RICHMOND, Va. — Governor Ralph Northam ordered the Virginia Employment Commission to invest $20 million to shore up its ability to process unemployment claims at a faster rate.
Northam directed the agency to hire 300 new adjudication staffers, make immediate technology upgrades, and complete a full modernization of the Commonwealth’s unemployment insurance system by October 1, 2021.
This action is supposed to help speed up resolutions for cases that have been flagged as fraudulent or ineligible. Those cases represent 4% of all claims.
The Commonwealth’s unemployment insurance (UI) system has successfully distributed $12.9 billion in benefits to more than 1.3 million eligible Virginians since the pandemic started.
Approximately 85% of Virginia applicants receive unemployment benefits within the first 21 days, making Virginia sixth in the nation—and first in the Mid-Atlantic region—for delivering unemployment benefits to eligible individuals.
If an individual’s initial claim is flagged for potential ineligibility or fraud, federal law requires the Virginia Employment Commission (VEC) to adjudicate the claim before proceeding with payment. Most individuals that are placed in the adjudication process are ultimately found ineligible for benefits.
“Virginia is a national leader in getting unemployment benefits to eligible individuals, but it’s clear that complex cases must be resolved more quickly,” said Governor Northam. “That’s why I’m directing the Virginia Employment Commission invest $20 million to significantly speed up its adjudication process and immediately implement long overdue technology upgrades. This action will address many of the issues that have caused delays and ensure that we continue to deliver relief to Virginians who need it.”