemployment rates, and does it affect how EDD looks at my claim? I worked there almost two years, got laid off with no warning, and I'm trying to figure out if my situation is straightforward or if EDD is going to dig into why they let me go. My weekly earnings were around $620 before taxes. Already applied through myEDD and the claim is processing but I have zero idea what to expect next or how long this takes.

Heads-up on the minimum wage connection question — that's more of an economics debate than something EDD actually factors into your individual claim. What matters to EDD is whether you were laid off through no fault of your own, which sounds like exactly your situation. Layoffs for business reasons, including a restaurant cutting staff because costs went up, are pretty much the definition of no-fault separation. Your claim should be treated as a standard layoff. The minimum wage debate doesn't enter the picture on EDD's end at all.

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Nina Chan

Author

That's a relief honestly. I was worried they'd somehow hold it against me that my employer cited costs as the reason.

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EDD cares about your side of the story not your employer's economics lecture. Laid off is laid off in their system.

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DE 429Z notice showing up in your mailbox is the first real signal — it'll list your weekly benefit amount once EDD finishes processing your application. Mine showed up about two weeks after I applied and that's when I knew things were actually moving. While you're waiting you should be getting yourself registered in CalJOBS and posting a resume there too. EDD sends a notice (DE 8405) telling you to do it within 21 days, and skipping it can hold up your payments, so don't let that slip. The economics angle of your question is interesting but EDD just sees a laid-off worker, not a victim of wage policy.

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Nina Chan

Author

I had no idea about the CalJOBS registration requirement. I haven't received any notices yet, how will I know when to do it?

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The DE 8405 spells out your deadline. Once you get that in the mail, the clock starts. 21 days from the date on the notice. Register at caljobs.ca.gov and make sure your resume is actually posted, not just created.

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Don't sit around waiting for the notice either. Going ahead and registering in CalJOBS right away never hurts and means one less thing to scramble on later.

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Minimum wage hikes and restaurant layoffs — there's definitely a pattern there in terms of real life even if EDD doesn't officially care about it. I got laid off from a cafe two years ago for the same reason, same speech from the owner about margins and labor costs. Filed with California EDD, got approved, collected for about four months before finding something new. The process took roughly three weeks from application to first payment for me. What actually slowed things down for people I know was not certifying on time or missing the CalJOBS step.

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Nina Chan

Author

Four months is kind of what I'm bracing for. Did you have any issues with adjudication or was it clean the whole way?

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Mine went through without a phone interview since it was a clear layoff. The ones who got stuck in adjudication were people where the reason for separation was fuzzy, like a mutual agreement situation or someone who quit and was trying to claim it was forced.

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This is basically my experience too. Clear layoffs move pretty fast through the system. It's the messy separations that drag on.

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Does the minimum wage connection affect what your weekly benefit amount ends up being? Like if you were earning minimum wage does that cap you at a lower payout?

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Your weekly benefit amount is calculated from your highest-earning quarter in a specific base period, not from whether you were earning minimum wage or above it. The range runs from $40 to $450 a week in California. Someone who earned minimum wage for a full year might still land at the max if their hours were high enough. You can plug your numbers into EDD's Unemployment Benefit Calculator on their site to get an estimate before your DE 429Z arrives.

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Oh I didn't realize there was a calculator for that. That's actually really helpful, thanks.

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Had a layoff last spring from a grocery distribution center and the same minimum wage argument came up — management blamed the state increases for the restructuring. Used Claimyr (claimyr.com) to get through to a live EDD agent because my claim had been sitting at Pending for almost three weeks with no explanation. The agent pulled up my file and told me one of my employer's quarterly wage records hadn't been matched yet, which was the holdup, not anything I did wrong. Here's the video they put out about reaching a live person at EDD if that's useful: https://youtu.be/JmuwXR7HA10

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Nina Chan

Author

Three weeks pending with no explanation sounds like my nightmare. Good to know there's a way to actually get someone on the phone if that happens to me.

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Wage record mismatches slow down so many claims. EDD doesn't tell you that's the problem, you just sit there watching Pending and assuming the worst.

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Real question here — my situation is a little different. I was making just above minimum wage at a retail job, got let go in what they called a 'position elimination,' and my Claim History in UI Online is showing every week as Pending. It's been nearly four weeks. Is that just the standard new claim processing lag or should I be worried something is flagged?

