Narrative: a. 3.

WorkForce West Virginia’s (WFWV) Unemployment Insurance (UI) Program is making progress in working through workload which occurred during the pandemic. The workload has steadily decreased in the past year due to the low unemployment rate, and the Agency is still working to clear backlogs in nonmonetary decisions, appeals and overpayment areas. While working to mitigate the backlog and ensure the current workload is processed in a timely manner, WFWV has used a two-team approach that involves staff working simultaneously on both the backlog and the current workload.  This process has allowed the agency the ability to work to clear the backlog without significantly impacting the timeliness of the current workload. 

The backlog was projected to be completed in early 2023. However, there are still pandemic era non-monetary determinations, lower and higher authority appeals workload remaining. During this rebuilding process, WFWV has worked to not only resolve all backlog but also restore the performance criteria West Virginia maintained prior to the pandemic.  Therefore, the strategic plan begins with the completion of all backlog items and focuses on improving the timely delivery of every facet of the Unemployment Program.  West Virginia has always taken pride in its ability to meet or exceed performance criteria associated with the delivery of unemployment benefits to the State’s unemployed. The Administrative Management Team continues to monitor the timeliness of initial claims, benefit payments, nonmonetary determinations, appeals, etc.  This process will allow WFWV to make changes immediately to compensate for any unknown obstacles that could potentially cause an area of performance to fail. In reviewing the appeals backlog, particularly Higher Authority appeals, the state has discovered that there are appeals that have been adjudicated but not indicated as such on the benefits system. Agency unemployment staff are reviewing appeals backlog reports to determine if unresolved appeals have been adjudicated and working with the Board of Review to properly resolve these appeals.  This process will provide an accurate accounting of which appeals are truly backlogged, so these hearings can be scheduled and completed.

For WFWV to evolve from the situation caused by the pandemic with a clear path forward, Agency initiatives must include various improvements to technology to increase productivity.  Although technology is key in many instances, the Agency must also invest in human resources as well.  For the agency to meet the challenges of a comparable economic decline, WFWV will not only need a skilled dedicated team of unemployment specialists, but also the completion of technologic endeavors such as a modernizing the UI System, call-centers to meet demand for information, and a mechanisms to ensure new staff are fully trained in an effective and efficient manner. As West Virginia and the nation recover from the pandemic and the repercussions left behind, it is imperative that lessons learned from this experience not be forgotten by states or nationally. West Virginia will need additional funding and assistance from the Department of Labor to not only ensure that new technology is adopted, but that states have the resources to maintain and attract a skilled workforce that can meet future service delivery issues which may arise.  These rebuilding efforts for West Virginia will be achieved only through effective modernization of UI Systems and having the ability to attract qualified individuals and maintain a well-trained and dedicated workforce.  Without technology and an investment in human capital, the high standards of performance in West Virginia cannot be maintained.  

WorkForce West Virginia’s priorities are aligned with the national priorities listed in UIPL 09-23. The pandemic was instrumental in revealing business processes, performance, and key functions that did not promote an effective and efficient UI Program and WFWV is working to rebuild and improve program performance. The agency participated in the Tiger Team consultative assessment and will begin implementing recommendations in FY 2024. WorkForce WV will also begin using IT Modernization funding provided by UIPL 11-23 to begin the process of modernizing the state’s UI systems and processes. The state’s vision for modernization as defined in the current RFP is focused on a microservice architecture, allowing for modular upgrades and enhancements, while improving uptime. The system will also be able to scale to a cloud environment, as needed, while being primarily hosted on a private cloud to manage operating costs. APIs will be created to seamlessly integrate with other WorkForce systems and operations. Customer service will be improved in the system with program staff being able to change business rules and public facing webpages. Program staff, with business analysts, will assess all processes and update as necessary. This modernization effort will replace the legacy mainframe system currently in use. The RFP is currently under review by the West Virginia Purchasing Division, having been approved by the Office of Technology. Additionally, WFWV is still maintaining a physical presence in various locations around the state so in-person assistance can be obtained if the need exists.

 During the pandemic, WFWV was forced to outsource calls to a corporate call center unfamiliar with unemployment and use in-coming staff that were not trained in all aspects of unemployment. These two issues caused more work on merit-based staff and delayed claim issues from being resolved quickly. The Agency has already begun to address this service delivery issue by establishing two in-house call centers which have the expertise to address claimant issues immediately and provide reemployment services to the unemployed quickly.  In addition, the Agency has implemented more intensive training for staff who are being on-boarded as well as all UI staff. This training includes utilizing NASWA’s learning management platform and monthly e-learning courses specific to WFWV unemployment procedures. These training tools will allow the Agency to respond to an influx of staff due to workload or retirements. In addition, mandating the NASWA training modules will allow staff to be trained in all facets of unemployment. This type of training will give staff an overarching view of the Unemployment Program in every area instead of their specific area of assignment. It has been recognized by the Agency that an overall unemployment knowledge base is greatly beneficial during times when the Agency suffers a mass influx of workload or loss of staff.

