Unemployment, Should The State Overhaul The Current System?

The state of Wisconsin is looking at overhauling the unemployment insurance program for a variety of reasons including: reducing fraud, easing the financial burden on the state and employers, and making the state's trust fund solvent.

A number of proposed changes to the state's unemployment insurance are being circulated in a memo from Unemployment Insurance Advisory Council and state Rep., Robin Vos (R-Rochester) backed the changes in a blog he did last week.

"The changes will strengthen the state’s U-I trust fund without burdening Wisconsin employers, and will protect those who deserve unemployment compensation," Vos said.

In the comments section of that blog James Anspaugh said:

I own a business and know the unemployment tax keeps me from hiring someone.

We cant be taxed more legally on unemployment but then they borrow and we are taxed on the interest to pay back. Also I know many people who are in a union and laid off collecting unemployment, but are working for cash on the side. If we cut unemployment back to 6 weeks and made low income 10,000 we would see 2/3 of Wisconsinites get a job and fast.

But another business owner, Keith Worst, disagreed with Anspaugh and said:

Saying you can't afford something due to taxes is a crutch. If you want extra help, go out there and sell some more. I am a business owner. When I want something, I either make cutbacks in certain areas and have people work a little more (with incentives) or I go bust my butt personally to expand sales. If you can't do those, then it's your own fault but you want to blame it on the government instead of reassessing your business plan.

Here are some of the proposed changes:
The way it is now: The new database infrastructure for DWD will require a claimant to fill out information for which businesses they applied for. However, there currently is no way for an employer to be notified if someone listed them as applied for a job.

Requested change: Require the Department to allow an employer to sign up to receive an electronic notification if someone lists their business as applied for a job.

The way it is now: Claimants can theoretically receive UI and SSDI payments at the same time. To understand why such "double‐dipping" may constitute fraud, please note the following general requirements for each
program:

• To receive unemployment insurance benefit payments, claimants must state that they are able to work.
• To receive disability insurance benefit payments, claimants must state that they are unable to work.

Requested change: Adopt D12‐05 as approved by the UIAC that would prohibit this practice.

The way it is now: Treatment of legal holidays for UI. Currently, claimants can claim UI on a holiday (such as Thanksgiving) for the purposes of benefits for that week, even with the business being closed. 

Requested change: Consider all State and Federal legal holidays as non‐working days for the purpose of UI if in the normal course of business the employer is closed.

The way it is now: Situations have arisen where police reports and business documents have not been allowed as evidence during UI hearings.

Requested change: Require the Department to create a standardized sworn affidavit witness form for hearings. This would allow for businesses to properly document an incident of an employee that would be presumed admissible during hearings. This will not absolve an employer of their duties during hearings. Also provide any necessary legal disclaimers.

The way it is now: The recession exposed the need for Wisconsin to build up its trust fund balance to avoid the need to borrow money from the Federal Government again.

Requested change: Link UI benefits to the unemployment rate of Wisconsin, as other states have proposed and the federal government does when it provides extended benefits.

What do you think of these changes?