NYSDOL and the COVID‑19 Pandemic:
Leading and Learning Through Crisis

Introduction

Message from the Commissioner of Labor

The New York State Department of Labor’s (NYSDOL) response to the COVID-19 pandemic has been nothing short of extraordinary. From the first day of lockdown, to the first day our businesses reopened their doors, NYSDOL exceeded all expectations and showed the world what is possible when individuals and organizations unite in service to a common goal. Through this spirit of collaboration, along with a generous amount of inventiveness, determination, and self-sacrifice, we rewrote the book on crisis response without undermining our commitment to protect New York’s workers and businesses.

This report serves as both a chronicle of our response to the COVID-19 pandemic, and as a testament to the industry and dedication of our DOL family and our partners in government and the private sector*. The accomplishments detailed in the following pages would not have been possible if not for the thousands of workers who sacrificed so much of their own time to keep the engine of this recovery running. I am deeply grateful to have been surrounded by so many selfless people during this extraordinary period in our lives. NYSDOL’s response to the COVID-19 pandemic will stand as one of the proudest moments of my time as Commissioner of Labor.

* All private sector partners and vendors are listed in Appendix 2.

– Roberta Reardon, Commissioner for the New York State Department of Labor

The Impact of COVID-19 on NYSDOL at a Glance

Unprecedented. A word that’s been used frequently to describe the COVID-19 pandemic and its impact on the world. At the New York State Department of Labor, that word took a new meaning as we faced a once-in-a-generation crisis that impacted workplace safety, the livelihood of businesses, and, especially, a tsunami of out-of-work New Yorkers in need of unemployment insurance (UI) and other federal benefit programs. The charts below shed light on just how unprecedented the time was.

But numbers only tell part of a story. This report examines NYSDOL’s response to the greatest economic crisis of our time: how we navigated early adversity to help New Yorkers stay afloat, and how we later managed the transition of department focus from UI delivery to the task of getting New Yorkers back to work.

Section 1 The COVID-19 Pandemic and Unemployment Crisis’s Impact on NYSDOL

On March 1, 2020, the first New York State resident tested positive for the novel coronavirus-2019, commonly known as COVID-19. Though smaller outbreaks had occurred on the west coast, New York would be the first state in the nation to feel the significant impact of the COVID-19 pandemic. When pandemic-related shutdowns forced businesses across the state to close, millions of New Yorkers were left jobless and facing an uncertain future.

Almost overnight, the New York State Department of Labor (NYSDOL) found itself with the challenge of distributing unemployment insurance (UI) benefits to millions of new customers. NYSDOL knew right away the problem it faced was beyond anything it had ever seen before, and beyond its capabilities at the time. With an outdated UI system, inadequate staffing levels, and millions of newly unemployed New Yorkers facing an uncertain future, the NYSDOL response had to be bold, comprehensive, and immediate. It would take a reimagined approach to hiring, communication, and security; it would require a complete overhaul of NYSDOL’s technological infrastructure; and it would call for inspired collaboration between partners in federal government, New York State agencies, vendors, and consultants. With the pandemic already weighing heavily on the hearts and minds of everyone, the organization did whatever it took to get New Yorkers their unemployment and pandemic benefits as quickly as possible.

The results speak for themselves: between March 2020 and March 2022, NYSDOL paid out $105 billion from six different federal benefit programs to nearly 5 million New Yorkers – more than every state other than California. When you consider the yearly average, this total represents a staggering 50 years’ worth of benefits.

This report examines NYSDOL’s response to the greatest economic crisis of our time: how NYSDOL navigated early adversity to help New Yorkers stay afloat, and how it later managed the transition of Department focus from UI delivery to the task of getting New Yorkers back to work.

The Pre-Pandemic Department of Labor

To see the full picture of how the pandemic impacted NYSDOL, it’s important to understand NYSDOL’s operational structure as well as the state’s labor market before the pandemic.

The mission of NYSDOL has always been to provide outstanding services to its customers – the workers and businesses that call New York home. NYSDOL helps New Yorkers find the careers they love by connecting them to employment, training, and up-skilling opportunities. It builds and supports New York’s businesses, helping them find qualified workers and keeping them informed about tools and incentives to make their businesses thrive. And it empowers and protects New York’s workers by supporting the unemployed and by ensuring all workers have a safe workplace where they receive a fair wage. In the months preceding the pandemic, New York State was experiencing record low unemployment.

Because of the low unemployment rate, in February 2020, the UI division staffing level was also the lowest it had been since the turn of the century; most staff were Telephone Claims Center (TCC) agents. With 140,000 New Yorkers receiving UI during the first week of February 2020, TCC received 25,000 calls with few reports of callers having difficulty reaching an agent. Similarly, there were fewer than a dozen claim-specific inquiries sent to NYSDOL’s social media platforms each month pre-pandemic.

Perhaps most notable about this time was where NYSDOL was in its UI system modernization process. NYSDOL was in year two of a multi-year, top-to-bottom overhaul of a UI infrastructure that was, like other state systems through the country, woefully outdated. With the project years from completion, much of the modernization efforts were not yet in place when the pandemic hit.

New York State’s pre-pandemic record low unemployment and record high job opportunities didn’t necessitate high staffing levels in the UI division– and, in fact, doing so would have been a costly and irresponsible use of taxpayer resources. And while the UI system was in the process of being transformed, it was meeting the needs of New Yorkers receiving benefits at that time. Then the pandemic hit, and everything changed.

In April of 2019, the statewide unemployment rate fell to 3.7%, a 43-year low. In February of 2020, just a month before New York State shut down, the unemployment rate was at 3.9%. Just two months later, in April of 2020, the unemployment rate would hit 16.2% before peaking at 16.5% in May 2020.

The Pandemic Impacts New York State

Meanwhile, the virus spread unabated. In New York State, it took just over two weeks for COVID-19 to shut down most of the state, sending record low unemployment numbers soaring to record highs almost overnight. Below is a comprehensive timeline of the COVID-19 outbreak in New York State:

March 1 The First Case in New York State

As March 2020 begins, the growing anxiety of a COVID-19 outbreak is evident in nationwide shortages of hand sanitizer and disinfectant wipes, while other consumer goods like toilet paper and paper towels have become scarce as people prepare for the worst. The first U.S. case had been confirmed a month earlier, and the CDC has declared COVID-19 is heading toward pandemic status. With all eyes on China and the outbreak on the west coast, international travel to New York remains free-flowing, and among those traveling from abroad is a 39-year-old healthcare worker from Manhattan who has returned from a trip to Iran, the epicenter of the Middle Eastern outbreak. A week later, on March 1, 2020, she becomes the first confirmed case of COVID-19 in New York State.

March 7 State of Emergency Declared

In one week, the number of confirmed cases in New York jumps to 89. Then–Governor Andrew Cuomo declares a state of emergency in response to the rapidly ballooning infection rate, but with cases popping up outside the New York City metropolitan area, it is already apparent the virus will not be contained.

