October 14, 2011 New Hampshire

Areas of National Focus: Benefit Year Earnings (BYE): Root Causes: Agency –Manual processes to manage, investigate and track BPC workload –Insufficient tools to timely identify unreported work and earnings –Inadequate agency wide awareness regarding how to prevent and detect potential BYE issues Claimant –Unreported employment/earnings –Incorrect reporting (e.g., multiple employers, reporting net wages instead of gross wages, estimating earnings) Employer –Inadequate reporting of new hires and rehires –Failure to respond to requests for wage verification 2

Areas of National Focus: Benefit Year Earnings (BYE): Strategies: Implement BARTS (Benefit Audit, Reporting and Tracking System) Enhance NDNH cross-match to include automated claimant notification letter Reinstate daily SDNH cross-match program Reinstate Quarterly cross-match program (intrastate and interstate wages) Implement additional cross-match programs (e.g., Dept. of Corrections, State Employees) Increase employer messaging re their responsibility to report new hires and rehires Promote increased claimant awareness Employee training initiative Enhancements to weekly continued claim form to increase quality of information collected (e.g., require reporting of both gross and net wages, collect employer name and contact information) Implement “Fraud Tip Line” on NHES website 3

Separations (SEPs): Root Causes: Agency –Incomplete fact finding –Processing errors - untimely identification of potential issues Claimant –Failure to report separations –Failure to provide correct response re: reason for separation Employer –Employers and agents do not respond timely or accurately to requests for separation information Areas of National Focus:

Separations (SEPs): Strategies: Implement SIDES Hold employers accountable for failing to respond (e.g., not relieving charges, imposing penalties) Initiate agency wide training effort to included targeted adjudication training Daily sampling of non-mon cases for BTQ review Promote increased staff accountability for controllable overpayments Review current NHUIS fact-finding questions for clarity and understanding, add/modify questions as needed Comprehensive review of forms, letters and procedures to identify changes needed to improve the quality of the information received from claimants and employers Explore additional technology solutions (e.g. creating an alert when a claim goes from a partial to a total claim that will also trigger the mailing (automated) of a fact finding form to the claimant 5

Areas of National Focus: Work Search Issues: Root Causes: Agency –Additional training on reviewing claimant work search logs –Two points of entry for claimants to file their weekly CCFs (IVR or Web) Claimant –Failure to provide a timely work search –Inadequate work search Employer –N/A 6

Areas of National Focus: Work Search Issues: Strategies: Require all claimants to file via the Web; must provide documentation on the CCF re their work search contacts in order to certify claim Provide refresher training for UI and ES staff on determining an adequate work search Recommend legislation to define the number of weekly work search contacts required versus the current “reasonable and prudent” standard Increase claimant messaging re work search eligibility requirements 7

ES Registration: Root Causes: Agency N/A Claimant Claimants do not register for employment services Employer N/A Strategies: This is not an issue in New Hampshire as claimants are automatically registered when they file their Initial Claims Areas of National Focus:

State-Specific issues: Base Period Wages: Root Causes: Agency –Technology issues re the interface between the NHES Wage System and UI Benefit System. –Issues associated with recognizing potential eligibility for a new UI claim before paying benefits under a different program and properly identifying successive benefit year claims Claimant –Claimants not reviewing their monetary determinations to verify that wages reported are correct –Claimants providing an incomplete work history Employer –Misreported wages –Worker misclassification 9

State-Specific issues: Base Period Wages: Strategies: NHES Wage System/UI Benefit System Interface problems (2011) Add “Edit” to include name field in NHES Wage System Provide refresher training re identifying potential eligibility for new UI claim and requirements for successive benefit year claims Increase claimant messaging efforts to emphasize requirement to provide a complete work history Conduct targeted audits to identify potential worker misclassification issues Ongoing participation in State of New Hampshire’s Joint Agency Task Force on Employee Misclassification Enforcement (State Agencies currently represented include: NH Employment Security, NH Dept. of Labor, Revenue Administration, Insurance, Justice, Transportation) Increase employer messaging efforts to clarify reporting requirements 10

State-Specific issues: Able and Available Issues: Root Causes: Agency –Timely identification of potential A & A issues Claimant –Insufficient knowledge of able and available eligibility requirements –Continuing to file when not able and available Employer –N/A 11

State-Specific issues: Able and Available Issues: Strategies: Continue to evaluate NH BAM Program data to identify/understand all root causes Targeted claimant messaging on “Able and Available” eligibility requirements Develop FAQs detailing Able and Available requirements; disseminate via a broad range of formats including: the NHES website, BRI’s, ERI’s, NH Works Resource Centers Daily sampling of non-mon cases for BTQ review Refresher Training on identifying potential “able and available” issues. 12

State-Specific issues: NH Law, Rule and Policy: Root Causes: Agency –Complexity of law presents challenges to proper administration –Errors due to inconsistent application of law –Insufficient legal penalties to deter fraud Claimant –Lack of understanding that entitlement to unemployment insurance is based on eligibility not need Employer –Lack of understanding that the employer may not determine eligibility 13

State-Specific issues: NH Law, Rule and Policy: Strategies: Review law, rule and policy to identify opportunities to reduce complexity Introduce legislation to strengthen worksearch requirements to impose monetary penalty for fraud to allow wage garnishment Refresher training on correct application of the law (especially exceptions) Ongoing claimant and employer education regarding eligibility requirements 14

Communications Communications: Root Causes: Agency –Providing clear and consistent information –Promote Culture of Integrity/individual responsibility re: impact on improper payments Claimant –Misunderstanding eligibility requirements Employer –Misunderstanding eligibility requirements 15

Communications Communication Strategies: Strategies: Provide refresher training to all employees Establish quality measurement for controllable improper payments Review all forward-facing messaging to claimants and employers for clarity including but not limited to: IVR scripts NHES website Social media R&O booklet Employer Handbook FAQ’s Help text 16

“ Everyone Owns Integrity” Strategies to Support Owning UI Integrity: Provide a unified message to all department employees to promote a culture of integrity: Launch agency-wide campaign to introduce and promote a unified “Everyone Owns Integrity” message Conduct comprehensive data analysis to identify specific root causes and develop training modules (Continuous Process Improvement Model) Ongoing and timely communication of BAM results to management and front line staff to establish goals and measure progress (Continuous Process Improvement Model) Establish quality measurements for controllable improper payments and hold staff accountable Ongoing Staff, Claimant and Employer education Use Community of Practice “Tool Kit” resources to support internal and external messaging campaigns 17

Summary The State of New Hampshire is committed to preventing overpayments by reviewing and improving processes, reducing errors, maximizing technology solutions, enhancing customer communication efforts (claimant, employer and agency staff) and launching an agency-wide “Everyone Owns Integrity” campaign.

“Integrity: Own It!” Questions? State Contact for follow-up: Colleen O’Neill: Phone: 603/ Summary and Q&A