Vt. reinstating work search requirement for jobless claims

Clouds sweep the sky at sunset in Woodstock, Vermont. (Gareth Henderson Photo)

Starting May 9, Vermonters on unemployment insurance will once again be required to look for work each week, as the state reinstates its work search requirement.

Since early last year, Vermont’s work search requirement was suspended due to public health concerns during the pandemic. At a Tuesday press briefing, Labor Commissioner Michael Harrington noted the situation had changed, with vaccinations going well and state restrictions gradually loosening. 

“This means more opportunities for Vermonters to return to work or seek new opportunities safely, and we know employers are actively seeking people to fill open jobs,” he said. In Vermont, COVID-19 cases continue to decline across all age groups, officials said Tuesday. 

Under the standard work search rule, those receiving jobless benefits must make three formal job inquiries per week, consisting of submitting a job application or a request for an interview. They must submit proof of those inquiries the following week when they file for benefits through the labor department’s online portal. Because of COVID-19, business outreach can be done by email or phone, and applications or interviews can be done virtually or by phone, Harrington said. 

“However, claimants must be able to provide proof of outreach upon request by the department,” he said. 

That weekly job search is required, unless the claimant has a COVID-qualifying reason preventing them from looking for work. Proof of that reason must also be furnished when filing for benefits, and be available upon request. 

Harrington also provided guidance for those in the federal Pandemic Unemployment Assistance program. He said anyone in the PUA program who isn’t self-employed, and isn’t an independent contractor or sole proprietor, must also perform a weekly work search. Others in the PUA program may face additional requirements down the road and should be ready, he added.

“Self-employed individuals, independent contractors or sole proprietors, should be prepared to report business engagement efforts or activities should the federal government require it at a future time,” Harrington said.  

About 30,000 Vermonters are currently collecting unemployment, and a number of vacant positions have been reported in multiple sectors in the state. 

“Research shows that the longer an individual is removed from the labor force, the harder it is for them to return, and the business community across Vermont continues to report labor shortages across all sectors and industries, so we are hopeful that claimants will be able to find safe and meaningful work relatively easily,” Harrington said. 

He added that state health experts have worked with businesses to minimize risk and ensure people can return to the workplace safely. Those wishing to learn more about the work-search requirement can visit the labor department’s website. Upcoming virtual town halls and other department programs will be available to help claimants during this process.

— Gareth Henderson

Vt. recalls thousands of incorrect 1099-G tax forms

The state of Vermont is recalling tens of thousands of incorrect 1099-G tax forms issued to those who received unemployment benefits in 2020.

Due to a corrupted file, information from the Vermont Department of Labor's main frame resulted in errors in multiple 1099-G forms recently printed and mailed, according to Labor Commissioner Michael Harrington. Some included a name and social security number different from the recipient's. Out of the 80,000 forms mailed so far, about 55,000 were corrupted.

At Tuesday's press conference, Harrington explained that individuals began receiving 1099-G documents that either had the wrong name and address on the front of the envelope, or once opened, had the incorrect name and social security number on the document inside. The state is asking recipients to return all incorrect forms, and identity protection services are being offered for anyone whose information was compromised. Harrington also said the state is examining quality control measures for the short-term and long-term, including measures to ensure that forms being returned are reissued correctly.

"We're neck-deep in trying to move through this process as quickly as we can to get information to claimants and impacted individuals in an expedited manner," he said. According to Harrington, the labor department is sending out a follow-up communication which includes a pre-stamped envelope for returning incorrect forms.

This was the beginning of a process to issue a whopping 180,000 1099-G forms — an enormous increase due to the number of people who received unemployment benefits last year during the pandemic. On Tuesday, Harrington explained several factors add potential for error, including the fact that, due to the age of the main frame, many manual steps have to be taken during different processes. Additionally, benefits were released from multiple programs in 2020, and those programs reside on multiple computer systems.

The notification and outreach process about the incorrect forms should take place over the next two weeks, Harrington added.

— Gareth Henderson

Pressing on

Though many thousands of unemployment claims have cleared the pipeline in Vermont, some applicants have yet to see that much-needed check during the pandemic. 

Lawmakers continue to hear from, and follow up with, constituents whose claims haven't been processed. As of Tuesday morning, there were at least 10,000 Vermonters in that category, according to Rep. Charlie Kimbell, who represents Woodstock, Reading and Plymouth. Many of these applicants have more complicated claims, Kimbell explained, such as those who were employed part-time but also had their own business. Others applied to the Pandemic Unemployment Assistance (PUA) program for self-employed individuals, rolled out three weeks ago in Vermont, and haven't received benefits. Most haven't seen income in two months. 

"If they haven't gotten a check by now, they're desperate," Kimbell said. "Most people don't have more than 30 days in the bank." 

Some are contending with technological hurdles, said Windsor County Sen. Alice Nitka of Ludlow. She knew of one man who relied on the local library for his internet connection when he had to file for unemployment in the past, but, of course, the library is closed. The only technology he has is a flip phone. Overall, many are filing for the first time.

"It's just incredible frustration, sadness and worry," Nitka said. 

As these claims remain, there is a group of lawmakers trying to help directly, according to Kimbell. About 25 lawmakers have formed a legislative action team, which is working with the Department of Labor to get answers for claimants and find solutions. Kimbell, who is not with the group, said the action team took about 2,000 referrals from constituents and, as of Tuesday, had managed to resolve about half of those claims. 

Despite these difficult situations, it is reassuring to learn about the lawmakers who are taking a more direct role in helping with questions about applications. Hopefully, their efforts will help resolve even more claims in the coming days. The Department of Labor is continuing to add call center workers as they try to address claims more quickly. 

Within our systems of government and without, it is comforting to know there are still Vermonters out there trying to help people make it through these difficult times. Our communities have answered the call, and they continue to do so. The efforts of tireless volunteers with food shelves, senior centers and other organizations all over the state have been inspiring. Kind people are there to help their neighbors, including those still awaiting the assistance they urgently need. We'll press on as a community — no one has to go it alone. 

— Gareth Henderson