March 13 Executive Order Waives Waiting Period for UI claims

In two weeks, New York tops 400 cases, averaging 50 new cases a day. The effects of the pandemic are already being felt in businesses across the state; in response to the rapidly growing number of UI claimants, which, by the end of the pandemic, would amount to nearly 5 million people, an executive order waives the seven-day waiting period for UI claims — the first executive order that would specifically impact NYSDOL. Meanwhile, then-President Donald Trump declares a national emergency. The pandemic is here.

March 16-19 The Shutdown Begins

Schools close statewide, forcing parents to choose between paying for childcare or staying home with their children. On-premises service for restaurants and bars is suspended; movie theaters, gyms and casinos are closed. Businesses requiring in-office personnel are directed to reduce workforce by 75%. Layoffs occur everywhere, including in industries that were previously considered recession proof, like health care and food service. NYSDOL experiences an immediate spike in UI claims, calls to the TCC, and website and social media traffic.

March 18 Families First Coronavirus Response Act Becomes law

The federal government enacts the Families First Coronavirus Response Act (Families First), P.L. 116-127, into law, which requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. For UI purposes, Families First encourages states to adopt flexibilities by easing programmatic eligibility requirements.

March 20 New York State on PAUSE

With New York averaging nearly 1000 new cases a day, the “New York State on PAUSE” executive order is signed. This marks the final step to full, statewide lockdown with a series of directives that were unthinkable weeks before. The PAUSE requires all non-essential businesses to close, and all non-essential gatherings of any size or any reason be postponed. Six-foot social distancing guidelines are mandated wherever essential services are provided; public transportation is to be avoided unless absolutely necessary; and sick individuals should not leave their home unless it is to receive medical care.

March 27 The CARES Act Crash

The federal government enacts Coronavirus Aid Relief, and Economic Security Act (CARES Act), P.L. 116-136, becomes federal law, creating three brand new unemployment programs, each with new eligibility requirements, administered by individual states, and effective immediately with the ability to date claims retroactively. Implementation is instantaneous; states have no time to prepare their systems as the public demands the benefits promised by the federal government. As a direct result of the CARES Act, UI claims in New York State and across the country, calls to the TCC, and website and social media traffic skyrocket.

Record low jobless rates combined with an ineffective federal response to COVID-19 created a perfect storm that left the state unable to manage the outbreak and in a desperate position once the lockdowns began. The CARES Act provided much-needed relief to the nation’s unemployed, but for NYSDOL, it would come to present yet another challenge for an already overburdened UI system.

When the CARES Act was signed, New York was already the epicenter of the pandemic. As a result, NYSDOL was under immense public pressure to implement the programs and make payments to eligible individuals – many of whom had been without income for nearly a month.

CARES Act Introduces New Federal Programs

On March 27, 2020, , the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, was enacted, creating three brand new unemployment programs with new eligibility requirements: Pandemic Unemployment Assistance (PUA), Pandemic Emergency Unemployment Compensation (PEUC), and Federal Pandemic Unemployment Compensation (FPUC). Additional unemployment programs would follow later that year.

The federal unemployment programs were created with intentionally relaxed eligibility to ensure people who might not normally be eligible for UI benefits could receive a financial lifeline during the pandemic. In addition, the programs were not held to the same identity and proof-of-work standards as regular UI. Once signed into law, these programs took immediate effect, giving states no time to prepare their systems and little guidance on how to implement them, leading to an increase in fraudulent claims on these programs. NYSDOL began accepting PUA applications on April 5, 2020, issued the first week of FPUC payments on April 6, 2020, and began notifying individuals of potential eligibility for PEUC on April 12, 2020.

Even before the CARES Act took effect on March 27, 2020, NYSDOL phone lines were overwhelmed with inquiries about confusing and new federal programs that constituents heard about on the news. Weekly calls increased from 50,000 before the pandemic to 8 million at its height.

In addition to PUA, PEUC, and FPUC, the federal government created additional programs with differing eligibility throughout the following year — including Extended Benefits (EB), Mixed Earner Unemployment Compensation (MEUC), and Lost Wages Assistance (LWA) — all of which were required to be implemented while record-high UI claims were being processed and paid out. NYSDOL operationalized the following programs between March of 2020 and January of 2021:

PUA

Pandemic Unemployment Assistance

Available Jan 2020 — Sep 2021

A temporary program that provided support for Americans who were unable to work due to the COVID-19 pandemic but did not qualify for traditional UI, including individuals who were self-employed, independent contractors, gig workers, and more.

PEUC

Pandemic Emergency Unemployment Compensation

Available Mar 2020 — Sep 2021

A temporary UI benefit extension that extended the number of weeks a customer could receive UI benefits from 26 weeks to up to 56 weeks, depending on the original claim date.

FPUC

Federal Pandemic Unemployment Compensation

Available Phase I: Mar 2020 — Jul 2020;
Available Phase 2: Mar 2021 — Sep 2021

A temporary program that provided an extra $600 weekly payment to anyone who received UI, PUA, or PEUC during Phase I and an extra $300 weekly payment to anyone who received UI, PUA, PEUC, or EB during Phase 2.

Additional Federal Programs

LWA

Lost Wages Assistance

Available Sep 2020 — Dec 2020

A temporary program, created through a Presidential Memorandum on August 8, 2020, that provided an extra $300 a week in funds to individuals who received UI, PUA, PEUC, or EB from August 1, 2020, to September 5, 2020.

MEUC

Mixed Earner Unemployment Compensation

Available Jan 2021 through Sep 2021

A temporary program that provided an extra $100 per week to customers who received UI, PEUC, or EB and earned $5,000 or more a year in net earnings from self-employment. MEUC was enacted through the Continued Assistance for Unemployment Workers Act of 2020 (Continued Assistance Act), Consolidated Appropriations Act, Division N, Title II, Subdivision A, enacted on December 27, 2020.

EB

Extended Benefits

Available Jul 2020 — Sep 2021

A federal program that became available in July 2020 to continue providing weekly benefits to those who had already exhausted UI and PEUC benefits. This program gave claimants an additional 13 or 20 weeks of benefits, depending on the state’s UI rate during the prior three months. While Extended Benefits is a product of both state and federal law, federal pandemic-era legislation provided that these benefits are 100% federally paid so employers’ UI rating accounts would not be affected.

The myriad programs suddenly available offered millions of out-of-work New Yorkers hope for some much-needed relief, but because of the different eligibility requirements of the new programs compared to the traditional UI program, they could not simply file a claim through the UI phone system or web application. Just a few examples:

The traditional UI application system required customers who applied for UI to give their former employer’s information to complete an application, but most applicants who were eligible for PUA had no employer. Leaving the employer field blank caused the UI system to suspend the application until the applicant contacted a NYSDOL agent.
The UI certification system automatically stopped claims after they had paid out all 26 weeks (or 104 days) of benefits. PEUC benefits were available past 26 weeks of benefits, so new claimants were unable to certify on the existing system.
The UI application and certification system were built pre-pandemic. PUA customers were required to attest that their work was impacted by COVID-19 when applying and certifying but the system was not built to include that question in the workflow.

