1. Welcome to Workforce 3 One U.S. Department of Labor Employment and Training Administration Webinar Date: July 30, 2015 Presented by: Office of Unemployment Insurance U.S. Department of Labor Employment and Training Administration

2. 2# Enter your location in the Chat window – lower left of screen

3. Moderator: Ericka Parker Organization: Office of Unemployment Insurance, U.S. Department of Labor 3#

4. Presenter: Charles Walkowiak Organization: New Jersey Department of Labor and Workforce Development 4# Presenter: Jodi Douglas Organization: Iowa Workforce Development Presenter: Josh Hawkins Organization: Utah Department of Workforce Services

5. 5# 1.USDOL Office of Unemployment Insurance  Review of BYE Technical Assistance 2.New Jersey Department of Labor and Workforce Development  Enhanced NDNH cross-match 3.Iowa Workforce Development  Data analytics and predictive modeling 4.Utah Department of Workforce Services  Employer payroll information cross-match 5.Questions and Discussion

6. Gay Gilbert, Administrator Office of Unemployment Insurance Employment and Training Administration 6#

7. 7 Earlier this year, ETA requested your state’s participation in a new technical assistance effort aimed at reducing BYE overpayments BYE errors are one of the two largest root causes of UI overpayments at 33.06% of dollars overpaid Many BYE errors are controllable and there are demonstrated effective strategies for preventing these improper payments including: Cross-matching with NDNH, including the use of recommended procedures in UIPL No. 19-11 Data analytics and predictive modeling tools to help prioritize hits Cross-matching with other data sources that may indicate a claimant’s return to work

8. States participating in today’s webinar were invited because your BYE rates are above the national average Our goal today is to reemphasize strategies that work and to request that your states consider additional steps you can take to better prevent BYE improper payments We also hope your states will help identify new and innovative BYE strategies that can be shared nationally #8

9. 9 In advance of this webinar, you were provided state- specific BYE root cause data to assist in your strategic review of actions your state can take to address this issue Following today’s webinar, ETA’s Regional Offices are ready to work to support your efforts, including reviewing your implementation of NDNH cross-matching, as well as the use of the recommended operating procedures outlined in UIPL No. 19-11 You are strongly encouraged to use the SQSP process to reflect new BYE strategies

10. Presenter: Charles Walkowiak Organization: New Jersey Department of Labor and Workforce Development 10#

11. 11 What is New Jersey’s New Hire Challenge? A Benefit Integrity Initiative Used to Prevent Claimants from Continuing to Collect Unemployment Insurance Benefits After The Claimant has Returned to Work

12. 12 DATA ELEMENTS USED  State and National New Hire Data  UI Claimant Data

13. 13 A NEW HIRE “HIT” CAUSES THE CLAIM TO BE “FLAGGED”  Return to Work date is automatically inserted in to the claim  Claimant certifies for benefits by Internet or phone system  Claimant is forced to speak with an AGENT  Agent presents specific new hire data to the claimant  Claimant will: 1. Discontinue the certification 2. Confirm he/she started a new job and is ineligible from the start date 3. Confirm that he/she started a new job but employment ended (separation issue???) 4. Indicate that he/she never started a new job (claimant will be paid but the case is referred to Benefit Payment Control for a follow-up investigation)

14. 14 RESULTS OF NEW HIRE CHALLENGE  Addresses 100% of New Hire Hits  Discontinue Paying Improper Benefits Earlier in the Process  Reduces Administrative Costs 1. Printing, Postage, Processing 2. Investigations, Setting Up Refund, Collections 3. Agent resolves issue rather than Investigator  Process is less intrusive to Employers  Reduction to TRUST FUND = PREVENTION

15. 15 COSTS:$106,000 (Programming Modifications Were Completed By Internal IT Staff) IMPLEMENTATION DATE: April 2011

16. 16 ROOM TO IMPROVE? There is always ROOM TO IMPROVE  Prevent first and detect when necessary!  Develop an automated process to more quickly and effectively address these cases.  Immediate Electronic Communication to Employer  Verify New Hire Data  Electronic Response from Employer  Evaluation by BPC  New Jersey Fraud Penalty is a ONE YEAR disqualification of benefits.

17. 17 TRUST FUND SAVINGS April 2011 – June 2015 New Hire Hits:375,776 Savings:$446.4M

18. 18 CULTURE Integrity belongs to CHANGE everyone! Employers & Claimants Operational Staff BPC Staff

19. 19# Presenter: Jodi Douglas Organization: Iowa Workforce Development

20. 20 Pondera Solutions 1.Who & How 2.Results 3.Future enhancements

21. #21 1.What Pondera Solutions Offers Iowa 2.Improper payments 3.Fictitious Employers 4.Results 5.Experience

22. What Does Pondera Have to Offer? #22

23. #23 Why this strategy was necessary Small team of Investigators for many years Debated “buy” vs “build” vs “contract” Issued a bid for a “solution” Pondera Solutions

24. #24 Customized Algorithms Incarceration Wages earned Multiple claimants using one IP address Multiple claimants using one bank account Multiple claimants at same address

25. #25 Fictitious employer schemes Fall ’13 Iowa requires online registration and quarterly filing Multiple quarters of wages added UI claims filed within 1-2 days Discovered through returned mail

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30. #30 Public records search Incarcerations Reports

31. #31 New Alerts Deceased Wage Cross Match ICERs SUTA Dumping

32. #32 Speaker:Jodi Douglas Title: UI Program Integrity Bureau Chief Organization: Iowa Workforce Development Email: Jodi.Douglas@iwd.iowa.govJodi.Douglas@iwd.iowa.gov Telephone: 515-281-5225

33. Presenter: Joshua Hawkins Title:BPC Supervisor Organization: Utah DWS 33#

34. Original Pilot 34 Phase I - Historical review in December 2012 All individuals with known overpayments established in 4 th quarter 2011 due to unreported work and earnings were transmitted to Equifax Equifax payroll covered 12% of said individuals

35. 35 Approximately 16 weeks sooner than the Model Cross-match Approximately 3 weeks sooner than the State and National New Hire Directories Original Pilot

36. 36 Phase II – Real time transmission of data Four data files of active UI and EUC filers transmitted in 1 st quarter 2013 Matches with Equifax were then investigated Original Pilot

37. 37 Equifax hit provided a good starting point, but it wasn’t everything Additional information could be located on The Work Number website Usually necessary to request a weekly breakdown Original Pilot

38. 38 36% of investigations resulted in overpayments 21% for New Hires and 8% for Model during same time frame Percent of fraud was less than the New Hire (62% vs. 83%) Quicker OP detection, earlier intervention and education for claimants who file while employed Original Pilot Results

39. 39 Second Pilot Facilitated through Do Not Pay (paid by Dept. of the Treasury) Biweekly files of active claimants Nine files submitted between 9/29/14 and 1/19/15

40. 40 Second Pilot 231 total investigations established Same process as before – investigators contacted Equifax for weekly breakdowns and utilized The Work Number website when needed

41. 41 Second Pilot Results Overpayments were detected over 5 months faster than traditional methods (typically a 6 month delay with the Model cross-match) 50% of investigations resulted in overpayments (less cases investigated but a higher rate of return)

42. Speaker: Joshua Hawkins Title: BPC Supervisor Organization: Utah Department of Workforce Services Email: jhawkins@utah.govjhawkins@utah.gov Telephone: 801-526-9326 42#

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