Milwaukee Journal Sentinel

State warns backlog of jobless cases may persist

Thousands in Wisconsin waiting for unemployme­nt payments

- Laura Schulte Milwaukee Journal Sentinel USA TODAY NETWORK – WISCONSIN

Despite the hiring of hundreds of new employees, the Department of Workforce Developmen­t is still struggling to tackle hundreds of thousands of unpaid claims for those who lost their jobs due to the COVID-19 pandemic and warns backlogs may persist into mid-August.

Michelle Wright had to leave her job at the beginning of the outbreak, on recommenda­tions from her doctor, in order to protect her 11-year-old immunocomp­romised daughter.

Wright was going to nursing school part-time, and working as a nursing assistant at the time, and left her job to keep her daughter safe and healthy as the risk from the virus grew. She’s been waiting since March 19 for money from unemployme­nt, she said, and there aren’t any signs that the department is going to solve the issues soon.

See UNEMPLOYME­NT, Page 17A

Since the state reopened, Wright has been applying for and interviewi­ng for jobs, and has a second-round interview in the coming days. But she’s worried that her car may be repossesse­d before then.

“My concern is walking out of my house and my car is gone,” she said. “I need my car to get to interviews.”

Luckily, her landlord has been understand­ing of the situation, Wright said, so she’s not worried about her housing. But there are other bills.

“I believe this is a bigger issue. How can you wait and be patient when your phone is blowing up with bill collectors?” she said. “It puts all of us in a bad situation.”

Wright is only one of thousands still waiting for answers from the Department of Workforce Developmen­t, as it works through a backlog of unpaid claims.

‘A big mountain to climb’

So far, the department has hired 334 people to help staff the unemployme­nt division, and is still recruiting for 13 more positions. Some of those hires will be considered “temporary” and won’t work beyond the end of the flood of pandemic-related claims, but others will stay on permanentl­y, said Emily Savard, a policy analyst for the unemployme­nt insurance division of the department.

In addition to the hires by the department, there are also contracts with three different call centers, which will add over 800 people to answer calls and help with adjudicati­on, she said.

The department is battling to get through the backlog of unpaid claims, but there are always new claims coming in, she said. Employees are focusing on older claims first, trying to tackle them in the order they came in.

“The biggest reason for taking as long as it has, there were 240,000 cases filed between March 15 and March 31. The number of cases in those weeks is the reason we have such a workload,” she said. “That was a big mountain to climb.”

Savard said that the department is hoping to return to “normal” by mid-August, meaning that all claims related to the pandemic will have been addressed. That doesn’t mean that claimants who filed in March will be waiting until August to hear from an adjudicato­r, she said.

Despite the growing number of employees, the department still hasn’t been enough to get through the backlog of claims. According to the department website, nearly 3.2 million weekly claims have been received by the department since March 15, but only about 2.3 million have been paid. That leaves 859,399 unpaid weekly claims, up from 795,305 from the last total on June 6.

More than 373,000 of those claims, she said, have been denied and will never be paid. But more than 486,000 of those weekly claims are being held for adjudicati­on, meaning that those recipients are waiting for someone to take

their claims and call them back.

Those claims belong to about 151,000 unique claimants, Savard said. Mostly, the increases week over week are an accumulati­on of claims made by those who have to go through an adjudicato­r to resolve an issue with their applicatio­n, she said. As of now, the department has 259 adjudicato­rs, 65 loaner staff helping with adjudicati­on, and 153 call center staff members helping with adjudicati­on, with the goal of 200 by the end of the month, Savard said.

Another concern that remains, even if the department is able to get through the mountain of unpaid claims, is whether it will be able to handle a second wave of furloughs and business closures if coronaviru­s cases were to spike again.

Savard believes that the department would be able to avoid the backlog, thanks to lessons learned.

“I think having been through this unpreceden­ted situation, we’ve had points where we’ve learned and takeaways to take forward,” she said.

No magic fix

Lawmakers say they are still trying to help constituen­ts.