WorkForce West Virginia is dedicated to promoting and improving equitable access to the UI program for underserved communities. To that end, the Agency will utilize equity grant funding to expand and improve the collection of demographic data to identify potential inequality patterns and trends to inform decision making strategies for improving equity. The Agency plans to improve claimant communication and outreach to help underserved citizens access UI benefits, measure delivery of benefits and claimant experience to improve service delivery and develop a mobile application to improve access to UI applications. WFWV will also use Tiger Team funding to implement the recommendation for plain language standards to simplify communications.

A top priority of the Agency is supporting the reemployment of UI claimants and jobless individuals.  WFWV continues to use a combination of evidence-based strategies such as the WPRS profiling model and Job Search Assistance to identify and serve individuals that are selected for the RESEA program. Additionally, the Agency is incorporating an online virtual experience for these participants and self-scheduling to improve participation in the RESEA interviews, which will begin early in FY 2024.  

West Virginia’s RESEA State Plan mandates that participants of the RESEA program have an individual re-employment plan and that the Agency provides them with a variety of resources that support obtaining reemployment as quickly as possible. WFWV conducts subsequent RESEA interviews for all program participants, which includes eligibility assessments, a review of the initial re-employment plan, and additional re-employment services as needed. Additionally, all RESEA participants have complete access to WIOA services and other workforce system partner programs.  

Changes have been made within the Agency’s RESEA Program that include potential enhancements and best practices that may be implemented within the year.  The Agency has established a separate unit that is designated to handle the RESEA Program. The staff in this unit are trained in the processing of unemployment claims, general reemployment services, and conduct RESEA virtual interviews. Through the training, staff involved in RESEA become familiar with the eligibility review portion of the documentation used during the RESEA interview that prompts additional questions which are geared toward not only to the ability to work but the availability for work and the individual’s job search efforts.  It also includes questions that involve pension, retirement, and the receipt of worker’s compensation. Staff are trained to recognize potential eligibility issues during the RESEA process with emphasis on the importance of such recognition prior to improper payment of benefits. To further provide guidance for the RESEA Program and ensure improved integrity and employment outcomes, the new RESEA Unit has been provided a coordinator designated for oversight of the RESEA Program including the area’s productivity, performance outcomes, and grant expenditures. The improvements in the way the RESEA Program is monitored will enable the West Virginia RESEA Program to remain in compliance with the Department of Labor’s guidance. This change should also allow WFWV the ability to adopt general best practices and easily transform the RESEA Program into a program that provides statistical evidence that this type of intervention reduces the need for unemployment.

The Workforce Innovation and Opportunity Act (WIOA) has been implemented in the Agency’s local offices since WIOA’s inception. West Virginia’s WIOA Plan details specific attributes that address the goal of utilizing the Unemployment Insurance Program as a One-Stop partner. Developing the cohesive delivery of services between the partners as directed by WIOA guidelines was relatively straightforward for the state because WFWV’s UI and Employment Services staff are cross trained to assist individuals in all aspects of job placement and unemployment benefits. By providing access to a full range of services and colocation with partners, we can provide outstanding services to employers and claimants. This plan provides a step-by-step guide to assist claimants in returning to work, utilizing educational opportunities, and learning how to effectively network both in person and through social media to accomplish their overall goals.  West Virginia has committed to submitting a Combined WIOA State Plan in FY 2024 that displays the coordination within WIOA and the states unemployment State Quality Service Plan.

In 2021, legislation was enacted which established a Short Time Compensation (STC) Program in West Virginia due to be implemented by July 1, 2023.  WFWV launched the STC Program in January 2023.  This includes marketing the program to employers, providing a means for employers to submit plans for approval, a pathway for claimants to apply for STC initial and continued claims, and programming changes in the State’s Automated Benefit Payment System to accommodate the STC Program. WorkForce West Virginia has approved several STC plans since launch and continues to work towards educating the state’s employers about the benefits of the program.

In conjunction with the RESEA Program, WFWV utilizes early intervention and customer service in the design and deployment of WorkForce West Virginia’s Rapid Response team. This team is utilized to provide quick services to dislocated workers to transition these individuals into new employment as soon as possible. To accomplish this goal, dislocated workers are advised of the programs and services that are available to them such as reemployment and transition services, including resume development, unemployment information, and various training opportunities. The Agency has also submitted and supported bills based on the Model Work Search Legislation per UIPL 17-19 and will continue to do so in the upcoming legislative session. 

