South Carolina Department of Employment and Workforce

1. South Carolina Department of Employment and Workforce Labor Commerce and Industry Subcommittee Briefing January 10, 2012

2. AGENDA • Disqualification • Seasonal Legislation • Suitable Work Legislation • Work Search Verification • Overpayments • Move from 20 - 16 Weeks • Pre-filed Bills

3. UI Disqualification Review10/1/2010 – 9/30/2011 Changing the current DEW policy for these four areas to a 16 – 20 week disqualification range provides the potential results: Recommendation conforms to current state statute

4. Disqualification Parameters for Misconduct

5. Seasonal Legislation Talking Points • Why is the South Carolina Seasonal Law out of conformity? - Spreads responsibility unevenly for UI charges paid by employers - Inequitable spreading of these charges violates both State and Federal law • Key aspects of the proposed seasonal legislation: - Brings South Carolina into Federal and State conformity - Accelerates the repayment of the federal loan

6. Seasonal Legislation • Department Policy Change – Option 2: Leave charging alone and remove seasonal wages if off-season - Requires significant computer changes - Reduces charges to seasonal employers - Does not relieve seasonal employer of charges unless they are the only base period employer • Implementation: IT Bid - external ($2.8M) • Operational for claims made in connection with the 2013 “Peak Tourism Season” • Provides adequate time for system reprogramming and applications to be made by businesses

7. Suitable Work Legislation • Department Policy Change: - After 4 Weeks: Must accept job offers that pay 90% of previous wages - After 8 Weeks: Must accept job offers that pay 85% of previous wages - After 12 Weeks: Must accept job offers that pay 80% of previous wages - After 16 Weeks: Must accept job offers that pay 70% of previous wages • Implementation: Internal DEW IT Project - Cost: $160K - 6 months

8. Work Search Verification • Department Policy Change: - Continue with 4 contacts per week (online, phone, in person) - Require 1 job search/contact per week to be conducted through SCWOS for electronic verification and linked to UI system - Inform claimants that work search is subject to random verification as a deterrent • Implementation: Internal DEW IT Project - Cost: $160K - Timeline: 3 months

9. Unemployment Benefits20 Weeks to 16 Weeks • Request for Information from Senator Bryant • Requires change in existing state statute • Impact: • DOL Feedback: DOL strongly disagrees but no legal ramifications in terms of violating federal law

10. Pre-Filed Bills • S. 1049 - Creates additional requirement of performing community service approved by DEW as a condition to receiving benefits.  • S. 1050 - Bill requires benefit applicants to undergo a drug test, the cost of which is borne by the applicant.  - DOL Feedback: Forcing someone to get drug tested and agree to community service violates federal law. Could result in decertification from receiving federal funds to administer the UI benefits programs.

11. Pre-Filed Bills • S. 1026 - Repeals the existing law and restores the requirement that part-time workers must continue seeking full-time employment to draw benefits. - DOL Feedback: DOL discouraged repealing the statute, but no legal ramifications in terms of violating federal law.

12. Overpayments • Integrity Task Force • Benefit Audit and Reporting Tracking System (BARTS) • State Data and Information Exchange System (SIDES) • DOL Office of Inspector General