2015 STC Summit OVERCOMING IMPLEMENTATION CHALLENGES Juliane Barone, Ohio Evan Littrell, Nebraska Janice Harlin, Michigan

2015 STC Summit The “Long and Winding Road” to the Implementation of SharedWork Ohio Juliane Barone, Esq. Benefits Policy Administrator Office of Unemployment Insurance Operations Ohio Department of Job and Family Services

2015 STC Summit Ohio’s Short Time Compensation Journey 3

2015 STC Summit SharedWork Ohio Timeline – The Road to Implementation 4 November 2013 March 2014 July 2014 August 2014 March 2015 Nov 2015 SharedWork Ohio law (Ohio Revised Code – ) was found to be in federal conformity by the Department of Labor. The SharedWork Ohio program opened doors for business. Ohio was approved for two grants (totaling $3.7 million) for the automation of the SharedWork Ohio program, as well as SharedWork Ohio promotion and enrollment efforts. Ohio’s benefit payment system “OJI” completed the initial phase of automation of the program. The first employer application was processed by the SharedWork Ohio Unit. OJI completed full automation of the program. To date, 37 plans have been approved by the SharedWork Ohio Unit with approximately 1900 participating employees.

2015 STC Summit Implementing SharedWork Ohio: Ohio’s Legislative Experience STC was championed by legislative sponsors and large Ohio manufacturing companies. SharedWork Ohio went through over 15 iterations before it was finalized. The process spanned two legislative sessions. Multiple conformity issues identified by DOL in the various versions of the bills. 5

2015 STC Summit Implementing SharedWork Ohio: Ohio’s System Design Experience 6

2015 STC Summit Hurdles Faced on the Road to Implementation Competing priorities Limited funding Completely new concept for IT and program staff; difficult to have a clear “vision” of system design Re-training staff and shifting mindsets on terminology and legal interpretations that changed in the course of obtaining federal certification Missed requirements necessitated either costly design changes downstream, or the program had to “make due” with the design as-is (examples: child support deductions, layoffs of SWO employees mid-plan) 7

2015 STC Summit Takeaways for States Considering Taking A Similar Journey Identify and get buy-in from key stakeholders not only in the legislative process, but the IT design process. Leverage resources from the entire agency to support the STC program. Memorialize historical decisions, interpretations, and workflows for future reference. Opt for automation. Find a balance between the priorities of employer flexibility and compliance with law. 8

2015 STC Summit Balancing Employer Flexibility and the Law– An Example 9

2015 STC Summit Where is the Program Headed? 10 Planning and preparation for greater utilization in a future recession; Looking for additional opportunities for funding; Prioritizing necessary system enhancements; Increasing employer training and guidance; and Drafting relevant administrative rules.

2015 STC Summit Implementation in Nebraska Evan E. Littrell UI Benefits Director Nebraska Department of Labor

2015 STC Summit Timeline LB 961: Signed into Law 2014 legislative session Commissioner Concept Brief: October, 2014 BA Project Charter: January, 2015 Requirements: February-August, 2015 Technical Requirements: June-November, 2015 Development: December, April, 2016 Testing: May-August, 2016 Implement: October 1,

2015 STC Summit Model for Success Understanding Change Legal (regulatory) Technical Structural (procedural) 13

2015 STC Summit Legal Neb. Rev. Stat § § Establishes Short-Time Compensation Program Funding Appropriations for Implementation Requirements of program Additional regulatory requirements Assistance from USDOL 14

2015 STC Summit Technical Benefit Payment System UI Employer Portal Use of Web application Evolving Administrative Standards System requirements Assistant from USDOL: Reports 15

2015 STC Summit Structural Administrative standards Staffing levels/resource concerns Predictive enrollment: Economic conditions Funding options: base v. temporary funding Assistance from USDOL 16

2015 STC Summit Lessons Learned Holistic approach: Involve everyone! Employer outreach IT UI Program as one: Benefits, Tax, Integrity, BAM Public Information Office Legal 17

2015 STC Summit Model of Change Success Involve every staff level Business Analyst/Project Manager Direct cross-departmental interaction Buy-in from Administration Buy-in from Management Buy-in from Community 18

2015 STC Summit Michigan’s Work Share A Layoff Aversion Program for Employers

2015 STC Summit MICHIGAN’S CHALLENGES PRIOR TO STC through High Unemployment Rates - Antiquated Operating System - Manual Processes - Huge Claims Backlog

2015 STC Summit Michigan’s Unemployment Rates Prior to STC 21

2015 STC Summit MICHIGAN’S IMPLEMENTATION OF STC 22 Legislative/Executive Support: No challenges Stakeholder Support: Selling It - Purely Voluntary - Leverage federal funding (grants and federal reimbursement) Policy: Marrying STC with our State’s strategic goals and policy

2015 STC Summit Michigan’s Implementation of STC (cont’d) Michigan’s Application Process Application filed through Michigan Web Account Manager (MiWAM) via UIA website 23

2015 STC Summit Michigan’s Work Share Eligibility Plan – Unemployment taxes must be current – Experience account balance must have “positive reserve” – Must have paid wages for 12 of the previous quarters – Cannot hire new employees into effected work unit or transfer employees into the unit during a plan, nor reduce hours below the number allowed under the plan – Certification that Work Share is in lieu of layoff – Employee work hours reduced by at least 15% not more than 45% – All employees in the affected unit must participate in the plan – Plans may be approved for up to 52 weeks 24 Michigan’s Implementation of STC (cont’d)

2015 STC Summit Michigan’s Implementation of STC (cont’d) Dedicated Telephone Support Line – Work Share questions can be answered at – Option 1 – employers interested in additional information about work share – Option 2 – assistance with enrollment – Option 3 – employers or claimants with questions about your active Work Share plans 25

2015 STC Summit Michigan’s Implementation of STC (cont’d) How were grants used? – Fully Automate the STC Program – Administration/Outreach for Employer enrollment – Promotion of the program additional marketing scheduled in November 26

2015 STC Summit 27