Head of Oregon’s employment department apologizes for poor customer service

PORTLAND Ore. (KPTV) – Oregon’s unemployment system got an upgrade this year. But for many people using it, the technology is more of a pain than a gain.

We’ve heard from dozens of you about long hold times and an inability to reach anyone on the phone to discuss a claim.

FOX 12 investigative reporter Ezra Kaplan looked into the issues with the system and found the problems go back years.

The Oregon Employment Department’s new software was supposed to make it easier to file for unemployment claims. When a claim is simple, the system works great. But getting a problem resolved can mean a serious headache.

Over the past two months Makela Karisa developed a weekend routine.

“So every Sunday we’re to go online and file a weekly claim, which is what jobs we’ve look for,” said Karisa. “Well, that link to do that has never worked. So if you missed filing on Sunday you have to call.”

But getting someone to pick up a phone call? Good luck.

“So calling looks like this,” explained Karisa. “You dial redial for 30 minutes because the whole day minus queue is full. Then you wait another three to seven hours.”

One time she made it through to a manager.

“She’s the one that said, ‘I’ll call you back at 2:30 with a solution to your website issues,’ and it’s been six days. I have not heard back from her,” said Karisa.

Oregon’s unemployment insurance has been going through a major technology upgrade over the past few years.

During the pandemic, the seriously outdated software the agency used couldn’t keep up with the volume of claims or the various new federal programs.

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That’s where Frances comes in.

With a price tag of $106 million and more than a decade overdue, the new software program is the same system used by the new Paid Leave Oregon program.

The promise to tax payers is an easier experience.

“So basically I’m stuck in a reoccurring loop or I can’t get any closure or any help and there’s no way to escalate and I kind of would like my money,” said Karisa.

Employers in Oregon pay into the unemployment insurance trust fund on their workers’ behalf.

“How does that feel, knowing that this is money that you’ve paid into?” we asked.

“It feels like theft. It feels like fraud. Because they won’t let me talk to anybody higher up to get resolution, what is my hope? I’m just going to go up the government food chain until I can find somebody that will help me,” said Karisa.

We decided to take her complaints all the way up the food chain to David Gerstenfeld, the director at the Oregon Employment Department. With about 450 employees, the agency handles a huge volume of claims.

“We’re getting, depending on the time of year, maybe, and even with pretty low unemployment, 30 to 35,000 people a week that are claiming benefits,” said Gerstenfeld.

What’s clear is that they need more human beings to process complex claims and labor costs money.

During the 2023 legislative session, Gerstenfeld asked the state legislature to increase funding for the agency. But even with the prospect of losing pandemic-era federal funding, legislators balked.

They finally approved funding this year for about 70 new hires.

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As of June 30, 75% of all claims were paid out within three weeks. That’s a significant improvement from April, when only half of those who applied got their payment in a timely manner.

But Gerstenfeld acknowledges, his agency has fallen short this year.

“I am very sorry, and our employees are sorry, the people work here I mentioned before, because we’re here to help people, and we know that it’s frustrating and it’s really frustrating and painful for us to know that we’re not able to meet the need,” said Gerstenfeld.

There are a lot of folks out there wanting more than just an apology.

From Reddit threads to Facebook groups, thousands of people are trying to navigate the system that’s supposed to support them while they look for a new job.

This story does have a happy ending, at least for Michaela.

One day after I interviewed the head of the department of employment and asked about her case, she suddenly had her benefits paid out.

They even said that they would be calling on Monday to make sure she was able to file.

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