An added hurdle to the implementation of these new programs was their differing and fluctuating start and end dates. When the CARES Act expired in December 2020, significant work went into continuing to pay benefits through the programs as they were extended through the Consolidated Appropriations Act, into 2021, with one day to spare. In fact, New York State was one of the only states to continue paying claimants with no delay on January 1, 2021. These programs were once again extended in March of 2021 through the American Rescue Plan.

The rollout of federal aid programs was a double-edged sword for NYSDOL. While these vital programs provided desperately needed assistance to New Yorkers, the varying eligibility requirements and inconsistent start and end dates created unnecessary, burdensome complications and were the primary reasons why entirely new systems and processes had to be built. Under normal circumstances these upgrades would take months, if not years, to develop. But with so many businesses already temporarily closed and millions of New Yorkers needing benefits right away, NYSDOL knew that the UI overhaul had to be completed as soon as possible.

Other State Programs

Following Hurricane Ida and during the same timeframe as the expiration of federal pandemic benefits, New Yorkers in 11 counties began to become eligible for and receive Disaster Unemployment Assistance (DUA). NYSDOL also created and fully paid out two non-UI programs: the Excluded Workers Fund (EWF) in August 2021 and the Tourism Worker Recovery Fund in December 2021.

Policy and Program Changes

Developing new application and certification systems to address the new federal programs were far from the only challenges NYSDOL faced at the start of the pandemic, but some improvements could be made through policy changes. With such an unprecedented health emergency, federal and state government used executive orders and legislative policies to make it easier to qualify for unemployment benefits. To further expedite the UI process, “waiting weeks” and forfeiture days were waived for claimants. Claims were generally made effective back to the first day of unemployment, regardless of when an individual filed . Work search requirements, an obligation of all UI claimants with a few exceptions, were modified.

Safety concerns remained of utmost importance even as vaccinations became more widely available. Changes in partial unemployment eligibility would follow in January of 2021 and would be further amended in August of the same year. These adjustments allowed for even more flexibility for those who were willing to work part-time but could not commit to a full return to the workplace.

These changes to the unemployment system were necessary and addressed immediate problems, but also required significant behind-the-scenes and technical work to become a reality. To accomplish its goals, NYSDOL prepared to undergo a complete transformation.

Section 2 The Transformation of NYSDOL

The COVID-19 pandemic threw New York’s economy into turmoil and created circumstances at NYSDOL that were far beyond what could be reconciled with a standard response. An assessment of the situation revealed just how unprepared NYSDOL and other labor departments around the nation were for this crisis, and that drastic measures across multiple fronts were needed to get control of a problem that had already gotten far out of hand.

The urgency of the moment required a multi-faceted plan to increase the speed of NYSDOL’s transformation. NYSDOL would need to hire new employees across multiple divisions, with a focus on the greatest needs in the TCC. With so many New Yorkers out of work, NYSDOL started to rethink its approach to communications, both in the information produced and how the information was distributed it to the masses. Later, when the organization found some stability and began distributing record amounts of benefits, it would face the new challenge of stopping criminals who were stealing identities and filing fraudulent claims. And through it all, NYSDOL would need to continue to develop new standards to keep New Yorkers safe during a deadly pandemic.

For NYSDOL, the months ahead would be tumultuous, stressful, and at times chaotic. Up to this point, NYSDOL’s technological and telephony infrastructure was designed and deployed anticipating weekly claims in the tens of thousands, not the millions. And existing systems were not sufficiently scalable. Consequently, these chaotic times came to represent a period of transition in which NYSDOL showcased its resilience, imagination, and strength of character as it evolved almost overnight to rise to the challenges of the times.

[1] In December 2020, the Continued Assistance Act of 2020 provided that PUA claims could not be backdated to the first date of unemployment; rather such claims could be backdated to the latter of the actual first date of unemployment or early December 2020.

Approaching Staffing in a New — and Urgent — Way

NYSDOL’s needs weren’t limited to staff members answering phones; the Department needed help with basic technological and telephony infrastructure, claims processing, contacting customers to complete claims, and claims adjudication. The urgency of the problem required NYSDOL to not only hire hundreds of people, but also to find a way to expedite the multi-week training process new hires must typically complete before they can officially get to work.

NYSDOL addressed the training bottleneck by developing and implementing new programs and divisions, starting with its Employee Development & Growth Through Education (EDGE) division. This helped the Department to refine its standard training protocols while also providing an opportunity to examine the UI training schedule to look for opportunities to cut time requirements. NYSDOL was able to reduce the rigorous training schedule to only a couple of days, which solved one problem, but created another— the new hires had to learn an extremely complex UI system on the job. In total, NYSDOL trained thousands of permanent, temporary, and contracted staff to support the UI division, and although this helped to address staffing needs, the efficiency and speed of these new hires lagged behind where they would be following the typical weeks-long training process. NYSDOL needed more help.

The Department looked inward to fill the gaps. Hundreds of staff from across the agency were moved to better serve customer needs. At one point, almost 100% of the agency was performing UI work. NYSDOL also looked to other New York State agencies to help answer phone calls, assist with communication efforts, and more. It partnered with vendors to provide more support through contracted staff, as well as use their expertise to move the agency forward. At the height of the pandemic, NYSDOL had more than 5,500 workers – full time, part-time, and contractors – helping to answer phones and process claims.

With a newly bolstered team, NYSDOL started to slowly gain traction on the mountain of unemployment claims, even as this collection of new and repurposed staff members faced the dual challenge of learning a new position while also coping with working remotely for the first time. But even with hundreds of new staff members and thousands more internal and external staff providing support, the sheer volume of customers in need required everyone to make personal sacrifices. For months, dedicated staff worked weekends, nights, and holidays to chip away at the number of unemployment claims and get benefits to the millions of New Yorkers who needed immediate support.

NYSDOL could not have successfully processed and paid out the millions of claims without the support of so many New York State agencies, including the Department of Taxation and Finance, Department of Transportation, Office of Temporary and Disability Assistance, Department of Information Technology Services, Department of Environmental Conservation, and many more.

Transforming and Modernizing DOL Technology

In early 2020, NYSDOL was already two years into the complicated process of replacing and upgrading its antiquated unemployment system and mainframe. Then the pandemic hit, millions of people lost their jobs, and suddenly already outdated systems were overwhelmed by the flood of new unemployment and pandemic claims and calls to the TCC. NYSDOL needed to shift its upgrade plans into overdrive.

The urgency of the situation and the sheer magnitude of anticipated updates led to the creation of a new NYSDOL technology and innovation office, SIMS (Strategic Initiatives for Modernizing Systems). The SIMS team was put in charge of organizing and prioritizing tech upgrades and is one of the fastest growing teams at NYSDOL. The Department also worked hand-in-hand with leading federal technology partners to upgrade its systems.

One of the most important overhauls was related to the TCC. At one point during the pandemic, NYSDOL received over a million call attempts in a single day, far more than it ever had before. To better handle the staggering increase in caller volume, NYSDOL upgraded its Interactive Voice Response (IVR) system that handles routing callers to where they need help. These new upgrades allowed NYSDOL to answer millions of calls from March 2020 to March 2022. NYSDOL also incorporated a Customer Relationship Management (CRM) system to improve efficiency and workflow. Since then, NYSDOL has tied the IVR into the CRM system and anticipate, with time, it will continue to provide better customer service and management of UI claims.

