INDIANAPOLIS (AP) — The state’s unemployment office is jammed with about 42,000 claims that won’t be paid to out-of-work Hoosiers until paperwork problems are resolved.

The Department of Workforce Development said Friday it will hire 100 new employees to help handle the red flags. But that’s little consolation to those who are out of jobs — and out of cash.

“A lot of creditors don’t really care if you’ve been laid off or not. They want their money,” said Fort Wayne resident Ron Miller, who applied for benefits after he and his wife both lost their jobs last year.

Miller’s unemployment benefits came smoothly, but a snag with his wife’s unemployment claim meant the couple went weeks without her unemployment benefits.

“We had to cut back on a lot,” said Miller, who lost his job delivering plumbing supplies.

The state processes about 200,000 unemployment claims each week. The number of problematic claims fluctuates but on Friday was running about double the same time a year ago, said Workforce Development spokesman Marc Lotter. The overall number of claims also has nearly doubled as more Indiana residents have lost jobs.

To collect unemployment benefits, an out-of-work person must first fill out an online application — either with help at a state WorkOne center or on any Internet-accessible computer. Then the person must file weekly claims for benefits, either online or through the mail.

If one part of any form or claim isn’t filled out correctly, that record is flagged and the person can’t collect benefits until the problem is resolved. All subsequent weekly claims also are flagged until the initial error is fixed.

The process must work that way to ensure the state isn’t giving benefits to those who don’t qualify, Lotter said.

“These are not glitches in the system,” he said. “They are legitimate issues that need to be resolved.”

Problems can include simple errors, such as a Social Security number typed incorrectly, or documents that need to be verified by previous employers.

Miller’s wife faxed a required document to the state to fix her claim, but the problem still wasn’t resolved and the couple couldn’t reach anyone to talk to about it. Their local WorkOne office had such a long line that a worker turned him away, Miller said, and the state’s automated phone often rings busy. When a caller can get through, there is no option to hold for a customer representative or leave a message — the system simply hangs up after going through a maze of prerecorded options.

Miller said he finally called the governor’s office and got the issue resolved.

State Rep. David Niezgodski, D-South Bend, said he’s heard from many out-of-work residents frustrated with the unemployment process. He said 42,000 problematic claims was a “pretty significant number.”

“We’re not expecting perfection,” Niezgodski said. “We just want to know that every effort is being made to do the best job possible.”

Republican Gov. Mitch Daniels visited WorkOne offices in Fort Wayne and Elkhart on Friday to talk to unemployed workers and Workforce Development employees. Daniels said the 100 new positions in Indianapolis and Fort Wayne — paid for through federal funds — will help resolve issues and investigate unemployment claim discrepancies.

“When people are hurting, we can’t move too fast,” Daniels said.

The state is also:

— Expanding hours at some WorkOne centers to handle unemployment claims.

— Using an “all-hands on deck” approach so that Workforce Development and WorkOne employees with previous adjudication experience can help resolve problems.

— Programming the automated benefits system so that it asks more questions if a possible problem is detected, including asking whether a person really wanted to answer a question the way they did.

Although the red flags are frustrating for many, others get their benefits quickly with few problems. Workforce Development officials say the office handles 85 percent of total unemployment claims within seven days.

Posted 1/26/2009