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You can select from the set of elements for Agency and Program / Service Area Strategic Plans.

"Unpublished" is the version of the plan that is being worked on by agency personell. The "Published" version is the last version of the plan that was last published by the agency.

Certain Programs and Service Areas are marked to participate in strategic planning. Some are not marked because they are not appropriate for strategic planning.

2024-26 Strategic Plan
Virginia Employment Commission [182]
Mission, Vision, Values
Mission

Lifting up Virginia, one unemployed worker at a time.


Vision

To administer the best state unemployment program in the country through innovation, integrity and responsiveness.


Values

The Virginia Employment Commission (VEC) is guided by a set of core values that underpin its commitment to serving the Commonwealth's workforce and employers. These values shape the Commission's approach to delivering services and achieving its mission:


  1. Integrity: The VEC upholds the highest standards of honesty and transparency in all its operations. We are dedicated to ensuring that our processes are fair, ethical, and accountable, maintaining the trust of the public and stakeholders.

  2. Excellence: We strive for excellence in every aspect of our work. Our commitment to continuous improvement drives us to deliver high-quality services, adopt best practices, and exceed the expectations of unemployed workers and employers.

  3. Innovation: Embracing innovation is crucial for staying ahead in a dynamic labor market. The VEC values creative problem-solving and the use of cutting-edge technology to enhance service delivery and address emerging workforce challenges.

  4. Customer-Centricity: We prioritize the needs and experiences of our customers. Our focus is on providing responsive, accessible, and supportive services that empower individuals and businesses to achieve their goals.

  5. Opportunity and Inclusiveness: The VEC is dedicated to fostering an inclusive environment where all individuals have access to opportunities and resources. We are committed to removing barriers and promoting fairness across all our programs and services.

  6. Collaboration: Building strong partnerships with community organizations, businesses, and educational institutions is essential. We value collaborative approaches that leverage diverse perspectives and expertise to address workforce issues effectively.

  7. Accountability: We take responsibility for our actions and decisions, ensuring that we meet our commitments and achieve our goals. Accountability is key to maintaining public confidence and delivering on our mission.

  8. Respect: We treat all individuals with dignity and respect, recognizing the value and contributions of each person we serve and work with. Our interactions are guided by a commitment to empathy and understanding.

By adhering to these values, the Virginia Employment Commission remains steadfast in its mission to support Virginia's workforce and contribute to the overall prosperity of the Commonwealth.


 
Agency Background Statement

The Virginia Employment Commission (VEC) is a state agency responsible for overseeing and administering unemployment benefits in the Commonwealth of Virginia. Established in 1936, the VEC plays a crucial role in supporting the state's economic stability and workforce vitality by providing essential services to employees and employers during times of economic and employment changes.

The primary functions of the VEC includes managing unemployment insurance programs and the collection and analysis of labor market data to ensure the agency remains agile in its strategic planning and response of market and economic fluctuations.

In recent years, the VEC has focused on modernizing its services through technology enhancements and streamlining processes to better meet the needs of a dynamic workforce. This includes efforts to improve customer service, expand access to employment resources, and enhance the efficiency of benefit delivery systems.

By fulfilling its mission, the VEC contributes to the economic well-being of Virginia's residents, helping them navigate periods of unemployment and transition into new employment opportunities while supporting the overall health of the state's labor market.

The following federal laws provide the basis for programs administered by the Virginia Employment Commission (VEC). All VEC programs are funded through a combination of grants provided by the United States Department of Labor and fees, penalties, and interest on unemployment taxes.


  • Wagner-Peyser Act of 1933 - Directs the establishment of a national network of public labor exchange offices operated by the states.

  • Virginia Unemployment Compensation Act - Provides economic stabilization by administering compensation to those who are unemployed through no fault of their own.

  • Section 306, Title Ill, Social Security Act (enacted by BBA of 2018)- Permanently authorized RESEA program to assist UI claimants deemed likely to exhaust and assist in detecting fraud.