The federal programs launched during the pandemic had different eligibility requirements than traditional UI, making it impossible for customers to use the existing UI application. Immediately the UI and SIMS teams, in consultation with tech partners, worked to create a brand-new application that allowed customers to apply just once for benefits from the UI programs. NYSDOL also stood up a new certification system for the PUA program and did a massive amount of work on the back end so that New Yorkers could seamlessly apply, certify, and receive benefits through these brand-new programs and extensions.

In June of 2020, NYSDOL began using chatbots with an eye toward providing immediate responses to frequently asked questions on the website and in NYSDOL’s social media messenger applications. This bot was upgraded in the summer of 2021 to what is now known as Perkins, named after NYSDOL’s first commissioner, Frances Perkins – the creator of the national UI system in 1935 as part of the Social Security Act . Perkins speaks 13 languages, answers FAQs, and handles processes that were originally only possible by speaking to a NYSDOL agent. Customers can request benefit verification letters and waivers, understand changes in payments, and more — and Perkins’ capabilities continue to expand.

At the time, NYSDOL also began using a secure e-signature tool, initially to help New Yorkers receive backdated payments without needing to call NYSDOL, but later for additional processes — from the UI overpayment waiver process to the Tourism Recovery Fund and beyond. The Department also launched an identity verification tool and process — a 21^st century approach to stopping fraud and ensuring that those who received benefits were entitled to those benefits.

Many of the new technologies and processes were put in place with an eye toward the future. When solutions were developed, they were done with consideration for future processes or challenges. Opportunities for improvement remain, but NYSDOL continues to move forward and help agencies around New York State and other State labor departments around the country enhance their tech solutions.

At the time of publishing, NYSDOL is halfway through its four-year unemployment system modernization, which will make the system more efficient, easier to use, and safer than ever before. In addition to improving UI security, the modernized system will also include an upgraded multi-platform contact center, expanded virtual assistant technology, expanded language access throughout the process, and an improved application process. This new system is built with the lessons learned since the start of the pandemic.

As NYSDOL moves forward, it does so with a renewed understanding of why it is important to keep the Department’s technology systems up-to-date and adaptable. From upgraded call centers to chatbots to cross-training, the changes made in response to the COVID-19 pandemic are examples of the adaptability and creativity NYSDOL regularly employs as it looks for new ways to best serve the people of this state.

Enhancing NYSDOL’s Approach to Communication

When the COVID-19 pandemic hit, millions of New Yorkers found themselves out of work seemingly overnight, many for the first time in their lives. As NYSDOL upgraded UI technology to handle the tsunami of new claims, it realized it was imperative to do the same with communications. Before COVID-19, phones and snail mail were the traditional communication standards for UI. When the crisis hit, those channels were rendered sluggish and unreliable to respond to the immediate needs and concerns of New Yorkers.

By putting a greater emphasis on a digital response, customers would be able to get answers to their questions faster, right from their smartphone or computer. To do this, NYSDOL enlisted an arsenal of digital and social tools, including:

Upgraded Website

At the start of the health crisis, many New Yorkers visited NYSDOL’s website directly to learn about UI benefits and job resources. What they found was antiquated, confusing, and in need of a facelift. The entire website was overhauled, shifting its focus to user experience by creating a layout that was streamlined, accessible, and easily understood. The new format removed any guesswork for the customers.

In addition to cosmetic makeovers, the content was re-worked to explain new processes and programs. NYSDOL also generated new factsheets, videos, and web resources like its partial UI calculator – all of which were developed in-house. There was particular emphasis on improving and developing information about the reapplications process, end of benefits, and how New Yorkers could protect themselves from fraud.

New Email and SMS System

NYSDOL began using a digital delivery system which expanded NYSDOL’s reach, providing information via email and text messages directly to customers to inform them of resources, claim information, additional government assistance, training and career opportunities, and more. Before the pandemic, customers only received a Determination of Benefits letter in the mail to inform them of what UI benefits they would receive. Once NYSDOL began utilizing its new email and SMS system in May 2020, customers received information every step of the way, including when a customer submitted an application, when customers were able to certify, when a claim could be paid, and more.

NYSDOL also used this tool to keep other stakeholders, including businesses, advocates, and legislative partners informed. Over the course of the pandemic, NYSDOL sent more than 100 million GovDelivery messages to New Yorkers.

Launch of Perkins

This chatbot played a major role in NYSDOL’s communications response during the pandemic. First launched in May 2020 and later refreshed with new languages and claim-specific functionality in August 2021, Perkins provides customers with important information, removing the need for calls to the TCC. Perkins continues to evolve to better assist customers and speak new languages.

Social Media Support

During the pandemic, NYSDOL’s social media platforms became an essential communications lifeline for New Yorkers. NYSDOL provided a constant stream of critical information to customers, who would share posts to help organically spread messaging in real time. Social media advertisements allowed NYSDOL to reach more people with essential information and target specific areas with regional employment opportunities, career fairs, and more.

NYSDOL also utilized bot technology via social media, including a bot to collect call-back requests from thousands of customers, a Question-and-Answer bot (an extension of Perkins), and social alerts to provide immediate email notifications in the cases of fraudulent activity or threats of self-harm.

Focus on Media Relations

As the epicenter of the pandemic, all eyes were on New York State’s response to the crisis. NYSDOL regularly provided updates to the media via press releases, statements, and responses to media inquiries to ensure New Yorkers received relevant information in a timely manner. The Commissioner of Labor joined the Governor and members of the administration to deliver critical updates to the press and the members of the legislature.

Newsletters Distribution

As part of NYSDOL’s renewed commitment to greater transparency and delivery of information, it launched several monthly newsletters:

Your DOL

Provides 500,000 New Yorkers with NYSDOL developments twice a month, including UI updates, training and learning resources, career opportunities, and more.

Business Buzz

Over 50,000 business subscribers receive monthly highlights on the many resources available across New York State to support them and New York’s robust economy.

DOL Digest

Delivers important NYSDOL updates statewide to elected officials to empower their offices to better assist constituents with unemployment, business, and labor matters.

Our DOL

An internal newsletter delivered to all NYSDOL employees, focused on what is happening within the agency, new training and technology updates, and how NYSDOL’s work impacts the lives of New Yorkers they serve.

NYSDOL’s communications evolution continues as it moves beyond the pandemic. By marrying effective strategies with technology, NYSDOL is now able to rapidly shift from reactive to proactive to ensure the latest necessary information is delivered to New Yorkers almost instantly. This was – and continues to be – especially vital in the fight against fraud.

Fighting Fraud

For most people, the pandemic was a tragedy; over a million Americans lost their lives and millions more lost their jobs. For criminals looking to exploit the UI system, however, the pandemic was an opportunity. As NYSDOL prioritized getting UI benefits to those in need as quickly as possible, the unprecedented number of claims being processed and amount of federal benefit money available made the system an enticing target for international cyber criminals.

