First phase of $72M project to modernize Nevada’s unemployment system complete

LAS VEGAS (KLAS) — Since the pandemic, Nevada’s unemployment rate has been the highest throughout the country. Right now, it sits at 5.3% while the national average is 3.9% according to the Bureau of Labor Statistics.

The massive influx of unemployment claims during the pandemic pointed out a big problem. With one of the highest unemployment rates in the country, Nevada had one of the oldest systems for processing claims.

The state then designated $72 million to modernize the system. Fifty-four million dollars in federal funds and the remaining $18 million from a fund that collects penalties from employers who don’t pay the required taxes for the unemployment program.

Phase one of the project launches the new system to state employers who use it for new business registration, wage reporting, payments, etc. while phase two would roll it out to claimants who use the system for claims and benefit payments.

After going offline on Monday, Feb. 12, 2024, for a preplanned break for the transition, the Nevada Department of Employment, Training, and Rehabilitation said more than 700 employers called them to get help before the new system came online on Tuesday, Feb. 20, 2024.

“The rollout was at 8 o’clock and we were about 12 minutes late on that. My heart was about ready to burst, and it rolled but things did not get caught up quick enough,” Director of the Nevada Department of Employment, Training, and Rehabilitation Christopher Sewell explained, about the short delay in getting the new system up for phase one of the project.

Kerry Towne was among one of the first employers to see the new unemployment system.

“This system seems like it is more of a platform to be a good communicate with the department rather than having to call them,” she said, explaining it was unlike the old system. “You were limited to certain things you couldn’t do. For example, the refund.”

While the old system stored data internally and relied on outdated coding, this new system is cloud-based with enhanced security and has the ability to handle multiple types of benefits.

The new system will require users to create a new login and a longer 14-character password. DETR encourages users to log in and make sure it works for them before they need to use it.

Phase one is complete and phase two, which launches for everyone, is expected to be complete by summer of 2025.

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