Congresswoman Susie Lee Pushes for Modernization of State Unemployment Insurance Systems

Press Release

Today, Congresswoman Susie Lee (NV-03) signed on to the Unemployment Insurance Technology Modernization Act, legislation that would make federal investments in state unemployment insurance systems to prevent fraud and address the widespread delays and technical difficulties that job seekers have encountered while filing for unemployment insurance. This legislation was introduced yesterday by Rep. Steven Horsford (NV-04) and Senator Ron Wyden (D-Ore.).

"Emergency unemployment benefits have been a life raft for thousands of Nevadans out of work because of COVID-19," said Rep. Lee. "Unfortunately, that aid did not come quickly enough for thousands of Nevadans due to fraud and widespread delays within the state department, which was unequipped to deal with the surge in claims. At a time when Nevadans needed speed, they experienced the opposite: it took several months for thousands to receive benefits while more are still waiting for their claim to be processed. That's not good enough. In moments of crisis like this pandemic, families need a safety net they can count on, which is why I'm supporting the Unemployment Insurance Technology Modernization Act."

The Unemployment Insurance Technology Modernization Act would invest in federal technology capabilities that all states could use to administer their own unemployment insurance programs. This approach would provide all states with access to state-of-the-art unemployment insurance technologies and would be more cost-effective than building 53 separate state systems. The legislation would also ensure that new systems are better-equipped to prevent identity theft and fraud. Specifically, the Unemployment Insurance Technology Modernization Act would:

Require the U.S. Department of Labor to work with technology experts to develop, operate, and maintain a modular set of technology capabilities to modernize unemployment compensation technology.
States will be able to use all of the capabilities or choose to use only those capabilities that meet their needs.
The updated technology will help states ensure timely and accurate delivery of payments and better identify fraudulent claims.
Prioritizes user experience, including by requiring consultation and testing with claimants, employers, State workforce agency staff, and other users.
Requires a study to evaluate unemployment insurance technology needs, with an emphasis on program accessibility and equity.
Establishes a new Department of Labor Digital Services Team to expand the Department's ability to assist states with technological issues.
Ensures the use of best practices in cybersecurity, procurement, and transparency during and after the development of the technology capabilities.
Includes accessibility requirements for online claim-filing systems.
Ensures that the new technology capabilities do not rely on automated decision systems that may produce biased results without impact assessments and public input.

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