Editorial: Virginia Employment Commission reforms provide help when it’s needed

Legislation signed into law by Gov. Glenn Youngkin this spring lays out reforms that should help make the Virginia Employment Commission — however belatedly — do what it’s supposed to: provide a safety net for Virginians in a time of desperation and need.

When the COVID-19 pandemic hit two years ago, it quickly became an economic and employment crisis as well as a health emergency. But the VEC, the agency that’s supposed to help people who lose their jobs and soon find themselves in dire circumstances, was woefully unprepared for the sudden spike in unemployment claims.

Instead of dealing efficiently with the hundreds of thousands of claims pouring in, the VEC was all but paralyzed. Some routine claims were processed fairly quickly, but anything that needed staff review, or any appeals, overwhelmed the system. The VEC website was little help.

People who called the VEC spent hours on hold. Many phone calls were never answered. People couldn’t find out if or when they would be getting the money they needed to help them pay their bills, keep their vehicles, feed their families and avoid being kicked out of their homes. Many of those who lost jobs were the working poor, people who couldn’t just telecommute and have Zoom meetings. Many in low-paying jobs had struggled to keep going even before the pandemic and had scant resources to help when their paychecks stopped.

A staggering number of unprocessed claims built up. It wasn’t unusual for an appeal to take nearly a year to be resolved.

About a year into the pandemic, the VEC hired more staff. It eventually paid out billions of dollars in unemployment claims and tried to improve its response to the ongoing crisis while scrambling to work through the backlog.

There’s no doubt that the pandemic was a big part of the problem. No one, at the VEC or anywhere, had foreseen the pandemic or its devastating effects. Unemployment claims spiked tenfold almost overnight.

But the crisis also put the spotlight on longstanding, chronic problems at the VEC that had nothing to do with COVID. Virginians had grown complacent during years of low unemployment. Some politicians believed that unemployment programs are a burden on business, giving money to people who don’t deserve it. So VEC reform was a low priority in Richmond.

VEC put off much-needed modernization of its technology and failed to strengthen its staff. When the pandemic hit, all the weaknesses made VEC unable to respond quickly and effectively. Its record for processing claims ranked worst in the nation.

As the pandemic wore on last year, the Joint Legislative Audit and Review Commission looked into problems at the VEC, eventually producing a scathing report recommending reforms. That led to the new laws that are now beginning to take effect.

The legislation, faulting VEC management and absent oversight by the Northam administration, creates a board to keep an eye on how VEC is handling unemployment claims, with an eye to avoiding backlogs. It calls for a resiliency plan so that if another crisis arises, the agency can gear up quickly. It puts more emphasis on the unemployed, rather than just on the businesses that pay payroll taxes and benefits. It establishes an ombudsman to help people making claims. It mandates reduction of paper records in favor of electronic data.

These changes sound like a good beginning. VEC has a new leader now, Commissioner Carrie Roth. The backlog is largely gone.

To avoid similar problems in the future, legislators will need to continue to support and monitor VEC and provide funds needed for the agency to modernize its technology, keep adequate staff and be poised to react quickly to changing conditions.

What happened in 2020 and 2021 makes it painfully clear how important the VEC is. Unemployment benefits are supposed to help people who suddenly are thrown out of work keep themselves and their families afloat until they can find new jobs. This vital safety net must be stronger and more resilient.