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Four weeks of Pending without a Notice of Determination or a DE 4800 phone interview notice is worth following up on. Sometimes wage records take longer to verify, sometimes there's an identity step needed. The Claim History screen doesn't tell you which. Phone EDD at 1-800-300-5616 between 8 and 5 on a weekday to find out what's actually open on your claim.

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I've been trying that number and can't get through. It either rings forever or hangs up. Any other way to reach someone?

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The live chat in UI Online actually works sometimes — it's under the Help button, Monday through Friday 9 to 2. Slower during the week but I've had luck there when the phones were impossible.

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Something I want to flag for anyone laid off from food service or retail specifically — make sure the wages EDD has on file match what you actually earned. These industries sometimes have tips or hourly shifts that weren't reported consistently by employers. The DE 429Z will show your weekly amount, and if it looks way too low based on what you remember earning, that's the moment to look into it.

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Nina Chan

Author

My pay was pretty consistent, hourly with no tips at this last job. But I'll check the DE 429Z carefully when it comes.

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Tips from previous jobs within the base period would count though, so if you had a job with tips in the last year and a half, those wages matter too.

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This tripped me up. I had a tipped job two jobs ago and those wages were part of my base period. EDD included them and my benefit amount was higher than I expected.

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The debate about minimum wage and unemployment is genuinely complicated outside of EDD — economists are split on it, there are studies pointing both ways, and what happens at a small restaurant versus a large chain is pretty different. For your actual claim though, none of that matters. EDD just sees that you separated from employment through no fault of your own. That's the only frame they're using.

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Nina Chan

Author

Makes sense. I think I was overthinking it and conflating the policy question with what EDD actually cares about.

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Totally understandable to conflate them when your employer literally used wage costs as their stated reason. But EDD isn't evaluating whether the layoff was economically justified, only whether it was your fault.

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FOUR WEEKS and no payment is making me spiral reading this thread. Same exact situation — restaurant, minimum wage argument from ownership, laid off in a group of like six people at once. UI Online just says Pending on everything and I haven't gotten a single piece of mail from EDD yet. Do I even exist in their system??

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If you applied online and got a confirmation number, you're in their system. The two-week to three-week processing window for a first payment is real, and four weeks can still fall within normal range for a new claim that needs wage verification. The bigger question is whether you've been certifying every two weeks since you applied — if you haven't certified, nothing can pay out even if EDD approves you.

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I certified once so far! But only once because I didn't know I was supposed to do it again. How often exactly?

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Every two weeks on the dot, starting about two weeks after EDD processes your application. Missing a certification period means those weeks go unpaid and you can't go back and add them. Set a reminder so you don't miss the next window.

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So many people get tripped up on this. The every-two-weeks thing isn't super obvious when you first file and nobody exactly announces it loudly.

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Just want to throw in — the minimum wage connection question is something labor economists have studied a ton. Some research shows modest job losses in specific sectors like food service when minimum wages jump significantly. California has had some of the steepest increases and restaurants have been the most vocal about it. Whether your specific layoff was 'because of' the minimum wage is impossible to prove but it's a very common story in this state right now.

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Nina Chan

Author

Yeah that lines up with what I've seen in the news. It doesn't help me with my EDD claim but it does validate what my manager said.

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The research is genuinely mixed though. Some economists find the job losses are small or concentrated in specific subsectors. Others find larger effects. Where you land depends heavily on the study methodology. For California food service workers, though, the layoff experience is definitely real regardless of the macro debate.

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Quick thing I want to know — if EDD approves my claim from a minimum-wage job, does the payout get deposited on a schedule or is it random? And is direct deposit faster than the debit card they apparently send?

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EDD sends a Money Network prepaid debit card in the mail unless you switch to direct deposit or paper check through myEDD. Payment timing is tied to when you certify — online certifications often show up in the account within about 24 hours. You can check your payment status anytime through UI Online or by calling 1-866-333-4606, which runs 24 hours. As for which method is faster between direct deposit and the card, EDD doesn't say one beats the other.

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Got it. I'll probably just set up direct deposit to be safe. Thanks for the actual answer.

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Anyone else notice that the people who get through the EDD process smoothest are the ones who just keep certifying, stay on top of CalJOBS, and don't do anything that makes EDD need to investigate? The minimum wage-layoff situation is clean on its face. It's when separations get complicated that people end up stuck in adjudication for weeks.