Nationwide, criminals used real identities — stolen during previous data breaches involving financial institutions and major corporations — to file fraudulent UI claims and illegally collect benefits in the name of individuals who were not unemployed. In fact, of the 69 largest data breaches in U.S history, 73% occurred within the last 7 years, and 16 occurred during the administration of the CARES Act. The frequency of data breaches in 2020 and 2021 suggests international crime rings were stealing personally identifiable information with the intention of capitalizing on and defrauding pandemic-era relief programs, including the unemployment-related program with intentionally relaxed eligibility criteria and opportunity for claim back-dating. Data breaches, identity theft rings, and sophisticated pandemic fraud became an international problem.

Before March 2020, NYSDOL’s experience with fraudulent UI claims was vastly different both in type and volume. Pre-pandemic, most UI fraud involved individual claimants willfully misrepresenting wages or employment status in their UI applications to either qualify for, or increase the amount of, UI benefits. By contrast, UI fraud experienced during the pandemic was often perpetrated by international organized crime rings using stolen identities to apply for benefits and route payments to fraudsters in sophisticated systems. The volume of identity fraud increased more than five thousand-fold, from 94 fraudulent claims totaling approximately $45,843 in 2019 to 489,604 fraudulent claims totaling approximately $3 billion in 2020. In 2021, there was another 1 million fraudulent claims totaling approximately $1.1 billion.

NYSDOL’s fraud prevention program recognized early on that criminal fraud rings were targeting New Yorkers who were employed in industries less impacted by the pandemic, as these individuals were not as likely to have an active UI claim. The presence of an active claim would have prevented the criminals from filing a fraudulent claim for the same person. People who work in health care, education, government, and non-profits were notably impacted by UI fraud. NYSDOL took swift action to prevent more of these types of fraudulent claims from being paid.

PUA, the federal program which provided support for Americans who were unable to work due to the pandemic but who did not qualify for traditional UI, was especially susceptible to fraudulent claims as it initially had few requirements to verify eligibility and allowed self-attestation of eligibility.

As desperately needed UI benefits and pandemic relief payments were sent to millions of Americans, municipalities scrambled to protect taxpayer money from criminals. To combat fraud and identity theft, NYSDOL worked alongside local, state, and federal law enforcement agencies, government agencies, claimants, and employers in New York State and around the country. Within the agency, the Office of Special Investigations enhanced its use of modern technology to identify and stop fraudulent claims. NYSDOL took effective measures to block payments to banks known to be used by cyber criminals.

NYSDOL also empowered the public to help combat fraud. This involved an exhaustive education campaign consisting of social media posts, videos, and public service announcements to help people protect themselves from fraudsters. Keyword alerts were utilized to get real time notifications when criminals attempted to defraud customers on NYSDOL’s social media accounts and access to certain social media platforms was blocked in countries with high levels of cybercrime. Additionally, NYSDOL developed a tool on its website for individuals to efficiently report suspected fraud, particularly if they received official communication from NYSDOL regarding UI benefits for which they did not apply.

Pre-pandemic, unemployment identity theft was almost unheard of. In fact, from 2016 to 2019, there were fewer than 10 known cases of identity theft fraud. During the pandemic, that figure skyrocketed:

2016: 1 case of identity fraud impacting more than 30 claims, leading to approximately $10K in losses

2017: 2 cases of identity fraud impacting 2 claims, leading to approximately $29K in losses

2018: 3 cases of identity fraud impacting 35 claims, leading to approximately $265,530 in losses

2019: 3 cases of identity fraud impacting 94 claims, leading to approximately $45,843 in losses

2020: 489,604 fraudulent claims attempted, leading to approximately $3B in losses

2021: 1,019,439 fraudulent claims attempted, leading to approximately $1.1B in losses

2022: 10,003 fraudulent claims attempted, leading to approximately $177,987 in losses

With a need to verify identities extending beyond existing measures, NYSDOL partnered with ID.me in February 2021. The tool allowed New Yorkers to submit their identity documentation safely and efficiently when required due to federal guidelines and/or suspected fraud.

This upgrade was particularly impactful for victims of identity theft who then filed legitimate unemployment benefit claims themselves and had to prove their identity.

Following the implementation of ID.me, the number of approved fraudulent claims dropped tremendously. During March of 2021, more than 488,000 fraudulent claims were filed; during July of 2021, when ID.me was fully implemented, there were just 3,300 fraudulent claims that came through NYSDOL’s system. Consistent with the national average, NYSDOL found that only about 5-10% of claims referred to ID.me were deemed legitimate.

Throughout the pandemic, NYSDOL paid out more than $105 billion in benefits to nearly 5 million New Yorkers. NYSDOL identified approximately $4 billion in unemployment fraud lost to identity theft during the pandemic. This figure was determined through an analysis of NYSDOL’s unemployment and pandemic claim data as of November 2022. Of that figure, $388 million was determined to be state UI funds, while the other $3.6 billion came from federal programs.

Scale matters: $4 billion amounts to 3.8% of what of what New York paid in benefits to help New Yorkers stay afloat, keep families safe, and keep businesses open during the pandemic. Equally important is how far NYSDOL has come in preventing and detecting fraudulent claims arising from identity theft. Now that the lure of the lucrative and extended federal programs has expired and NYSDOL’s fraud prevention and detection has strengthened, losses attributable to identity theft claims have slowed to a trickle.

Despite this unprecedented fraud, NYSDOL stepped up fraud investigations to stop $32.9 billion (as of November 15, 2022) in attempted fraud, implemented new technologies to combat fraud, and is making every effort to recover stolen funds, including half a billion dollars in fraudulent payments recovered in the past two years. Stolen funds can be recovered several ways, including through bank account freezes and criminal prosecution.

Through the efforts of NYSDOL in coordination with its federal and state partners and technological investments, fraudulent payouts decreased significantly, despite a continued high level of UI claims.

$319 million = average monthly fraud loss during the first 12 months of the CARES Act. Claims during this period: 6,838,472.
$42 million = average monthly fraud loss March 2021 – December 2021. Claims during this period: 1,734,747.
$342,000 = total annual fraud loss for calendar year 2022. Claims during this period: 611,895.

There have been arrests and charges in regions across state related to unemployment identity theft and fraud rings stealing pandemic-related benefits, some of which can be found in Appendix 1.

The knowledge gained and technology implemented in response to the staggering number of fraudulent claims led to more efficient and secure systems not only for UI, but also for similar programs, like the $2.1 billion Excluded Workers Fund. Across the nation, systems were put to the test. Collaboration among states, governments agencies, and the general public brought about improvements that will thwart fraudsters for years to come. NYSDOL continues to partner with local and federal law enforcement, the Secret Service, and the FBI, among others, to combat unemployment insurance fraud. After cases are referred for prosecution, the state works with law enforcement and prosecutors to hold the criminals accountable and recoup ill-gotten funds.

