KENTUCKY
"This update highlights the restoration of in-person UI services in Kentucky, details about OUI staffing, funding sources, and assistance provided to claimants. Learn about the challenges and efforts to maintain staff positions in the Labor Cabinet."
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Presentation Transcript
KENTUCKY UI Reform Task Force Update Jamie Link, Secretary Labor Cabinet Buddy Hoskinson, Executive Director Office of Unemployment Insurance
UI In-Person and Phone Updates Fall of 2017 in person UI services were removed from the Kentucky Career Centers April 2021 Labor Cabinet restored UI in-person services at 13 Kentucky Career Centers and opened a call center to assist UI claimants April 15 to July 15, Career Development Office (CDO)/OUI staff have assisted with more than 40,000 in-person appointments April 15 to July 15, OUI staff have taken more than 70,000 calls, via the UI helpline.
Labor Cabinet OUI Staff Detailing UI UI Staffing Staffing Assistance Other state cabinets and offices Training specific to their job detail OUI utilized 219 detailed staff members Assistance
Labor Cabinet OUI Staffing March 4, 2021, Sec. Roberts issued a written budget request to legislative leadership Budget request, (general fund dollars in the amount of $1.1 million in fiscal year 2021 and $8.4 million in fiscal year 2022) to provide funding to restore 90 staff positions General Assembly allocated one-time federal funds for these positions Allocation of one-time federal funds means there is no permanency in position, making it difficult to attract skilled employees OUI and CDO will be understaffed again once those one-time funds are exhausted
OUI Funding Federal funding is based on the information that a state submits in the Resource Justification Model (RJM) The funding model for employer contributions can be found in statute: KRS 341.270 Regular Business KRS 341.272 Contract Construction Business KRS 341.275 Nonprofit Organizations KRS 341.277 Governmental Entities KRS 341.281 Allocation of Benefit Costs to Reimbursing Employers KRS 341.282 - Financing Benefits for State Workers KRS 341.030 (7) Taxable Wage Base per Employee KRS 341.380 How Benefits are Paid, Determining Yearly Min and Max Weekly Benefit Rates
OUI Funding KRS 341.270 Applies to Most Businesses Each employer is given a rate based on their own individual experience Example: If an employer has constant layoffs, then their contribution rates will increase to cover the benefits paid out. Based on KRS 341.030(7), the taxable wage base for UI is set at a workers first $10,800 earned for 2021 and the maximum contribution rate for 2021 is set on schedule A (KRS 341.270) at 9.0%. Therefore that maximum tax an employer would pay per worker earning at least $10,800 would be $972.00.
OUI Technology Upgrades OUI system was coded in the 1970 s System modernization is necessary RFP for a new UI system was published in January 2020. Project estimated to be $40 million National fraud cyberattacks hit the UI systems, which meant that additional elements needed to be added to ensure claimant s personal and financial information was secure With the changes to the RFP and the estimated multi-million dollar cost increase to meet the additional needs, vendor withdrew Rebidding is necessary
OUI Technology Upgrades Contd Recension of RFP, Labor Cabinet leadership immediately formed a steering committee to keep the process moving. The steering committee will: Review all of the questions asked during the RFP process Review number of changes request with RFP How we can possibly have two separate RFP s How we can strengthen the next RFP s How we can immediately update some software to make the system better while awaiting the anticipated total system overhaul Labor Cabinet has also submitted an application to be part of a national modernization process with the US Department of Labor, wherein some modernization and system rebuild costs could be covered by the federal government. Approval of that application is pending.
OUI Technology Upgrades Contd After the RFP was initially bid, Governor Beshear appropriated $4.8 million of CARES Act funding for 4 projects that were included in the original RFP $3,690,339.50 of those funds have been spent on upgrades to make the system more user-friendly and secure
OUI Technology Upgrades Contd Investing in a new OUI system is essential to ensure the ease of use, and security, of each claimant Continued investment will be critical to keeping the technology up-to-date, and to ensuring both the Commonwealth and the claimants are protected from fraudulent claims or external threats Cost of continued system maintenance will not be able to be calculated until the new system is selected
UI Benefit Qualifications Key Key qualifiers qualifiers for for Kentucky Kentucky unemployment unemployment insurance insurance benefits benefits are are: : UI benefits are for individuals who are totally unemployed or who are working less than fulltime while seeking full-time work To claim benefits in Kentucky, you must have earned wages in Kentucky during your base period Benefits are paid to workers who lose their job through no fault of their own while they are attempting to return to the workforce Claimant must be able to work and available for work each week in order to qualify to receive benefits Claimant must also be making a reasonable effort to find new full-time work and provide details about their job search (one job search per week)
OUI Application Process Claimants can apply for benefits in one of two ways: via phone or website From kcc.ky.gov, claimants select UnemploymentServices, and then File or Access Your Claim. They are then redirected to the UI portal, where they can choose from options such as File New Unemployment Claim or Request Bi-Weekly Benefit Payment, among others. When filing a new claim or requesting bi-weekly benefits, the questions will populate based upon each claimant s answers to the previous question(s)
OUI Application Process contd Helpful Tips to Prevent Common Issues: File their initial claim for benefits as soon as possible after becoming unemployed or experiencing a significant reduction in hours Keep mailing address, phone number, and email address updated through the online claim portal Claimants are responsible for requesting benefits on time. Benefits are claimed every two weeks; E-Claims request benefits weekly First benefit request will be 13 days after the date the claim was filed Employer protest period Claimants continue to request their benefits while a claim is in the fact-finding phase or during the appeal process Weekly work search details are required during the benefit request process Step-by-step benefit application instructional videos can be found on the kcc.ky.gov website under Unemployment Services: Helpful Video Guides.
