South Carolina Department of Employment and Workforce Labor Commerce and Industry Subcommittee Briefing January 10, 2012 1
AGENDA • • Disqualification Seasonal Legislation Suitable Work Legislation Work Search Verification Overpayments Move from 20 - 16 Weeks Pre-filed Bills 2
UI Disqualification Review 10/1/2010 – 9/30/2011 Misconduct Type Number of Occurrences Current Average Disqualification Absenteeism 13, 051 10. 5 Poor Quality of Work 8, 443 12. 3 Poor Attitude 1, 068 11. 3 Violation of Company Policy 4, 388 12. 5 TOTAL 26, 950 11. 7 Changing the current DEW policy for these four areas to a 16 – 20 week disqualification range provides the potential results: Increased Disqualification Parameters Potential Savings Potential Tax Savings 16 - 20 Weeks $32, 261, 481 5. 2% Recommendation conforms to current state statute 3
Disqualification Parameters for Misconduct Reason for Separation Current New Parameters Current Avg Maximum # of Weeks Available Absenteeism/Tardiness 10 -16 16 -20 9. 5 4 Poor Quality Work 10 -16 16 -20 7. 7 4 Poor Attitude 10 -16 16 -20 8. 7 4 Violation of Company Policy 10 -20 16 -20 7. 5 4 4
Seasonal Legislation Talking Points • Why is the South Carolina Seasonal Law out of conformity? - Spreads responsibility unevenly for UI charges paid by employers - Inequitable spreading of these charges violates both State and Federal law • Key aspects of the proposed seasonal legislation: - Brings South Carolina into Federal and State conformity - Accelerates the repayment of the federal loan 5
Seasonal Legislation • Department Policy Change – Option 2: Leave charging alone and remove seasonal wages if off-season - Requires significant computer changes - Reduces charges to seasonal employers - Does not relieve seasonal employer of charges unless they are the only base period employer • Implementation: IT Bid - external ($2. 8 M) • Operational for claims made in connection with the 2013 “Peak Tourism Season” • Provides adequate time for system reprogramming and applications to be made by businesses 6
Suitable Work Legislation • Department Policy Change: - After 4 Weeks: Must accept job offers that pay 90% of previous wages - After 8 Weeks: Must accept job offers that pay 85% of previous wages - After 12 Weeks: Must accept job offers that pay 80% of previous wages - After 16 Weeks: Must accept job offers that pay 70% of previous wages • Implementation: Internal DEW IT Project - Cost: $160 K - 6 months 7
Work Search Verification • Department Policy Change: - Continue with 4 contacts per week (online, phone, in person) - Require 1 job search/contact per week to be conducted through SCWOS for electronic verification and linked to UI system - Inform claimants that work search is subject to random verification as a deterrent • Implementation: Internal DEW IT Project - Cost: $160 K - Timeline: 3 months 8
Unemployment Benefits 20 Weeks to 16 Weeks • Request for Information from Senator Bryant • Requires change in existing state statute • Impact: Potential Savings Potential Tax Savings Total UI Benefits Approx $9, 200, 000 approx 2. 0% Reduction 64 weeks • DOL Feedback: DOL strongly disagrees but no legal ramifications in terms of violating federal law 9
Pre-Filed Bills • S. 1049 - Creates additional requirement of performing community service approved by DEW as a condition to receiving benefits. • S. 1050 - Bill requires benefit applicants to undergo a drug test, the cost of which is borne by the applicant. - DOL Feedback: Forcing someone to get drug tested and agree to community service violates federal law. Could result in decertification from receiving federal funds to administer the UI benefits programs.
Pre-Filed Bills • S. 1026 - Repeals the existing law and restores the requirement that part-time workers must continue seeking full-time employment to draw benefits. - DOL Feedback: DOL discouraged repealing the statute, but no legal ramifications in terms of violating federal law.
Overpayments • Integrity Task Force • Benefit Audit and Reporting Tracking System (BARTS) • State Data and Information Exchange System (SIDES) • DOL Office of Inspector General 12
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