OKLAHOMA CITY — The vendor the state hired to deliver unemployment payments drew criticism Tuesday during an interim study.
The Oklahoma Employment Security Commission has a contract with Conduent to deliver unemployment benefits to claimants. Lawmakers and other officials were critical about how the company has delivered those benefits during the COVID-19 pandemic.
The criticisms ranged from charges to the unemployed for phone calls to long waits and benefit cards delivered with no funds on them and holds put on claims.
The company was also criticized for not being cooperative with state officials who had requested information about why it put holds on some claims even though the state had approved them.
The company asked the Oklahoma Employment Security Commission for a “friendly subpoena” to provide the data used to determine when the company put a hold on a claim.
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Paul Gates, a Conduent general manager for state and federal government business, said the subpoena request was due to privacy concerns.
“It is our request for a subpoena to allow us to give the information and protect us from claims that we violated individuals’ privacy,” Gates said.
Often times those suspensions or fraud holds are temporary in nature, said Jason Boswell, senior director for government payments for Conduent.
The claimant can be asked to validate his or her identity to make sure the transactions are valid, Boswell said.
Boswell said there is not a policy in place to notify OESC when the company puts a hold on a claim.
Shelley Zumwalt, OESC director, said the agency supports efforts to limit fraud, but the company “has not been as forthcoming as it could” concerning why it took certain actions.
She said her agency is not asking for transaction level data, but is seeking information as to why the company took certain action to limit fraud.
“It seems to me the state of Oklahoma should be the client,” said Sen. Chuck Hall, R-Perry. “They are the customer. They are the ones with the contract with Conduent as the customers. It seems strange to me the customer needs a subpoena to get information from the service provider.”
The way the company deactivated or froze accounts has been done with “a cleaver and it really needs to be done with a scalpel,” Zumwalt said.
Some fraud was the result of identity theft due to data breeches, Zumwalt said.
Lawmakers were also critical of charging clients 25 cents for calls after they had exhausted five monthly free calls to check balances.
The company has been “less than forthcoming” on fees it charges to claimants, Zumwalt said.
Sen. James Leewright, R-Bristow, asked how much money the company had made on the practice.
Boswell said he could not provide the information in the current forum due to competitive nature of the business, but was willing to discuss it in a different forum.
Gates said that prior to the pandemic, the company was meeting its requirements and answering phone calls in the allotted time as well as getting cards to customers.
But the pandemic created challenges that led to delays in answering phone calls and delivering benefits, he said. The company has now recovered after adding additional employees and providing employees with the ability to work from home, he said.
Hall said his office and others received calls from constituents who reported receiving a card with no money on it and then were charged for calling the company about it.
Zumwalt was also critical of the company’s decision not to provide benefits on site to customers who attended various help sessions her agency held across the state.
Zumwalt said the answer is not to eliminate the contract right now because it would result in disruptions to the agency. In addition, OESC has not experienced something that would require such a move, she said.
“Every conversation I had with Conduent feels like a battle,” said Secretary of Digital Transformation and Administration David Ostrowe. “I don’t want that kind of relationship with any vendor we have to deal with.”
Leewright said the company will need to have to provide better services or maybe the state needs to look for other companies that can.
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Q&A: Filing unemployment claims amid virus-related job losses
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How long does it take to get the benefits?
Typically, the wait time from the start of the process to when the applicant receives benefits is 12 to 14 days after they are approved. The approval letter could come up to 20 days after applying.
On March 19, Gov. Kevin Stitt signed an order that temporarily suspended the one-week waiting period before unemployment benefits can be paid.
What if I still technically have a job?
Employees who are not formally laid off but have their hours reduced to zero can still apply for benefits.
Full-time employees whose hours are reduced to less than 32 hours are considered part-time and eligible to file for benefits under certain conditions.
How long can I receive benefits?
The Oklahoma Employment Security Commission announced on July 27 that those who have maxed out their state benefits may now continue to receive regular state unemployment benefits for up to an additional 13 weeks.
Traditionally, those out-of-work may claim unemployment insurance benefits for up to 26 weeks per year.
What if I need additional assistance with my claim?
Assistance can be found at OESC’s 27 regional offices, which are continuing to see claimants in person — with masks required and social distancing in effect. Regional office staff also can assist claimants over the phone via their local office number.
Click here to see all American Job Center locations in the state.
How many Oklahomans filed for unemployment during the pandemic?
The Oklahoma Employment Security Commission has experienced record-setting or higher-than-average unemployment claims during the COVID-19 pandemic. The state unemployment rate was 6.6% in June after peaking in April at 13.7%. The unemployment rate in May was 12.6%. An estimated 116,602 were considered out of work in June; as of October, 884,252 initial claims for jobless benefits have been filed in Oklahoma.
