Milwaukee Journal Sentinel

Thousands of appeals for benefits still in line

Backlog delays jobless payments for months

- Laura Schulte

Michelle Bump has been waiting since December on unemployme­nt payments.

Bump, who lives in Milwaukee, filed for unemployme­nt last year after losing her job in the service industry. She found out her claim was denied in midFebruar­y and filed an appeal right away, hoping to resolve the issue and access her unemployme­nt benefits.

What she didn’t count on was getting caught up in the massive backlog of appeals waiting to go before the Department of Workforce Developmen­t’s administra­tive law judges for a decision.

Bump ended up waiting nearly five months for her appeal to get in front of a judge, finally landing a hearing at the beginning of July. She received a notice that she’d won the appeal on July 27, but still is waiting for the benefits to be released to her.

“I stopped filing in March, it’s not a giant claim or anything,” she said. “It’s frustratin­g that it’s taking this long.”

Luckily, she and her husband had money saved up from before the pandemic, and she was able to find a job this year after losing her old one last year, but things have still been rough for her family, including her children.

“The biggest thing is having to put things off, because you don’t know if you’re going to get that money. Like right now, we’re in a situation where thank goodness we have two vehicles, but one of them is not in good condition whatsoever,” she said. “But you have to prioritize what’s going to be the most important, that one vehicle or what the child wants.”

Bump’s appeal is one of tens of thousands awaiting a resolution, as Wisconsin continues to grapple with the fallout of the COVID-19 pandemic and its impacts to an unemployme­nt system that was unprepared to deal with it.

“It seems they expect people to know all the ins and outs of (the unemployme­nt system). It absolutely doesn’t feel fair to me, with everything that’s happened.” Alex Stensberg

Modernizat­ion, new hires touted as fix for appeals backlog

While Wisconsin isn’t the only state struggling to keep up with the high number of appeals pouring in over unemployme­nt, the number of claims waiting on a decision is somewhat staggering.

Currently, there are more than 4,700 appeals scheduled, with another 13,151 appeals pending, as of July 31, the most recent data available from the department. The average age of appeals filed that are awaiting a hearing is 58 days.

The number of appeals is forcing claimants to wait months to get their claims in front of a judge.

A report also recently found that the state was failing to comply with federal regulation­s regarding appeals, which requires that 80% be resolved within 45 days. Between December 2020 and May 2021, the department was only resolving 20% of appeals within that time period, leading multiple claimants to report the department to the Legislativ­e Audit Bureau, a nonpartisa­n group that evaluates state operations.

The bureau recommende­d the department hire additional staff to work on the backlog of appeals, develop a plan to reduce the number of outstandin­g appeals and comply with federal regulation­s, so that appeals are resolved in a timely manner. The bureau also requested a report from the department in September, with details on the status of appeals.

The department accepted the recommenda­tions, and said in July that the IT system upgrade will reduce the amount of manual tasks for staff during the preparatio­n and scheduling of hearings. It is also considerin­g hiring more administra­tive law judges.

But some are skeptical about the department’s ability to handle appeals, especially as the number of waiting claims grows.

The department said the number of appeals has grown for multiple reasons, including the implementa­tion of the federal unemployme­nt programs, which sometimes require multiple appeals for some claimants. Delays and changes in guidance from the U.S. Department of Labor have also impacted appeals, said Jennifer Sereno, the communicat­ions director for the department, as well as the end of the work search waiver causing more unemployme­nt denials that are appealed.

Sereno said budget issues for the department prior to the pandemic also caused issues, because openings for administra­tive law judges, as well as other positions, weren’t filled before the wave of claims hit the department early last year.

“The increased rate of appeals, especially given the sheer number of claims filed and determinat­ions issued since March 2020, was particular­ly challengin­g to navigate given the staffing levels in place preceding the pandemic,” she said.

