Virginia unemployment claims process improves with zero backlog reported

Virginia's unemployment compensation system is showing significant improvements, as highlighted in the recent meeting of the Commission on Unemployment Compensation. The subcommittee discussed the current state of unemployment claims processing, revealing that the Virginia Employment Commission (VEC) has successfully eliminated its backlog of pandemic-related claims.

Delegate Munden King raised questions about the status of claims filed by federal workers in Virginia, clarifying that while 1,800 Virginians have filed initial claims, many others affected by federal agency layoffs may not be reflected in these numbers due to their duty stations being outside the state. The VEC confirmed that they are in communication with neighboring states, Maryland and D.C., to gather more data on these claims, although the numbers remain low enough not to require a shift in resources.

The VEC reported that they have achieved a zero backlog in claims processing, with an average processing time for appeals reduced from 575 days to just 10 days. This efficiency is attributed to strategic changes within the organization, including renegotiated IT contracts and workforce adjustments, resulting in savings of approximately $17 million over recent years. The VEC is now operating with a leaner structure while maintaining high service levels, with no capacity issues reported in their call center.

Despite these advancements, the VEC acknowledged ongoing challenges with issuing paper checks for certain reversed appeals, which require a multi-signature process due to fraud prevention measures. However, the overall outlook for Virginia's unemployment compensation system is positive, with the VEC positioned to handle claims more effectively than ever before.

This progress not only reflects the VEC's commitment to improving service delivery but also underscores the importance of continuous funding and system updates to adapt to changing economic conditions. As Virginia moves forward, the focus will remain on maintaining these improvements and addressing any remaining challenges in the unemployment claims process.