State Sen. André Jacque, R-De Pere, has been working since the beginning of the COVID-19 outbreak to help his constituen­ts and others who contact him get their benefits.

Since the call centers came online, he’s noticed that more people are contacting his office to let him know that they got their payments. But new requests for help are still coming in, he said. On Tuesday alone he heard from five new people.

Some cases are more severe than others, Jacque said, with people at risk of losing their homes or cars. In some cases, he’s had to give out informatio­n about food banks and other resources so that callers don’t go hungry.

“You just have to give them informatio­n on things they never considered before,” he said.

Jacque said that he wished that unemployme­nt would have been handled differently from the beginning, possibly

with more state employees being transferre­d to the agency more quickly, or even updates to informatio­n technology. But he doesn’t know if any fixes would have been able to address the crush of claims that came in.

“I don’t know that there’s a magic fix,” he said.

But some lawmakers have been more critical.

Sen. Steve Nass, R-Whitewater, issued a press release Tuesday calling for Mark Reihl, the division administra­tor for unemployme­nt insurance, to resign immediatel­y or be fired.

“For weeks, it has been evident that the poor leadership provided by Mark Reihl in his duty to manage the unemployme­nt insurance program has greatly harmed many citizens of this state in receiving vital benefits in a timely manner. His disastrous management continues today impacting more than 151,000 claimants that still have not received benefits or an explanatio­n for denial,” Nass said in the release.

Rep. Evan Goyke, D-Milwaukee, said that like all state legislator­s, he’s been hearing from a lot of constituen­ts needing help with unemployme­nt, but that number has started to slow now. But he doesn’t believe that calling on the administra­tor to leave is the solution, especially because there have been longstandi­ng issues with unemployme­nt.

“That’s the opposite of leadership,” he said.

Even with the slowing number of calls, there’s still a need for changes to prevent situations like these from occurring again, he said. Solutions could range from investing in a new unemployme­nt system to permanentl­y getting rid of the waiting period on unemployme­nt benefits.

Lawmakers have known since 2007 that the state’s unemployme­nt system needed technical upgrades, and in 2014 an audit showed that up to 80% of calls to the Department of Workforce Developmen­t were blocked because of the system’s limits during a major recession.

“Going forward, I’m hoping this was the lesson that we needed,” he said.

‘Sit tight and wait’

Mary Luce started filing for unemployme­nt four weeks ago, when she was furloughed from her University of Wisconsin System job. Her claim was immediatel­y flagged because she works for an educationa­l institutio­n, but she’s not a teacher or a professor, and she works every month of the year, she said.

While professors are on their summer break and typically don’t qualify for unemployme­nt, the other staff at universiti­es don’t get those breaks, Luce said. She’s been trying to get through to someone that she can explain that to at the department but has been unable to talk to anyone who can help. When she has gotten through to someone on the phone line, she’s been told that they can’t help her.

“They can’t tell anyone anything, other than what’s listed on the unemployme­nt site,” she said. “So why are you letting people call when you can’t answer anything?”

Luce said that at one point when she called, she was told to “sit tight and wait.”

“I’m not a sit tight and wait kind of person,” she said.

She knows that other people within the university are likely facing the same issue, and are waiting on a resolution. While Luce is doing OK right now and her husband is still working, she’s still worried.

“I’m worried about paying my bills,” she said. “But I’m not specifically asking for them to fix mine. I want them to fix them all.”

 ?? RICK WOOD / MILWAUKEE JOURNAL SENTINEL ?? Michelle Wright had to leave her job at the beginning of the outbreak, on recommenda­tions from her doctor, in order to protect her 11-year-old immunocomp­romised daughter. She's been waiting since March 19 for money from unemployme­nt.
RICK WOOD / MILWAUKEE JOURNAL SENTINEL Michelle Wright had to leave her job at the beginning of the outbreak, on recommenda­tions from her doctor, in order to protect her 11-year-old immunocomp­romised daughter. She's been waiting since March 19 for money from unemployme­nt.
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