NYSDOL could not have responded to this onslaught of cybercrime without the help of agencies across the state and country, including the U.S. Department of Labor, Office of Inspector General; New York State Office of Inspector General; FBI; U.S. Secret Service; New York State Department of Financial Services; New York State Police; New York City Police Department; New York State Office of Attorney General; and District Attorney’s Offices across the state.

The Impact on New York State Businesses, March 2020 – December 31, 2021

While the effects of UI fraud were far-reaching, businesses were not charged for losses related to UI fraud. However, the unemployment crisis did have an impact on New York State businesses.

UI is a federal program administered by states, and by design, businesses pay into statewide UI trusts to receive required benefits for their employees who lost work due to no fault of their own. In early 2020, just before the pandemic began, New York State’s unemployment rate was at a record low and New York’s UI trust fund balance stood at nearly $2.7 billion.

The unprecedented number of claims filed during the pandemic meant that New York’s UI trust fund was quickly depleted. In order to protect businesses at a rapidly changing and uncertain time of severe economic downturn, New York State chose not to charge individual employer UI accounts between March 2020 and December 2021. To maintain statewide UI benefits for New Yorkers desperately in-need and to comply with federal law, the New York State Unemployment Insurance Trust used the loan process under federal law.

After Governor Hochul secured an unprecedented investment in New York businesses as part of her Fiscal Year 2023 budget, in September 2022, businesses began to play a role in paying back the debt that they were able to avoid during the height of the pandemic. The federal loan process requires that payment of accrued interest stemming from an outstanding loan balance be made to the federal government by September 30 of each year until the debt is paid. As such, the Interest Assessment Surcharge (IAS) was used to ensure there was enough funds to pay interest owed and to spread out that cost over time.

Contributing employers will pay annual IAS payments until the federal debt is paid off or until the loan is forgiven. In 2022, the IAS rate was .22% (or about $27.60 per employee) and in 2023, the IAS rate decreased to .18% (or about $21.60 per employee). However, because of New York State’s relief in employer payments during the pandemic, businesses saved an estimated $826 per employee between 2020 and 2023.

New York State continues to explore ways alleviate the impact of the pandemic on businesses, with Governor Hochul’s Fiscal Year 2024 budget including transformative investments to support New York’s business community and boost the state economy.

Keeping New Yorkers Safe During the Pandemic

In addition to keeping New Yorkers safe from fraud, NYSDOL also prioritized keeping New Yorkers safe and healthy during the pandemic. NYSDOL helped the state’s businesses and workforce navigate a new world of fear and uncertainty in the workplace. The Department’s understanding of best safety practices was always shifting, and people struggled with the new reality of face coverings, quarantines, social distancing, and sanitation. It fell on NYSDOL to enforce these new safety guidelines and keep workers safe.

One of NYSDOL’s responsibilities throughout the pandemic was investigating allegations of wrongdoing related to new COVID-related standards. To open its services to a broader community, NYSDOL stood up a multi-lingual complaints portal to receive workplace complaints related to COVID-19.

Safety concerns in the workplace were an ongoing issue, and over the course of two years, NYSDOL conducted over 50,000 COVID-safety investigations to address complaints related to pandemic safety protocol violations. New Yorkers managed to follow protocols and flattened the curve, and soon thoughts turned toward the possibility of “reopening” the state.

The hopes for a reopened New York hinged upon making changes to account for the threat that COVID-19 still presented. NYSDOL collaborated with the Department of Health (DOH) to develop industry-specific guidance to keep workers safe and worked alongside the NY Pause Task Force and the Attorney General’s Office to enforce these guidelines and other COVID-19 safety and health standards across New York State. The next roadblock to a reopened New York was the lingering fears job seekers expressed about returning to the workforce. To assuage these fears, the Emergency Preparedness Law, Labor Law Section 27-c, was implemented, requiring all public employers in New York to have Continuity of Operations plans. This was soon followed by the groundbreaking NYS Health and Essential Rights (HERO) Act.

The NYS HERO Act was signed into law on May 5, 2021. Under the NYS HERO Act, Labor Law Section 218-b, NYSDOL in consultation with the DOH, developed extensive standards related to airborne infectious disease exposure prevention. These standards established benchmarks every employer must reach so that when future infectious disease outbreaks occur, their employees remain safe. Employers were free to create their own plans as long as they met the required benchmarks, or they could use state-issued exposure prevention templates. The airborne infectious disease exposure prevention plans must go into effect when an airborne infectious disease is designated by the New York State Commissioner of Health as a highly contagious communicable disease that presents a serious risk of harm to the public health. The NYS HERO Act immediately improved worker protection and provided guidance for future outbreak events, ensuring New York’s workforce remains safe, and businesses have a much better chance of staying open.

From early in the pandemic, the Division of Immigrant Policies & Affairs (DIPA) quickly reimagined outreach and communication to immigrant communities to ensure they were protected in the workplace. In 2020, DIPA rapidly created a virtual housing inspection process for farmworker housing to ensure that employers could access the H-2A Foreign Worker Visa Program and housing was available for farmworkers. DIPA updated informational materials and provided critical information to workers by text message. DIPA also worked with the DOH to develop outreach materials to prevent the spread of COVID-19, and with regional vaccine hubs to ensure that migrant and seasonal farmworkers were provided information on testing and vaccinations. In coordination with its partners in government, DIPA coordinated pop-up vaccination clinics around the state for farmworkers.

The early months of the “post”-pandemic period were marked by public uncertainty and fear as well as allegations of employers frequently out of compliance with COVID-19 safety standards. NYSDOL, through a series of new laws, safety regulations, and a dogged commitment to enforcing new standards, was able to create a work environment that allowed employers to keep their businesses open, and job seekers to begin to tentatively return to the work force.

Section 3 The End of the Emergency

In the spring of 2021, New York entered a new phase of the pandemic. A trio of vaccines were now widely available, and federal vaccination benchmarks were being reached on a regular basis, with New York leading the way in percent of population vaccinated. The vaccine rollout was, by most metrics, a success. On June 24, 2021, New York State ended the COVID-19 State Disaster Emergency that was originally declared on March 7, 2020, allowing many businesses to return to pre-COVID-19 operation levels. With new jobs flooding the market and the expiration of federal aid looming on the horizon, getting New Yorkers back to work became NYSDOL’s key focus.

Helping New Yorkers Get Back to Work

New York’s economy regained momentum in the spring and summer of 2021 as businesses reopened their doors and welcomed back a workforce ready to return to the jobs they loved. Warm weather and eased restrictions engendered the hope that New York State had gotten through the worst of it and a turn-around was imminent, but it wasn’t long before NYSDOL discovered not everyone was ready to go back to work. Whether out of lingering fear of COVID-19 or a desire to find something better, hiring trends lagged expectations. NYSDOL identified this early, and strategically pivoted employees of the Division of Employment and Workforce Solutions (DEWS) from UI-related roles back into their roles connecting New Yorkers to employment opportunities.

