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Gov. Northam directs VEC to invest $20M to speed up processing of unemployment claims

The money will support new staff and modernization of the benefits system

Some still aren't getting unemployment benefits in Southwest Virginia

RICHMOND, Va. – Virginians who filed for unemployment may not have to wait as long as anticipated to receive benefits.

Gov. Ralph Northam directed the Virginia Unemployment Commission (VEC) to invest $20 million to improve how quickly unemployment claims are processed.

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Northam created this executive directive in order to speed up the resolution of cases flagged as potentially fraudulent or ineligible, which account for about 4% of all Virginia claims.

“This action will address many of the issues that have caused delays and ensure that we continue to deliver relief to Virginians who need it,” the governor says.

Through Executive Directive Sixteen, the VEC must do the following:

  • Hire over 300 additional workers: Northam is looking to increase the number of adjudications processed per week from 5,700 to 10,000 by June 30 and then 20,000 by July 31. In order to do this, VEC must finalize a $5 million contract to hire over 300 additional adjudication officers.
  • Continue investment in Customer Contact Center: VEC is directed to expedite an additional contract for services and staff for the current expansion in order to continue to provide information and support to Virginians with questions about their claims.
  • Modernize the benefits system: The VEC has been using a 41-year-old benefits system. Now, the agency must resume the $5 million state-funded project to upgrade its technology with Oct. 1, 2021, as the target finishing date.

“As we move into the next phase of our recovery, the Governor’s actions will create additional capacity for processing the historic number of claims with indeterminate eligibility,” said Chief Workforce Development Advisor Megan Healy.

For more information, click here.


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Nicole Del Rosario joined WSLS 10 in August 2020.