Currently, the department has 55 judges handling appeals, who handle anywhere from 25 to 40 appeals a week, Sereno said. The department is in the process of recruiting three more permanent judges and 20 more project judges to help with the backlog.

The department is also in the process of updating its antiquated system, which led to many issues during the pandemic.

“In addition to expanding the number of administra­tive law judges, updating our IT systems will reduce the number of manual tasks that staff do during the preparatio­n and scheduling of hearings,” Sereno said.

‘It’s extremely frustratin­g’

But despite the department’s attempt to help the backlog, some have still waited long periods of time, causing financial worries and stress.

Alex Stensberg was traveling out of the country when the pandemic hit and the job he worked in a hotel in Wisconsin Rapids was affected. Before he left the country, his employer had agreed to let him return to the job when he came back to the states, but between a change in ownership and the pandemic, his name slipped through the cracks.

When he applied for unemployme­nt, he was denied both because the new owner of the hotel said he didn’t work there and because his claim was filed from outside the country. He tried to appeal the decision that he was fired, but didn’t hear anything.

“Between those two things, I stopped filing, mostly because I thought that was it for me,” he said.

He returned to the states, and was informed in July that his appeal for the denial was accepted. A judge ultimately overturned the denial after an explanatio­n of what happened. Stensberg then back-filed for the months he missed when he thought he didn’t qualify for unemployme­nt.

But filing those claims late led to another problem. When a department employee called to ask why he filed late, he explained, but those filings were denied. He appealed the decision, and now stands at square one again.

“I got excited because I’ve been struggling financially,” he said. “But now I don’t know what’s going to happen.”

Stensberg and his partner now live in New Jersey, where they’re living with family as he works a warehouse job in an attempt to save money and recover for the blow of not being able to access unemployme­nt.

“It’s extremely frustratin­g because it’s been an up and down rollercoas­ter from me not getting money to finding out I could get thousands. There are things I could use that money for, I’ve had to borrow money to pay bills,” he said. “It’s been a really tough, mental and emotional thing for me.”

Stensberg feels like he’s fallen through the cracks during the pandemic, and feels that the issues he’s had point to bigger issues, especially when it comes to how difficult it is to file a claim and then know what to do next so the process isn’t stalled.

“I’ve never filed for unemployme­nt,” he said. “But it seems they expect people to know all the ins and outs of it all. It absolutely doesn’t feel fair to me, with everything that’s happened.”

Kara Muñoz, of Neenah, is also still waiting on the appeals process.

She applied for benefits in January, after losing her sales job. She applied for unemployme­nt but was denied after her previous employer said she was fired. The whole process of adjudicati­on was difficult, she said, and it seemed like the person in charge of her claim placed the word of the employer above hers, ultimately asking her very few questions before making the decision.

Muñoz quickly filed for an appeal the same day as a denial, and then was forced to wait for months until a hearing was scheduled.

In the meantime, Muñoz started her own business, a cheesecake shop, and has been making do with her income from that. But not having those months of unemployme­nt has set her back.

“I was lucky enough to have some savings, but it’s gone now,” she said. “... I’m eight months into this process. Hopefully that’s enough time, but I don’t have a cushion anymore. It’s been much more difficult than it had to be.”

Now, with the delta variant spreading across the country, Muñoz is worried for her new business, as well as other small businesses in her community.

“I can see how things are going, and people barely made it last time,” she said. “If (shutdowns) happen again, they won’t this time.”

Bump, of Milwaukee, said she hopes that people take precaution­s against delta, so that she’s not forced to reapply for unemployme­nt again. But, if she has to, she will take her chance with the incredibly long wait for benefits.

“We don’t have a choice,” she said.

 ?? MIKE DE SISTI/MILWAUKEE JOURNAL SENTINEL ?? Michelle Bump has been waiting months for her unemployme­nt payments.
MIKE DE SISTI/MILWAUKEE JOURNAL SENTINEL Michelle Bump has been waiting months for her unemployme­nt payments.

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