IDES Staffers Say Orchestrated Slowdown Exists at Agency
Amidst record demand for services, IDES agency heads say they dont know why the appeals department is handling a fraction of the cases it did at this time last year. Staffers say the delay is intentional.
by Lee Williams
Amidst record demand for services, IDES agency heads say they dont know why the appeals department is handling a fraction of the cases it did at this time last year. Staffers say the delay is intentional.
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CHICAGO An orchestrated work slowdown at the Illinois Department of Employment Security is delaying unemployment checks for jobless workers and forcing businesses to pay higher unemployment insurance rates.
Employees from the agencys Chicago headquarters told the Institute about the purposeful delay by calling the Last Honest Man Tipline. Their claims are corroborated by data obtained through a Freedom of Information Act request, which details the number of cases sent to the departments Board of Review the last appellate body within the agency between January 2009 and January of this year.
The data shows the board received an average of 1,447 cases per month until the monthly caseload dropped to 416 in September 2010 when statewide unemployment rates hovered around 10 percent.
October, November and December 2010 caseloads also were well below the monthly average, and it appears the caseload this month will fall below the pre-September average, too.
Whats causing the slowdown? IDES employees who spoke with the Institute on the condition of anonymity said it may be bureaucracy, frustrated staff or simple laziness.
Weighing claims
Theres a balancing act of sorts in place at the IDES: the rights of the employee versus the rights of the employer.
The agency is supposed to ensure that everyone who receives unemployment checks is eligible for the benefit, and that disputes regarding these benefits are handled promptly.
Once an initial claim is decided, workers who believe they were unfairly denied unemployment benefits, and businesses that believe they were unfairly ordered to pay frivolous unemployment claims, have two opportunities to appeal.
The first outlet for appeal is a hearings referee who, as the name implies, conducts a hearing that can include testimony from the worker and the employer.
If either side isnt satisfied by a referees decision, the next step is appealing the agencys Board of Review, the last appellate body within the agency. Both the referees and review board members are attorneys and state employees.
The one thing both parties hope for is a quick resolution to the appeals process.
For the worker, this means faster access to some cash.
For the employer, a quick decision can mean lower unemployment insurance rates.
Unlikely explanations
Peter Zaper, chief of the Board of Review, admitted there is a problem getting cases to his 18 attorneys. However, he stopped short of calling the problem an orchestrated obstruction.
There has been difficulty getting files from downstairs, Zaper said. I am not privy to the info about what is going on. I am inquiring all the time about getting sufficient cases here. Were doing the best we can to get cases up here. It has been a problem getting cases, but I am not aware of any work slowdown or stoppage.
Zaper said a lack of staff in the Appeals Division may have a role in the holdup, but he was unaware of any layoffs, resignations or mass firings in September.
Perhaps the interns went back to school? he suggested.
The data tells a different story.
In 2010, there appeared to be no post-intern slowdown. If interns were the cause, then interns by themselves they would have been processing in excess of 1,000 cases per month in the months preceding September.
Zaper agreed that the departmental delays could cause workers appealing denials to face longer delays and businesses to face higher unemployment insurance rates.
Of course, but you need to talk to [Acting-Appeals Division Chief] Stanley Cygan and our director, Zaper said. Im sure theyd reiterate the same thing I said.
Cygan did not return calls or e-mails seeking comment for this story.
When attempts were made to contact IDES Director Maureen ODonnell for comment, her spokesman, Greg Rivara, refused to arrange an interview.
Im not comfy with that, Rivara said. My job is dealing with the public and the media.
Rivara instead asked twice for the Institute to reveal the names of confidential sources, and said he was not aware of any delay until contacted by the Institute.
[The number of cases is] certainly higher at the beginning of the year, Rivara said. Im trying to determine what might cause that. Right now, I dont have enough info to explain the anomaly. Anecdotally, certainly I cant say certainly, case demand is up across the board, but theres a break right there. The break Im looking at really occurs. I dont have a definitive explanation for the break.
Rivara, too, suggested interns returning to school or summer vacations, not an orchestrated effort, could cause the delay.
Quite honestly, when service demands have hit an all-time high, although disconcerting, I dont know if its nefarious, Rivara said.
The cost of the slowdown
As Executive Director of the Illinois Coalition for Equal Justice, Joe Dailing has witnessed firsthand how bureaucratic infighting can hurt folks waiting to pay rent or buy groceries with an unemployment check.
It is impacting people who are very vulnerable and at a difficult time, who are depending upon that money to survive, said Dailing, whose organization provides legal services to low-income clients. Its unfair. Whenever administrative processes get slowed down, both sides are hurt.
Delays in the appeals process can also mean businesses will be forced to shell out big bucks on unemployment insurance, said Jay Shattuck, executive director of the Illinois Chamber of Commerces Employment Law Council.
Unemployment insurance rates are based on how much supposed unemployment a business causes. In the eyes of the state, the more unemployment caused by an employer, the higher the rate.
But what this also means is that businesses waiting to dispute a frivolous claim can see their unemployment insurance rates skyrocket while waiting for the process to move forward.
It behooves the employer to get their case handled quickly and correctly, to make sure theyre not paying for benefits that are frivolous, Shattuck said.
Shattuck said he has confidence IDES Director ODonnell would correct the slowdown.
It may be frustration of the workers, but its something management will have to take care of, he said. I think [ODonnell] will deal with it as any manager would have to deal with it. Its unfortunate. Hopefully it wont continue.
Small business owner Gerry Gardiner said he nearly made a fatal mistake several years ago when he allowed an employee who was experiencing personal problems to resign and file for unemployment benefits that he did not contest.
Months later, he fired another employee for cause.
Before you know it, I had two claims on my record in the same fiscal year, said Gardiner, who owns 709 Cut Rate Package Liquor, in Springfield. For IDES, it was a huge red flag. My rates went from 2.9 percent to 7 percent, the highest you can possibly pay.
Gardiners unemployment insurance costs climbed to $7,200 annually, up from the $1,200 he had paid before.
It was insane, he said. I had to dip into my personal savings. No business this size can afford a hit like that.
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