FEMA approves Nevada for Lost Wages Assistance unemployment | nnbw.com
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FEMA approves Nevada for Lost Wages Assistance unemployment

State taking over jobless call center duties from Alorica

Michelle Rindels

The Nevada Independent

The Department of Employment, Training and Rehabilitation office in Carson City on June 4, 2020.
Courtesy photo
EDITOR’S NOTE: This story was first published Sept. 11 by The Nevada Independent and is republished here with permission. For more Nevada news, including wall-to-wall coronavirus coverage and a constantly updating live blog, visit The Nevada Independent.

CARSON CITY, Nev. — Nevada has been approved for the Lost Wages Assistance unemployment program, although it is the last state in the nation to get the green light from the federal government.

The program promises eligible beneficiaries a $300 per week unemployment benefit add-on for three weeks, paid for from the Federal Emergency Management Agency (FEMA). The state also intends to apply for three additional weeks of possible benefits when the first round is exhausted.

President Donald Trump announced the program in early August, and Nevada said in late August that it had decided to apply. Officials say the delay came as the state analyzed the cost of participating, because the Nevada Department of Employment, Training and Rehabilitation has a staff shortage in its fiscal management division and because it was trying to prepare its state budget proposal simultaneously.

Eligible beneficiaries include claimants whose unemployment is COVID-related and who are receiving at least $100 a week in benefits through regular unemployment or the Pandemic Unemployment Assistance (PUA) program for gig workers and self-employed people.

When announcing the application, Gov. Steve Sisolak said he was disappointed by the program’s limitations and that Congress had not come up with a longer-term fix after a $600-per-week unemployment benefit add-on expired in March.

“Just because it’s the only option does not mean it’s the best option,” Sisolak said of the Lost Wages Assistance program at the time.

DETR said it could take four to six weeks to upgrade the system and start paying eligible beneficiaries retroactive to the week ending Aug. 1.

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RELATED: Nevada’s jobless numbers continue decline; 7,951 initial claims filed last week

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Cutting ties with call center vendor

Nevada is parting ways early with the contract vendor that staffed an unemployment call center but has also been accused by claimants of unprofessional service and an inability to resolve many issues.

The Nevada Department of Employment, Training and Rehabilitation announced on Friday that it would be transferring responsibility for the customer service call center from the Irvine, California-based company Alorica to state workers over the next 30 days.

Alorica workers had staffed a 100-person general inquiry line since mid-April and adjudicated claims in the federally funded Pandemic Unemployment Assistance (PUA) program for gig workers and the self employed.

“A growing number of claimants have eligibility in both traditional UI and PUA and this consolidation of call operations will allow for streamlined services for these clients,” the state agency said. “DETR and Alorica are focused on providing the best customer service for Nevadans seeking unemployment insurance benefits and have worked together to develop a transition plan to bring the PUA system into the state before it is set to expire at the end of the year.”

DETR said it was bringing on staff to work the state’s call centers, but didn’t immediately clarify whether the state was assuming all of Alorica’s duties or just some, or whether the state would have to pay for the duration of the contract in spite of the early wind-down.

Alorica was brought on on a temporary basis, with the intention of sending duties back to the state by the end of the year, state officials said.

The Alorica call center, enlisted to handle a deluge of questions and complaints from people who were out of work during pandemic-induced business shutdowns, faced criticism starting shortly after it launched.

Claimants said operators could only answer basic questions about unemployment, and lacked access to the state system or the authority to work through the specific issues holding up their payments.

Even after the system took on the task of processing PUA claims when that program launched in mid-May, claimants complained about service levels. Court-appointed special master Jason Guinasso wrote that if the state weren’t bound by a contract, it should have dumped the company.

DETR pointed to the unprecedented nature of the economic crisis.

“The special master’s report notes that no state was prepared for the impact COVID-19 would have on our state and economy. Our systems were never designed for unemployment of this magnitude,” said DETR spokeswoman Rosa Mendez. “DETR partnered with Alorica to operate the PUA call center and we appreciate the work they did.”

Barbara Buckley, who heads a “strike force” focused on addressing backlogged claims, had raised questions about keeping the systems separate for federally funded PUA and regular state-paid unemployment because many claimants have mixed work histories that leave questions about which program should be paying them.

DETR initially said it needed a separate system because of IT limitations on its existing unemployment system. 

But the agency also said it “underestimated” the number of people who would have potential eligibility in both programs.


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