Maryland lawmakers demand overhaul of unemployment insurance system amid ongoing claim delays

Maryland's unemployment insurance system is facing significant challenges, as highlighted during the recent FIN Committee session on January 22, 2025. Lawmakers expressed concerns over the ongoing delays and frustrations experienced by constituents trying to navigate the unemployment claims process.

Senator Lian raised issues regarding the lack of communication about claim statuses, noting that many constituents are left in the dark about their unemployment claims. The Secretary of Labor acknowledged the system's shortcomings, admitting that the current IT infrastructure, implemented during the pandemic, is cumbersome and difficult to navigate. Efforts are underway to improve customer service, including direct support from staff to assist claimants over the phone, rather than relying solely on call centers.

The committee also discussed the need for a more transparent process, with calls for a flowchart to help constituents understand where they are in the claims process. The Secretary emphasized that while immediate fixes are being implemented, a comprehensive overhaul of the system is necessary for long-term improvement.

Fraud in the unemployment system was another critical topic. The Secretary reported a significant decrease in fraudulent claims since the pandemic's peak, but acknowledged that sophisticated fraud tactics continue to pose challenges. The department is actively working to address these issues, with dedicated staff focused on fraud prevention and resolution.

As the session concluded, lawmakers reiterated the importance of improving the unemployment insurance system to better serve Maryland residents. The Secretary committed to ongoing discussions with legislators to enhance the process and ensure that constituents receive the support they need in a timely manner.