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Completely agree. I've seen people in my own network get stuck for two months because their employer disputed the reason for separation. A clean layoff where the employer doesn't contest anything typically moves fast.

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What does it mean when an employer contests a claim? Can they actually stop you from getting paid?

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An employer can respond to EDD and give their side of the story, but they don't get to make the final call — EDD decides. If there's a dispute about why someone left, EDD schedules a phone interview with the claimant to hear both perspectives before making a determination. The employer's response can delay things and trigger an interview, but it doesn't automatically deny a claim.

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Following up on my own situation from earlier — I ended up getting through to EDD using Claimyr and speaking with an agent. Turns out my claim had an identity verification step open that I didn't know about because the DE 1326C notice went to my old address. The agent walked me through what was needed to get it resolved. Really glad I found a way to actually talk to someone instead of just watching the Pending status.

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Nina Chan

Author

This is good to know. I should double-check that EDD has my current mailing address before anything gets mailed to the wrong place.

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I had the same address issue!! Spent three weeks wondering why no mail came, turns out EDD had my previous apartment on file. Update your address in myEDD before anything else.

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For what it's worth on the minimum wage economics angle — California raised the minimum wage for fast food workers to $20 an hour earlier and restaurants definitely responded by cutting hours or positions before even cutting headcount outright. The people who saw their hours go from 35 a week to 18 were technically still employed but suddenly eligible for partial UI benefits. That's a less-talked-about connection between wage floors and unemployment claims.

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Nina Chan

Author

Wait, you can collect partial UI even if you still have a job? I didn't know that.

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If your hours get cut enough that your weekly wages drop below your weekly benefit amount, you may be eligible for partial benefits. You'd still certify and report what you earned for each week, and EDD works out whether you're owed anything. The first $25 or 25 percent of what you earned that week — whichever is bigger — doesn't count against you, and the rest gets subtracted from your weekly benefit amount. So partial situations can still pay out something.

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Exactly. It's not just people who lose jobs entirely. Hours cuts from wage pressures send a lot of people into partial UI territory.

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Something that tripped up a coworker of mine — she assumed the phone interview she had with EDD was the same as an appeal hearing, so she went in thinking she needed to fight for her claim like it was a legal proceeding. EDD's phone interview is just them asking clarifying questions about your separation before they make their decision. An appeal is a whole separate thing that only happens after you get a denial and disagree with it.

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I definitely thought those were the same thing until reading this thread. What actually happens at the interview?

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They basically walk you through why you left, your last job, your availability, things like that. It's conversational not adversarial. The notice EDD sends (DE 4800) even lists the questions they're likely to cover so you can be prepared. For a layoff it's usually pretty short.

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Nina Chan

Author

Good to know. I haven't gotten a DE 4800 yet, which I think means they aren't questioning my separation. Fingers crossed that holds.

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The CalJOBS requirement trips up a lot of people who think applying for EDD and looking for work are separate worlds. They're connected — EDD can pause payments if you haven't registered and posted a resume within that 21-day window on the DE 8405. Some claimants also think CalJOBS is optional or only for people who want job training. It's a standard requirement for most claimants.

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Is there any situation where EDD waives the CalJOBS requirement?

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EDD will tell you on the notice if you're exempt. Union hiring hall members and some others get exemptions. But if EDD hasn't told you that you're exempt, assume you need to do it.

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I registered in CalJOBS the same day I got the DE 8405 just to get it off my plate. The site is a little clunky but it doesn't take long once you're in.

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Overpayments are the thing that keeps me up at night about UI. If EDD decides something is off with a past week — like you earned wages you forgot to report — they can send a Notice of Overpayment and want that money back. And if they decide you hid it on purpose, it becomes a fraud case with penalties. For anyone asking here: always report exactly what you earned for the week you earned it, not when the paycheck arrived.

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Nina Chan

Author

My situation is clean, straight layoff with no work since. But this is a good reminder for when I do start picking up work while claiming.

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Does that mean if I work one day during a certification period I have to report it even if the amount was tiny?

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Yes, every dollar. Report what you earned for every week you're certifying, no matter how small. EDD has ways of cross-checking wages with employer filings and catching unreported earnings after the fact is worse than reporting them upfront.