 
Agency Status (General Information About Ongoing Status of the Agency)

Future Direction, Expectations, and Priorities

As the Virginia Employment Commission (VEC) looks towards the future, it is committed to evolving its role in response to changing workforce dynamics, technological advancements, and economic shifts. The VEC aims to enhance its impact on Virginia by focusing on several key areas:


  1. Digital Transformation and Innovation: The VEC will prioritize the modernization of its technology infrastructure to improve service delivery and accessibility. This includes expanding online services through the usage of ID.me and the Claimant Self Service portal, automating processes to streamline unemployment claims, and leveraging data analytics to better predict and respond to labor market trends.

  2. Opportunities and Access: The VEC is committed to ensuring that every Virginian who needs our services can easily access them. We will continue to remove barriers, simplify processes, and make sure all individuals and employers receive fair, timely, and consistent support.

  3. Strengthening Employer Relationships: Building robust partnerships with employers through the agency's expanded ombudsman program is essential for fostering a strong connection with Virginia's workforce community.

  4. Resilience and Adaptability: Given economic uncertainties and potential disruptions, the VEC is committed to enhancing its resilience and adaptability to swiftly address future crises or shifts in the job market. As specified in the Code of Virginia § 60.2-111 Section E, the VEC's Resiliency Plan outlines strategies for adjusting staffing levels in response to increased unemployment insurance (UI) workload, implementing policy and procedural changes, executing a robust communications strategy, prioritizing claim adjudication, and ensuring the continuity of UI claims processing. The agency's focus is on making the unemployment insurance system both effective and responsive. Additionally, the VEC will continuously evaluate its organizational structure to develop a more nimble framework capable of adapting to a dynamic operational environment.

  5. Customer-Centric Approach: Improving the overall customer experience is a key focus. The VEC will seek to make interactions more user-friendly, provide timely and accurate information, and ensure that individuals receive the support they need to navigate unemployment challenges effectively.  Building on recent digital upgrades, the VEC will adopt emerging technologies that make interactions faster, clearer, and more convenient for customers.

  6. Funding Sustainability:  The agency will practice fiscal discipline and continuously identify cost-saving opportunities, ensuring that the administrative fee is used prudently and strategically.

By concentrating on these priorities, the Virginia Employment Commission aims to not only address immediate needs but also to lay a foundation for long-term growth and stability in the Commonwealth. The Commission remains dedicated to supporting Virginia's workers and businesses through innovative solutions and customer centric approaches.


 
Information Technology

Factors Currently Impacting IT:

1. The Virginia Employment Commission (VEC) is evolving its technology environment to support a modern, data-driven, and resilient unemployment insurance system. Several key factors continue to shape the agency’s IT strategy and future direction: Technological Advancements


  • Emerging Technologies:  Emerging technologies continue to transform how services are delivered and how customers expect to interact with government. The VEC must remain agile, adopting innovations that enhance accessibility, improve speed, and reduce complexity for both claimants and employers. Regular software upgrades and system enhancements are essential to maintaining security, reliability, and responsiveness.

2. Cybersecurity and Enterprise Risk

3. Risk Informed Operations: The VEC manages sensitive personal and financial data, making robust cybersecurity and enterprise risk management top priorities. Building on the agency’s Risk Intelligence and Resilience Initiative (RIRI), the VEC is unifying fraud prevention, IT security, and compliance under a coordinated framework to strengthen early detection, information sharing, and decision-making.

This approach embeds risk and resilience into daily operations—allowing the agency to anticipate, respond to, and recover from potential disruptions with speed and confidence. Cyber readiness will be further reinforced through clear governance structures and a proactive Information Security Program

Budget Constraints


  • Funding Limitations:  With federal funding levels projected to remain flat, the VEC will rely on prudent management of the administrative fee, strategic investment in efficient and cost-effective IT solutions, and continual assessment of workforce capacity to sustain a focused, achievable modernization agenda.