When it first became clear the lockdowns would be more than a two-week inconvenience for the workforce, NYSDOL quickly expanded its virtual services to enable New Yorkers access to critical support and help them get back to work safely. Before job dissatisfaction, wage stagnation, and COVID-19 fears coalesced into what would become known as “The Great Resignation,” NYSDOL was already providing New Yorkers with several opportunities to learn new skills and find more rewarding careers through virtual options:

September 2020

NYSDOL Launches
Virtual Career Fairs

᠎ 9,300 businesses ᠎ ᠎  83,000 job seekers

participated in 176 virtual career fairs since 2020

NYSDOL first introduced a state-of-the-art virtual career fair platform, which has allowed businesses to connect with and interview job seekers from the comfort of their own homes or workplaces. Since launch, NYSDOL has hosted dozens of regional and industry-specific career fairs around the state.

In fact, 9,300 businesses and 83,000 job seekers have participated in 176 virtual career fairs since 2020.

Late 2020

NYSDOL Rolls Out
Partnership with Coursera

᠎  ᠎130,000 learners 1.3M learning hours᠎ 

since launch of Coursera partnership

NYSDOL’s partnership with Coursera, a global online learning platform, revolutionized the way customers were able to train and upskill during the pandemic. All unemployed New Yorkers were – and still are – encouraged to take courses and enroll in certification programs through the Department’s Coursera program at zero cost to them. NYSDOL received feedback from several customers who completely changed their career pathway and are working now in coding, project management, and other high-demand and good-paying fields as a result of the NYSDOL-Coursera partnership.

Since its launch, 130,000 learners have logged 1.3 million learning hours.

March 2021

NYSDOL Launches Virtual
Workshops for Job Seekers

1,400 workshops 57,000 attendees

since March 2021

The following March, NYSDOL began hosting daily virtual workshops on a wide variety of topics — from resume development and the Civil Service program to the Emergency Rental Assistance and SNAP programs. These live virtual courses help New Yorkers cope with unemployment, gain new career and job search skills, and learn about other state services and resources, while also helping to fulfill UI Work Search Requirements.

1,400 workshops have been attended by 57,000 attendees since March 2021.

June 2021

NYSDOL Begins
Virtual Career Center

60,000+ users

have signed up for Virtual Career Center

NYSDOL developed a Virtual Career Center to give New Yorkers the job search resources they previously had available at NYSDOL Career Centers, but from the safety of home. The Virtual Career Center uses advanced technology, backed by robust artificial intelligence to provide job leads that really match a job seeker’s skills and experience. 60,000 users and counting are utilizing this tool to expand their job search.

NYSDOL also expanded opportunities through government partnerships, including SUNY to help New Yorkers enroll in the SUNY for All Online Training Center and SUNY Empire programs; New York State Civil Service to connect job seekers with New York State job opportunities; and agencies around the state to fill openings.

All of these resources were promoted both widely and directly to customers during the pandemic and at present.

With the looming September 2021 expiration of the federal benefit extension and employers in search of talent, NYSDOL ramped up its communication efforts to raise awareness about its workforce development and job search resources. In the summer of 2021, NYSDOL launched its Back to Work campaign, a multi-media blitz featuring Public Service Announcements for television, radio, social media, and print materials including bus wraps, subway, and bus stop signage. The multipronged campaign took a targeted approach in areas with the greatest need, including New York City, Buffalo, and Rochester, while also reaching a wider audience statewide via its social media platforms and GovDelivery system.

The pandemic forced NYSDOL to quickly develop and produce alternatives to in-person job support. From schools shifting to distance learning, to the necessary migration of jobs from the office to the living room, the nation learned the vital importance of the digital domain. For unemployed New Yorkers, NYSDOL’s digital expansion of services connected them to new training opportunities and offered renewed hope for many to pursue new careers.

These expanded resources and opportunities represent just a portion of services NYSDOL’s DEWS team provides to job seekers and businesses across New York State. DEWS provides additional career development coaching, job search support, and interviewing assistance for job seekers and recruitment services, HR assistance, and recommendations on hiring incentives and tax credits for businesses. NYSDOL continues to evaluate essential services and career search opportunities and remains committed to the delivery of quality resources to enhance the lives of New Yorkers.

Expiration of Federal Benefits

The federal aid programs implemented at the onset of the pandemic provided an estimated $3.3 trillion in relief across the United States. These programs, in addition to the American Rescue Plan, helped make the COVID-19 recession the shortest on record. While some argued for the extension of these benefits, the federal government indicated that they would not be renewed once the expiration date had passed. On September 5, 2021, several federal aid programs expired, including:

Pandemic Unemployment Assistance (PUA)
Pandemic Emergency Unemployment Compensation (PEUC)
Extended Benefits (EB)
$300 Federal Pandemic Unemployment Compensation (FPUC)
$100 Mixed Earner Unemployment Compensation (MEUC)

These programs were essential to millions of unemployed New Yorkers, keeping their heads above water while also providing a safety net so they did not have to risk their health by returning to work. With the conclusion of these federal aid programs, NYSDOL faced another challenge: ensuring its IT system was programmed to conclude these programs – but not disrupt the traditional UI program – and effectively communicating the end of benefits to millions of New Yorkers.

NYSDOL spent the months before the expiration of benefits promoting recruitment and workforce development resources and highlighting other avenues for assistance, including the Emergency Rental Assistance Program (ERAP), Temporary Assistance (TA), and the Supplemental Nutrition Assistance Program (SNAP). Additionally, NYSDOL continued to promote the state’s home energy assistance, child support services, housing and support services, and refugee services.

Though its focus shifted to helping New Yorkers return to the workforce, NYSDOL remained vigilant in ensuring that all New Yorkers received the benefits they were entitled to.

Excluded Workers Fund

New York’s essential workers were among the hardest hit by the virus. From street vendors to domestic workers, delivery drivers, and cooks — hundreds of thousands of low-wage immigrant workers delivered vital services to keep New York going during its darkest days. However, many of these individuals lost their livelihoods and soon found themselves excluded from UI and the federal relief programs, PUA and other pandemic unemployment benefits, that kept so many other New Yorkers afloat.

After months of steadfast efforts by advocates and impacted communities across New York State, on April 19, 2021, the Governor signed into law the historic $2.1 billion Excluded Workers Fund (EWF), the first such large-scale program of its kind in the country.

The fund helped resolve so many financial problems caused by the pandemic. Since we didn’t receive any other help, the biggest problem was back rent. With over $2,000 in rent now paid off, we feel relieved and secured that we have a roof over our heads. My husband and I feel less pressure and, personally, we believed the fund helped save our lives. We feel as if we have come back to life, and I’m very grateful.

Once the fund was created, NYSDOL faced the monumental task of implementing the application process and getting payments out as quickly as possible to eligible applicants. Upon passage of the EWF legislation, NYSDOL began partnering closely with representatives of the Fund Excluded Workers Coalition and other government agencies that serve immigrant populations. For NYSDOL, a key component of implementation was having a “Communities First” approach, which involved ongoing collaboration with these groups to ensure the program would be uniquely tailored to meet the needs of the communities it sought to benefit. This approach also provided critical feedback from advocates that led to money being distributed to eligible New Yorkers more efficiently.

