Clearly Not the Time to Give the Department of Labor The Responsibility of Handling More Taxpayer Dollars

The Department of Labor and Workforce development is rife with mismanagement that negatively affects both workers and businesses and Governor Bill Haslam wants to add another division to it paid for by millions of taxpayer dollars? Apparently he thinks this is a brilliant idea ’cause that’s what his workers’ comp bill does – adds a fully staffed workers’ comp division under the control of the Department of Labor. This is neither smart nor efficient government. It’s ineffective and wasteful. From the Tennessean:

Many Tennessee business owners say an audit released last week that showed the state overpaid $73 million in unemployment benefits validates their longstanding complaints about the state’s unemployment program….

In the report, the state comptroller’s office said the labor agency often failed to follow its own procedures in administering the program, which pays up to 26 weeks of benefits to employees who lose their jobs through no fault of their own.

That led to the $73 million in overpayments to ineligible employees in a recent six-year period. The agency’s lapses also worsened a growing backlog in processing new claims from employees, along with claims challenges by former employers, the report said.

Read more. The Governor responds to questions about workers’ comp division here.

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