In coordination with the Department of Labor’s top priorities, WFWV has completed the task of incorporating an Integrity Unit under the Agency’s authority.  This unit’s main goal is to intensify and streamline the Agency’s ability to combat fraud, prevent improper payments, and detect and recover improper or fraudulent overpayments. To ensure the area operates without bias, the Integrity Unit operates outside of the Unemployment Division and answers only to the Acting Commissioner of the Agency. In addition, all activities involved with combatting fraud and ensuring accurate payments are housed in this area.  These areas include the Fraud Section, the Investigative Section, and the Crossmatch Section.  At this point the unit is fully operational.

WFWV utilizes strategies that were highlighted in both UIPL 22-21, Change 2 regarding “Additional Planning Guidance for the Unemployment Insurance State Quality Service Plan”. As required, WFWV has highlighted the specific tools, services, strategies, process improvements, and/or procedural changes adopted by West Virginia to combat fraud, verify identities, and enhance recovery efforts in the SQSP IAP Narrative. The Agency will also implement Tiger Team recommendations to improve program integrity, including enhancing the use of the Integrity Data Hub, ID verification which utilizes the national offering for Login.gov and the United States Postal Service, and securing claimant login.

In conjunction with the practices, technology, and changes in policy directly mentioned in the SQSP IAP, WFWV continues to improve and utilize tools and strategies as well as long standing methods of detecting potentially fraudulent activity such as the submission of claims to the Social Security Death Registry.  Due to the issues associated with claimants and banking accounts, WFWV worked with one of the Agency’s vendors to engineer a program that will “lock” banking accounts for twelve hours when a claimant or potential “bad actor” has attempted to register for direct deposit three (3) consecutive times unsuccessfully. This policy allows the Fraud Team the ability to review a daily list of “locked accounts” which can result in a team member either assisting a claimant with the direct deposit enrollment process, identify that the claim as a ID theft case, or concluding that a potential “bad actor” is attempting to hijack a claim and the benefits associated with that claim to facilitate payments being sent to a bank account not affiliated with the claimant. WFWV has continued its partnership with the West Virginia Division of Motor Vehicles (DMV) which is utilized for verification of identity. This agreement allows various staff members the ability to access DMV records for verification purposes.  Since the Agency has begun to require claimants to upload government issued photo ID, it is imperative that the staff have the capability to discern if a driver’s license is authentic or fake. This policy change requiring identity verification was implemented using NASWA’s guidance and due to fraudulent activity was necessary.  In addition, the partnerships formed during the Pandemic between various law enforcement entities and WFWV have been maintained and strengthened. In fact, the partnerships are resulting in actual prosecutions for fraudulent activities against the Unemployment Program in West Virginia.  The Agency anticipates that as these cases are publicized by the media fraud may be reduced in the state.

To assist the Agency with reducing improper payments and assist the employer community in finding employees, in June 2021 West Virginia reinstated the waiting week statewide and changed state unemployment policy to again require weekly job search activities for claimants in active filing status. Additionally, the Agency will be working to provide claimants with targeted automated messages to educate claimants on proper work search and document retention.  Automated reminders concerning job opportunities suited to their specific skill will also be sent through the Employment Service System. As mentioned previously, WFWV will continue to support Model Work Search Legislation.

Regarding the implementation of the various SIDES Modules, the Agency is making plans to utilize all aspects of the SIDES Exchange Systems.   The state’s top priority Tiger Team recommendation is to expand the modules used and to increase employer uptake in utilizing SIDES. WFWV has always been an advocate for the modules within the SIDES Exchange Systems since the informational templates are beneficial in the fact-finding needed by state adjudicators.  An additional benefit to the employer community is the ability for each employer to have immediate access to documents and postage savings for employers and the Agency.  

WorkForce West Virginia continues to address worker misclassification by educating the employers during field audits and when issuing letters of compliance.  The audit unit uses resources from participating in the GLDEP, such as the 1099-NEC data extract and the FUTA zero certification, to select field audits that are high risk for misclassification.  The audit unit also receives and reviews DOL site inspection reports to identify employers who may not be registered with the agency or may not be fully reporting. Wage investigations, internal referrals and external tips are also used to address worker misclassification.   The Agency  continues to work on staffing and training of staff to efficiently complete field audits.

