October 14, 2011 State Presentation:

 Benefit Year Earnings (BYE): Root Causes Identified:  Agency Causes  Inadequately educating claimants on reporting requirements  Allowing continued payments after identifying unreported wages  Not effectively requesting information from claimant  Claimant Causes  Confusion about when to report earnings  Confusion about what type of earnings to report (tips, gross, etc…)  Willful misrepresentation  Employer Causes  Misclassification of employee status  Unreported earnings (paying under table)  Lack of timely responses to Department Inquiries 2

 Benefit Year Earnings (BYE): Planned action(s) to address:  Increase cross match frequency from monthly to weekly  Clarify weekly claim certification language  Better communication to the public and employers about responsibilities  Requesting information from claimants on new hire hits and stopping benefits for failing to respond  Incorporate earnings detection procedures in tax audits Principal milestones:  More accurately reported earnings by claimants  Increased response by employers to requested info  Decreased overpaid weeks from new hire hits 3

 Separations (SEPs): Root Causes Identified:  Agency Causes  Adjudication errors  Inaccurate delivery of filing notices to employers  Mishandling of information, preventing timely adjudication  Not prioritizing other than Lack of Work filing notice responses  Claimant Causes  Incorrect information at IC/AC  Providing misleading information  Providing fraudulent information  Employer Causes  Lack of response to Notice of Claim Filed  Late response to Notice of Claim Filed  Incorrect/incomplete information during adjudication 4

 Separations:  Planned action(s) to address:  Ongoing claims taker and adjudication training  Communication to employers regarding response importance (including tax staff training)  Gather more accurate separation information at the time of the IC/AC  Implement SIDES for increased data exchange  Principal milestones:  SIDES Implemented  Review and modify current training practices  Create and deliver information to employers  Revising information gathering from claimants 5

 Work Search Issues: Root Causes Identified:  Agency Causes  Documenting and advising of work seeking requirements  Under-utilizing “step-down” provisions  Vague work search standard  Lack of work search audits  Claimant Causes  Not understanding requirements  Not “actively” seeking work  Poor record keeping 6

 Work Search Issues :  Planned action(s) to address:  Requiring work search on weekly certifications  Random reviews of work search  Specific advisement of what is required at IC  Improved ES/UI Connectivity  Principal milestones:  Weekly certification modification complete  Process in place for individual advisement  Create an ES/UI Connectivity Task Force 7

8  Able/Available  Root cause(s) identified:  Claimants do not understand what it means to be “able and available”  Fraud  Staff fails to correctly identify potential issues  Planned action(s) to address issue  Improved systems to identify incarcerated claimants  Ongoing staff training and feedback  Clarified claimant communication  Not allowing online reopens  Stop benefits when there are earnings in one week, and zero earnings in the following  Principle milestones  Decreased payouts to incarcerated claimants  Weekly certification questions in place  New communication methods in place

 Strategies to Support Owning UI Integrity:  Foster integrity by:  Showing staff that their actions impact integrity  Focusing on integrity from the start  Providing feedback to staff  Accountability for performance issues  Committing to including integrity in all training  Having an ongoing access point for suggestions including acknowledgement back to staff 9

 Develop processes  Periodic “Integrity Newsletter”  Published Improper Payment Data  Creating a web access point for suggestions  Internal fraud referral system  Maintain management oversight  Create an audit and feedback process  Develop improved cross-sectional communication  Ensure managers are held accountable  Ensure managers hold staff accountable

 Communications Strategies:  To claimants  Present information more clearly at the Initial Claim  Make videos available for various topics  Analyze and adopt tools as appropriate from the “Claimant Messaging Project”  Locate and utilize partner groups and media to spread information  Utilize social media outlets  To employers  Ongoing emphasis on the benefits of timely response in regards to individual and collective tax rates, along with trust fund solvency  Create attractive, easy to read information to be included with periodic mailers  Utilizing partners who already contact employers  Update the “Employer Handbook” to include impact information, fraud reporting, etc… 11

 Communications Strategies, Continued:  To state UI staff  Improved communication for process changes  An agency commitment to reciprocating communication lines between sections  Update, clarify, and maintain policy and procedure manuals  To state leaders (Governor, state legislature, etc.)  A readily available prepared summary of info for inquiries  Distribute numbers to legislators showing efforts and improvements, and status of projects 12

“Integrity is U & I!”  Questions?  State Contact for follow-up: Pat Brost: Phone: 503/