labor lawAdivision of labor law center

Twenty-two states plus Puerto Rico will receive more than $6 million in federal funds to improve security in their unemployment insurance programs, according to the U.S. Department of Labor. This is the fourth consecutive year that such awards have been made.

The Department of Labor today announced that $6,008,840 will go to 22 states to improve their information system technology. The money will fund programs that

• Make it easier to apply for unemployment
• Reduce fraudulent unemployment claims
• Keep client’s personal information more secure

“Data security improvements implemented with the help of these funds will strengthen the integrity of our state unemployment insurance systems,” said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco. “It is more than reasonable that tax-paying workers and employers expect states to continuously improve the performance of their UI systems.”  

The awards will promote the use of National Institute of Standards and Technology guidelines to identify and eliminate weaknesses in Unemployment Insurance (UI) systems. These upgrades will make it possible for the states to be security certified and receive accreditation of their security precautions.

This year’s awards go to Alabama, Alaska, California, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wyoming, and Puerto Rico.

The average award is $261,253.91. However, individual awards vary from $25,000 in Wyoming to $583,637 — more than half a million dollars — in Colorado.

States with the highest awards include California with $494,500, Georgia with $571,726, Iowa with $439,940, and New Hampshire with $474,659. Puerto Rico received $355,500.

States with the lowest awards include Alabama with $99,508, Illinois and Kentucky each with $100,000, Indiana with $122,129, North Dakota with $48,845 and South Carolina with $94,955. A complete listing of states and awards is available from the U.S. Department of Labor website.

Part of the funds are earmarked to correct specific security concerns in several states that were identified through  the Federal Information Security Management Act audits conducted by the Office of the Inspector General.

Some of the security enhancements include risk management, contingency planning and improving incident response capability. Others will enhance data center security and data integrity or provide security training and awareness.

In some states, the funds will be used to upgrade hardware and soft ware to increase system security and IT security documentation.

“Unemployment insurance plays a critical role in helping workers persevere through tough times,” said Secretary of Labor Elaine L. Chao. “This funding will boost states’ efforts to secure UI systems against fraud and ensure that those in need receive assistance.” 

According to the U.S. Department of Labor website, Unemployment Insurance benefits businesses, communities and the economy, as well as providing a welcome cushion for workers and their families.  Unemployment Insurance was created in 1935 under President Franklin Delano Roosevelt, to ease the effects of the Great Depression, when millions of Americans were out of work. The plague of unemployment meant that people couldn’t buy good or services, which contributed to the economies downward spiral.

Unemployment Insurance is a federally mandated program administered by the states. Regulations and benefits vary slightly from state to state.  The program is supported by taxes paid by employers.  

State Unemployment Insurance programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own, as long as the workers meet certain other eligibility requirements set by state law.

In general, to collect unemployment benefits, one must file weekly or biweekly claims. Any earnings or offers of work should also be reported. In many states these claims are filed by mail or telephone. In some cases, workers can file unemployment claims online.

In order to be eligible for unemployment, a job-seeker must be able to work and actively looking for work. If requested, they must appear at the Unemployment Office on the date and time scheduled. Failure to report may result in benefits being denied.

Job-seekers who file for unemployment are usually required to register with the state employment service. Generally, workers who are 100% disabled do not qualify for unemployment insurance, although in some states they may qualify for short-term disability pay.

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