The director of California's unemployment benefits department said she will retire at the end of the year.
The announcement Friday comes after the agency has been overwhelmed by more than 15 million claims during the coronavirus pandemic.
The agency has a backlog of more than 900,000 people still waiting to receive benefits.
Hilliard has said the backlog won't be cleared until the end of January.
California Labor and Workforce Development Agency Secretary Julie A. Sue praised Hilliard for helping reset the agency's culture.
Republican Assembly Jim Patterson urged the governor to appoint a replacement from outside the agency.