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Something nobody's said yet in this thread — make sure you check whether your identity was verified through ID.me after you applied. EDD moved to requiring that and if it's not done, everything just sits in Pending quietly while you assume processing is happening. It's one of the most common reasons new claims stall out.

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Nina Chan

Author

I did the ID.me step right when I applied, it was part of the online application flow for me. But I can see how someone who applied by phone might miss that.

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Exactly — phone applicants get a physical notice (DE 1326C) asking them to verify, but if that goes to a wrong address it just disappears and EDD waits without telling you. Online applicants usually get pushed through ID.me in the flow but not always.

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This was literally my problem as the person who posted earlier. DE 1326C went to old address, claim sat Pending for weeks. If you haven't heard from EDD in two weeks, go check that ID.me step is actually complete.

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For people worried about EDD and minimum wage connections affecting their claim — here's the simplest way to think about it. EDD's job is to decide if you qualify for benefits based on your work history, your earnings, and why you're no longer working. The state's wage policy decisions are completely separate from that calculation. A worker laid off from a minimum wage job and a worker laid off from a six-figure job go through the same EDD process.

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Nina Chan

Author

This thread has genuinely calmed me down a lot. I came in worried that my claim would be complicated and it sounds like it should be one of the simpler ones.

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Layoffs almost always are, as long as the employer doesn't dispute it. Keep certifying, do your CalJOBS registration, and check UI Online every few days. That's really all you can do from your end.

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Filing for EDD benefits from a minimum-wage restaurant job — does the 26-week maximum apply the same way? Like is there any shorter cap if you weren't earning a lot?

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The 26 weeks is a maximum based on a formula — either 26 times your weekly benefit amount or half of all your base period wages, whichever is less. Someone with lower overall wages could potentially have their total benefit capped below 26 weeks because of the second half of that formula. It's not a separate rule for lower earners, it's just how the math works out. The DE 429Z will show your maximum benefit amount, which is what you'd actually be entitled to in total.

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Okay that makes more sense. So I should look at the maximum benefit amount on the DE 429Z, not just assume I have 26 full weeks.

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Exactly. The 26 weeks is the ceiling not the guarantee. The DE 429Z is your real answer.

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Last restaurant I worked at paid exactly minimum wage for two years. Filed for EDD after getting laid off during a slow season. Used Claimyr to reach EDD when my second certification showed no payment — the agent checked my file and said the payment was processing normally and should post within a day, which it did. The pending status in UI Online just hadn't refreshed yet.

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I didn't know the UI Online status could lag behind the actual payment. So sometimes the money is coming even when it still says pending?

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That's what the agent told me for my specific situation. The status updates daily but the actual payment processing can move ahead of the display. For anything unusual though I'd still phone in to confirm.

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Final thought from someone who's been through two California EDD claims in the last four years — the process is tedious but it works if you follow the steps. The minimum wage-to-layoff pipeline is unfortunately common right now in California food service, so EDD has seen this exact situation many times over. You're not an unusual case. File, certify every two weeks, register in CalJOBS, respond to any notices quickly, and check UI Online regularly. That's the whole playbook.

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Nina Chan

Author

Two EDD claims in four years sounds exhausting. Food service is rough. Thanks for all the input in this thread, genuinely helped me understand what I'm walking into.

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It gets easier the second time because you know the system. Good luck with yours.

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California food service workers have had a weird few years between wage changes and economic weirdness. EDD at least is a known quantity at this point. The system is clunky but navigable.

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Just dealt with an EDD phone situation that's related — my Pending weeks finally moved after I got Claimyr to get me to an EDD agent. My question was about why two specific weeks from early in my claim were still unprocessed even after the rest paid out. The agent found that those two weeks had a work-search flag on them that I hadn't resolved. Got it sorted right on the call.

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Work search flags are a thing? I didn't know EDD could flag individual weeks for that. What did they ask you to do to clear it?

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They asked me to confirm that I'd been actively looking for work during those weeks and what I'd done. It was a brief conversation. The key thing is that those weeks had been certified so they could actually be paid once the flag was resolved. If I hadn't certified them I'd have been out of luck entirely.

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This is why I'm paranoid about certifying every single period even when nothing seems to be happening. At least the weeks exist in the system to be fixed.

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