As part of these efforts, NYSDOL awarded over $16 million in grant funds to 75 community-based organizations statewide to provide direct EWF application assistance, education, training, and related services.

NYSDOL used its experience with the unemployment crisis to shape how it launched EWF and, later, the Tourism Recovery Fund. In partnership with tech and banking vendors, NYSDOL utilized state-of-the-art technology to design a streamlined, mobile-first application that allowed applicants to:

Just over three months after EWF was signed into law, the application went live on August 1, 2021. Immediately, thousands of applications began rolling in. To qualify for EWF benefits, applicants needed to verify both their identity and New York State residence. Benefits under the fund were tiered, with approved applicants receiving one of two amounts based upon the proof of work eligibility they provided. Tier 1 qualifiers received $15,600 and Tier 2 qualifiers received $3,200. To ensure funds went to eligible applicants, NYSDOL put in place a vast array of sophisticated fraud detection mechanisms.

Given the finite funding of EWF combined with a tremendous response and a notably efficient review and payment process benefitting thousands of eligible New Yorkers statewide, NYSDOL stopped accepting new applications on October 8, 2021. The entire $2 billion fund was obligated for payment by November 1. In total, more than 350,000 applications were processed and over 128,000 New Yorkers were approved to receive the benefit. More than 99 percent of approved applicants received the maximum funding amount of $15,600.

The Excluded Workers Fund exemplified the compassion, fairness, and pursuit of equality that are at the core of what makes New York great. This first-of-its-kind fund served as a model for local and state governments throughout the country, some of which have already replicated NYSDOL’s efforts. EWF showed what a truly collaborative partnership between government, advocacy groups, community-based organizations, and the private sector can accomplish when they come together with a shared goal to deliver results that impact people’s lives in meaningful ways. The lessons learned from the prior year and a half — from utilization of advanced technologies to tactics to effectively fight fraud — were instrumental in ensuring EWF was a success and New Yorkers who were previously left out of benefit programs had the support they needed during the pandemic. And it’s come full circle, as NYSDOL’s experiences with these programs has re-shaped how it move forward with the unemployment system.

Tourism Recovery Fund

By mid-2021, many industries in New York State were on their way to recovering to pre-pandemic levels, but certain sectors lagged. The tourism industry in particular struggled to gain positive momentum.

Understanding that many New Yorkers were still in need of additional assistance, Governor Kathy Hochul introduced New York State’s Tourism Worker Recovery Fund. This $100 million program, announced in November 2021 as part of the “Bring Back Tourism, Bring Back Jobs” recovery package, provided one-time stimulus payments of $2,750 to as many as 36,000 workers in select tourism sectors who had been displaced from employment following the pandemic. The state collaborated with NY/NJ Hotel & Gaming Workers Union to ensure the program would be uniquely tailored to meet the needs of the people it sought to benefit.

To get the program off the ground, NYSDOL capitalized on lessons learned and best practices established throughout the pandemic. This included using modern technology, clear communications, and efficient payment methods.

Tourism industries especially hard hit by the pandemic included hotels and motels, food service contractors, limousine services, travel agencies, and more. New Yorkers eligible for the fund were pre-selected using UI information and labor market data compiled by NYSDOL’s Research and Statistics Division. Pre-selected individuals included those employed by businesses in the tourism sectors yet to regain a substantial portion of their workforce and where a high percentage of workers were still collecting extended federal benefits when the program expired on September 5, 2021.

NYSDOL contacted those eligible individuals by email and text message with further instructions. The individuals were instructed to complete a self-attestation through DocuSign and certify they were not yet fully employed, meaning before the announcement of this fund they were not earning at least 75% of what they were making prior to the start of the pandemic.

As with any large-scale benefits program, preventing fraud was a priority. However, eligible individuals had already passed through extensive fraud protection measures as they were receiving UI benefits. NYSDOL also ran comprehensive cross-checks on wage earnings to verify attestations.

From 2021 to 2022, NYSDOL distributed more than $67 million in relief to over 24,600 qualified tourism industry workers across New York State in the form of these one-time payments.

Section 4 Conclusion and Lessons Learned

Three years removed from when COVID-19 arrived in New York, the state finds itself in a position not unlike what it hoped for in the early days of the pandemic. Vaccination rates continue to climb as mortality rates have plummeted, and while we are not out of the woods with the COVID-19 virus, New Yorkers have found a way to go about their lives with normalcy.

NYSDOL emerged from the COVID-19 pandemic battle-tested and equipped with a deeper understanding of how to prepare for future catastrophes. The pandemic provided invaluable lessons about crisis management and revealed the importance of keeping NYSDOL’s UI systems updated and capable of handling sudden spikes in workflow; that adaptability of technology and personnel allows us to stay nimble in the event of a catastrophe; that communication across all platforms is vital to keeping New Yorkers safe and informed; that any problem can be overcome with the right mix of imaginative policymaking, collaboration, and unwavering commitment to the mission at hand; that NYSDOL must remain vigilant in protecting the vulnerable and to make sure all New Yorkers get the relief to which they are entitled.

NYSDOL is ready for whatever the future holds, and the Department continues to do all it can to fight fraud and get unemployment benefits into the hands of unemployed New Yorkers.

The Department continues to enhance its technologies and, when launched, the new UI system will be a model for other state labor departments. The system has been developed based on the many lessons learned throughout the past three years and with the needs of stakeholders in mind, including customers, businesses, and advocates. At the same time, NYSDOL is overhauling technology and processes in other areas of the Department:

MPWR

Management System for
Protecting Workers’ Rights

A digital case management system for NYSDOL’s Division of Worker Protection that will be completed in 2023. MPWR will allow New Yorkers to report claims of labor violations, unemployment fraud, and more online in multiple languages and receive updates in real time about the status of their claims.

WARN

Worker Adjustment
and Retraining Notification

An upgraded online tool that gives businesses the ability to file notice of layoffs in a faster, more streamlined manner and provides workers more time to transition into new employment. Accompanied by strengthened regulations, the WARN Portal, which will launch in 2023, will helps businesses comply with the WARN Act and ensures workers laid-off in mass lay-offs and other scenarios get the support they need faster.

NYSDOL’s communication approach will continue to evolve to ensure the department is meeting its customers where they are. During the pandemic, that meant new virtual assistants and bots, email and SMS outreach, and the launch of newsletters. Since then, those efforts include the launch of Spanish-language social media accounts, additional newsletters, and social advertising on new platforms, like TikTok. NYSDOL is strengthening the capabilities and reach of existing tools to serve greater purpose, including expanding Perkins the virtual assistant to serve Worker Protection and Division of Employment and Workforce Solutions customers.

NYSDOL continues to hire, train, and upskill staff, and improve processes and policies through transparency initiatives, and new and strengthened divisions, including Policy, Strategy, and Research and the Office of Business Advocacy.

Above all, the New York State Department of Labor remains committed to helping the people and businesses who call New York State home. NYSDOL will continue to modernize, to grow, and to improve because “We Are Your DOL: Transforming New York’s World of Work.”