Timely and accurate federal reporting has always been an Agency goal. Although most of the federal reporting was completed in a timely manner, the loss of knowledgeable full-time staff with almost all in staff in the Budget & Statistics unit responsible for submitting many reports being with the unit for less than one year,  has resulted in WFWV being submitting late or inaccurate reports. The Agency recognized the need for additional training on topics such as:  the reason for timely submission of the federal reports, methods to get assistance from the National and Regional Office, review of due dates, etc. and training was provided to staff.  To ensure federal reporting compliance and timeliness, the Agency is continuing training and having a seasoned staff member review all reporting. The Department of Labor can depend on the Agency to submit all federal with accurate statistics in a timely manner in the upcoming year.

The Agency will also address the incorrect recording of detection dates for non-monetary issues through a combination of on-line training courses for all staff involved in processing and adjudication of claims, and in-person training with staff who record detection dates incorrectly.  Agency management will be informed of instances where detection dates are recorded incorrectly, whether it is discovered through the BTQ process or other claim review, so these can be addressed directly with the staff responsible.

Quality performance in all unemployment functional areas is a major concern for the Agency.  The performance of timely intrastate payments has improved in the past year from 72.48% to 81.14% but is still short of the GPRA goal of 87%.  The detection of recoverable overpayments has also improved in the past year to 65.90%, which is above the GPRA goal. Actions implemented as part of the state’s corrective action plan for payment promptness and detection of overpayments will continue for FY 2024 and should cause further improvements. The percentage of employer tax liability determinations made timely is 84.10%, which is lower than the GPRA goal of 90%. Improvements in the staffing of the Employer Status Determination Unit and changes made to the state’s online employer application, which have been completed, will help to improve performance in this area. The agency also continues to look for methods to streamline and improve the application and liability determination process in order to improve performance.   

Although the Governor and Legislature of West Virginia awarded the Agency the ability to utilize exempt positions which afforded WFWV the capability to hiring individuals at higher salaries without approval from the Division of Personnel, staffing is still an issue.  Due to the pandemic and aging staff, WFWV continues to lose knowledgeable merit employees.  As private sector and government entities continue to have shortages of qualified staff, West Virginia has only been able to moderately increase staff.  One issue the Agency has noticed is that even though staffing levels have increased it is difficult to maintain the newer staff.  Therefore, the Agency is in a continuous cycle of training new staff.  Based upon nationwide statistics, it is quite possible all employers, whether private or government, will continue to struggle to maintain knowledgeable staff.  To mediate the staff turnover, WFWV is offering staff a stronger career mentorship program which will hopefully provide employees with a more professional outlook on their careers, enhanced skill sets to assist them in obtaining pay raises, and a ladder to higher level jobs within WFWV as they grow in their respective jobs.  

The Agency provides the following assurances:

•  Assurance of Equal Opportunity (EO).
•  Assurance of Administrative Requirements and Allowable Cost Standards.
•  Assurance of Management Systems, Reporting, and Recordkeeping.
•  Assurance of Program Quality.
•  Assurance on Use of Unobligated Funds.
•  Assurance of Prohibition of Lobbying Costs (29 CFR Part 93).
•  Drug-Free Workplace (29 CFR Part 98).
•  Assurance of Conformity and Compliance
•  Assurance of Confidentiality

The Agency also assures that staff has received training on Disaster Unemployment Assistance (DUA). DUA training for identified staff was completed on October 14, 2022. There will be additional training on DUA conducted in November 2023. WFWV has also developed a standard operating procedure for use during a major disaster.

The State of West Virginia, including the state workforce agency, WorkForce West Virginia, successfully migrated from the on-premises mainframe system to a vendor hosted Mainframe as a Service on April 16, 2023. The State’s Unemployment Compensation system resides on and operates from this mainframe. The new platform provides greater stability and up-time, as well as performance improvements. The primary mainframe server resides in Downers Grove, Illinois. The backup server resides in Omaha, Nebraska. The West Virginia Office of Technology conducted a Disaster Recovery and Business Continuity test for October 16, 2023, through October 20th, 2023. WFWV programming and functional personnel will be participating in that test. WFWV implemented Information Technology (IT) Contingency Plan on September 21, 2011.

In closing, the Agency hopes that the Department of Labor will understand the many hours staff are still working to resolve the workload and disruptions caused by the pandemic and moving forward to improve program performance. The pandemic unleashed hardships on the economy as well as all state unemployment programs.  West Virginia has always prided itself in achieving high performance marks and providing excellent customer service to the citizens of West Virginia.  Based upon the Agency’s dedication and work ethic, the Department of Labor can rest assured that the Agency will continue the rebuilding process to achieve its Unemployment Program mission critical goal, with the final objective being – “An Unemployment Program deliberately designed to utilize a specialized merit-based cross-trained workforce in conjunction with a modernized UI system where both are easily adaptable to program changes or an influx of workload associated with any economic decline or national disaster.”