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Kansas Department of Labor credits new UI system with faster service, but pandemic fraud losses remain large
Summary
Department of Labor officials said the new Unemployment Insurance Technology Enhancement (UTE) launched November 2024 has increased self‑service, shortened processing times and reduced call volume; the department also described ongoing investigations into pandemic-era UI fraud and noted federal limitations on recovery and prosecution timelines.
Amber Schultz, Secretary of the Kansas Department of Labor, told the Committee on Government Efficiency that the agency launched a new Unemployment Insurance Technology Enhancement (UTE) system in November 2024 to replace legacy architecture and improve service, fraud mitigation and employer interactions.
“The solution that we have acquired is very service centric,” Schultz said, adding that the vendor work drew on other states’ implementations and that multifactor identity verification and automated fraud checks are central to the new platform. She said some claimants who cannot verify identity electronically are directed to identity proofing at the U.S. Postal Service.
Operational improvements: the department reported early performance gains in the first quarter after launch: 94% of claimants who file benefits can now complete 100% self‑service, an 80% reduction in claim‑processing time for many routine claims, and a 60% reduction in contact center call volume. Schultz said employer quarterly‑wage reporting compliance increased to 96% and noted the state retained employer account numbers to minimize transition disruptions.
Fraud recovery and limits: Secretary Schultz acknowledged pandemic‑era UI fraud was significant and largely originated with organized international crime rings that exploited legacy systems and federal program gaps. She said Kansas’s investigators and federal partners have recovered roughly 2.4% of fraud‑identified funds — above a national average she cited — and described ongoing referrals to federal and state prosecutors. The department also noted constraints when the statute of limitations for prosecution is five years and some pandemic incidents fall within that window.
Other items: Kansas labor analysts also briefed the committee on Labor Market Information products, reemployment programs (My Reemployment Program referrals after three weeks of benefits) and career tools for students and jobseekers. Schultz said the department is migrating additional IT into the cloud, creating a data warehouse and expanding business analytics to reduce manual reporting burdens.
Ending: legislators thanked the department for the new system and asked for continued follow‑up on fraud controls and employer adjudication processes; several members noted improved constituent experiences since the rollout but asked the department to follow up on a few employer adjudication complaints.
