by Timothy McQuiston, Vermont Business Magazine The state will make a dramatic break with federal unemployment insurance rules if the backlog of unemployment claims is not resolved by Saturday night. Governor Phil Scott announced today that he has authorized the Treasury to issue $1,200 checks Sunday to those Vermonters who have unresolved claims. The state will then continue to validate those claims and adjust them going forward. He said people not working must get money in their pockets as soon as possible. No one eligible for unemployment insurance will lose money because of the delay.
Acting Labor Commissioner Michael Harrington announced the dramatic plan at the governor's media briefing Friday morning. The governor had promised "a creative solution" to the backlog of claims on Wednesday if problems were not resolved "within two or three days." He has now made good on that promise.
"I'm sorry and we're sorry," Harrington said during the presentation. In the five weeks since the novel coronavirus hit Vermont, there have been nearly 80,000 claims. While about half went through with cleanly, the volume of claims bogged down the 30-year-old mainframe. The 34,000 claims with issues, which are often the result of a small error like a typo, have resulted in about 600,000 calls, with some people calling several hundred times a day trying to get through.
Between adding new staff and contracting with a third-party vendor, they are adding about 120 people to the effort.
Harrington anticipates getting through at least half of the 34,000 problem claims by Saturday night.
The federal government could cut some funding to the state, Harrington said, but he's not anticipating them doing anything dramatic. He said federal rules stipulate that claims are verified before money gets paid, but he and the governor understand that people need money. Other states are in the same situation, he said. Claims that can't be audited on the front end will be audited on the back end as needed.
The system is meant to avoid fraudulent claims, but given the situation it is worth the risk to ensure people get paid.
"I think it's worth (the risk) because Vermonters deserve better," Harrington said.
Scott said, "I understand patience is running thin."
Harrington said that he is much less concerned with the new Pandemic Unemployment Assistance program aimed at the self-employed. It's on a new and different system. The issues that could arise are with claims from individuals who are both making traditional claims and PUA claims.
The PUA claims can begin to be filed on Tuesday and weekly benefits could be phoned in by Friday, if all goes as planned (Pandemic Unemployment Assistance Line: (877) 660-7782).
As the PUA system moves forward and complications arise, each claimant will get the weekly minimum of $191 plus the $600 federal contribution.
Harrington is anticipating that 40,000 to 50,000 people will file claims.
Stay updated as the Department about Pandemic Unemployment Assistance and other resources for Self-Employed, Independent Contractors, Sole Proprietors, and others eligible for PUA by signing up for the CARES ACT: SELF-EMPLOYED INFORMATION NEWSLETTER.