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Home » Washington, DC News » DC unemployment benefits system… DC unemployment benefits system to be audited after complaints system failed Listen now to WTOP News | Alexa | Google Home | WTOP App | 103.5 FM The District of Columbia’s Inspector General will audit D.C.’s Department of Employment Services, in response to complaints of technical glitches and poor communication, resulting in struggling unemployed workers going weeks or months without income. In a joint oversight roundtable , D.C. Councilmembers Elissa Silverman and Robert White said employees had been asked to stay home to prevent spread of the coronavirus. “That was an incredible sacrifice that we asked of our workers, but the unemployment insurance safety net was supposed to be there to help people make it through this time,” said Silverman. Between mid-March and September 2020, more than 143,000 new claims for unemployment were filed in the District — five times the number filed in 2019. Technical glitches in what councilmembers called D.C.’s “antiquated” filing system resulted in frustration and delays in the payment of unemployment insurance benefits. “People are just desperate,” said Silverman. “They depend on their UI (unemployment insurance) benefits to get by, and to support their families. And they are having immense trouble getting their money.” Silverman said she had heard from constituents whose lives have been forever changed: “People who have become homeless, who literally cannot afford to buy food and who have had to sell their belongings, just to keep the lights on.” White and several residents who provided public comment said they had been told that the pandemic had produced an unprecedented challenge, involving go to website relief payments and demands from the federal government. “The changes to the benefits and the guidelines apply to every state, equally,” said White. “So, why does it seem that D.C. is having a much harder time than most other states in keeping people’s benefits coming. “When people have to get in touch with elected officials in order for the system to work, that is a sign that the system is broken,” said White. In a May 3 letter to DOES Director Unique Morris-Hughes, the Office of the Inspector General said the audit would assess the agency’s “responsiveness in processing UI claims,” and “controls over the accessibility, availability, and reliability” of the District’s system. Affected residents testifying before the roundtable said the delay in receiving unemployment benefits was producing intolerable stress. “My resources are thin,” said Valerie Graham. “I don’t have an awesome landlord, who’s going to be nice when I say, ‘Hey, I don’t have the rent.'” While landlords are temporarily prevented from evicting tenants,  Graham said her landlord “can make my life difficult in other ways.” Silverman, White and several members of the public described DOES as providing conflicting information and guidance to unemployed workers seeking relief from the system they paid into while they were working. “Receiving benefits is not supposed to be our full-time job,” said Gideon Sandford. “We pay DOES to issue benefits.” The audit will begin around May 12, according to the letter from the OIG.

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Over and over again, workers across this state have demonstrated their willingness to engage in good faith discussions to reach solutions. And throughout the pandemic, too many have had to rely on unemployment benefits as they lost their jobs through no fault of their own. Working people need the economic supports provided by unemployment benefits and a budget that addresses the unmet needs for healthcare, housing, and tax relief. We thank Governor Lamont for bringing all of these parties together and we have faith that the spirit of this compromise will be reflected in the legislation ultimately considered by the General Assembly.” CBIA president and CEO Chris DiPentima called the package of unemployment compensation system reforms “historic,” noting the potential long-term benefits for the state’s economy. “This package represents the most significant set of reforms in the history of the state’s unemployment system,” DiPentima said. “Many of the changes represent reforms CBIA has advocated for since the end of the last recession to address one of the business community’s top concerns – the need for more predictable, certain, and stable policies. Such comprehensive reforms show what we can accomplish together when the public and private sectors collaborate and develop solutions that benefit all.” “I am pleased to join this bipartisan group of legislators, state leaders, and advocates to present a comprehensive plan that creates a more resilient unemployment insurance trust fund that can endure future recessions,” House Majority Leader Jason Rojas (D-East Hartford, Manchester) said. “For Connecticut to move forward from the current economic crisis and build a more sustainable future, we must pave avenues that kickstart the state’s recovery and facilitate an economy where businesses and families can thrive.” “This bipartisan proposal offers a meaningful step toward creating long-term stability in our unemployment compensation fund while easing associated cost burdens for businesses,” House Minority Leader Vincent Candelora (R-North Branford) said. “That advocates for the business community had a seat at the negotiating table is significant, and I’m hopeful the spirit of collaboration that led us to this point will fuel additional conversation about action we can take together more info here to create a more competitive business climate.” “In the wake of the greatest test of our unemployment system the timing was right to strengthen and reform the system so that it's not only solvent for the first time in a long time but also more affordable for the majority of businesses in Connecticut,” Representative Scanlon said. “For many years we've discussed changes but I'm grateful to have worked with my ranking member, the administration, labor and the business community to get this done and reach this historic agreement.” “I want to thank all the parties who persevered to find a solution to this longstanding problem. We did not let the perfect be the enemy of the good,” Representative Cheeseman said. “Compromise was required by all sides and as a result, we have a path to creating a solvent Unemployment Insurance Trust Fund for the first time in decades.” “Workers who lose their jobs need to be able to count on unemployment benefits to sustain them until they’re reemployed,” Sue Garten, managing attorney of Greater Hartford Legal Aid and a member of the state’s Employment Security Advisory Board, said. “A solvent trust fund reduces pressure to cut unemployment benefits when workers need them most.” The bipartisan proposal also includes recession recovery measures based on lessons learned from the COVID-19 pandemic. Specifically, it: Reduces the maximum solvency tax rate during recessions to limit tax increases on a fragile economy; Reduces experience tax rate increases when those increases are due to sector-wide economic shocks, rather than individual firm behavior; and Noncharges employers during and immediately after recessions for benefits paid out through the Department of Labor’s Shared Work program, which helps employers manage business cycles without laying off employees. Finally, it defines each day of absence without either good cause or notice to the employer as a separate absence. The current definition includes one day or two consecutive days. Connecticut’s unemployment insurance system is funded through three taxes. The heart of the program is a state-level, experience-rated tax set for each employer based on the amount of benefits drawn by that employer’s former employees. The experience tax is augmented, as needed to maintain fund balance, by a state-level, economy-wide solvency tax. Finally, the federal government collects taxes to pay for program administration and to recoup any federal loans. All of those taxes are levied not against total payroll, but against a taxable wage base: the first $15,000 an employer pays an employee on Connecticut’s side; the first $7,000 an employer pays an employee on the federal one.