  • Cost Management:  The VEC will continue working closely with the Virginia Information Technologies Agency (VITA) to identify cost-saving opportunities and explore innovative approaches to technology investment and outlay. This partnership ensures that modernization efforts remain both efficient and fiscally responsible.

4. User Needs and Expectations

5. Flexible and Responsive Service Accessibility: Customers expect fast, transparent, and mobile-friendly digital services. The VEC is enhancing its systems to provide clear and intuitive interactions, similar to leading private-sector experiences. The agency’s vision is to make every interaction—from filing a claim to managing employer taxes—simple, reliable, and guided by user-centered design principles

Infrastructure and System Integration


  • Future Modular Modernization:  Legacy systems remain a challenge, limiting interoperability and agility. The VEC will address this by transitioning to a modular system design, beginning with a strong financial core and incrementally adding components for payments, adjudication, appeals, and employer tax. This modular approach supports scalability, faster delivery, and improved alignment between business and technology functions.

  • As part of its risk-informed design philosophy, the VEC will integrate resilience testing and continuity planning into all modernization efforts to ensure new systems are both innovative and durable under stress.

6. Workforce Skills and Training


  • Technology Workforce Strategy: The VEC will continuously assess its technology workforce to keep pace with emerging tools and evolving operational needs. As technology advances, the agency will adjust roles, realign talent, and provide ongoing training to ensure staff possess the skills required for secure, efficient, and customer-centered service delivery.

  • By investing in upskilling, cross-functional collaboration, and continuous improvement, the VEC will maintain an agile and resilient IT workforce capable of supporting modernization and sustained operational excellence.

7. Disaster Recovery and Business Continuity


  • Risk Intelligence and Resilience Initiative:  The VEC’s disaster recovery and business continuity capabilities are built on the principles of enterprise resilience. Through the Risk Intelligence and Resilience Initiative (RIRI), the agency integrates continuity planning with cybersecurity, compliance, and operations to ensure coordinated, rapid recovery from disruptions.

  • This unified approach strengthens preparedness, accelerates decision-making, and ensures that critical unemployment insurance and employer tax services remain available under any circumstance.

8. Public Expectations and Transparency


  • Transparency: The public expects transparency in how technology decisions are made and how data is managed. The VEC will continue to communicate openly about modernization progress, IT governance, and data stewardship, reinforcing public confidence in the agency’s systems and leadership.

Addressing these factors effectively can help the VEC maintain robust and reliable IT systems that support its mission and serve the needs of Virginia's workforce and employers.


 
Workforce Development

To build a future-ready organization that can scale and adapt with speed, the Virginia Employment Commission is reimagining workforce planning through a resilient, capability-first lens. Rather than reacting to changing labor conditions, the VEC is cultivating an agile, mission-aligned workforce equipped to deliver exceptional service amid uncertainty.

The agency’s focus has shifted from filling positions to developing enduring capabilities—such as adaptability, critical thinking, and collaboration—that strengthen performance across all levels. Hiring and development now emphasize potential and learning agility over static experience, ensuring a workforce prepared for continuous transformation.

Key strategies include:


  • Aligning talent to mission priorities and emerging needs.

  • Building durable capabilities through continuous learning.

  • Strengthening leadership and cross-functional collaboration.

  • Integrating technology and workforce planning to improve service delivery.

  • Using data to redeploy resources quickly and maintain operational agility.

Through this modernized approach, the VEC is building a dynamic and resilient workforce—one that not only meets today’s mission but drives Virginia’s continued transformation.


Staffing
Authorized Maximum Employment Level (MEL) 523.0  
Salaried Employees 431.0
Wage Employees 117.0
Contracted Employees 0.0
 
Physical Plant

VEC currently manages leases for 12 buildings across the Commonwealth and owns 4 buildings situated in Covington, Fishersville, Hampton, and Lynchburg, VA. The management of these leased properties is a collaborative effort between VEC's procurement team and the Department of General Services - Division of Real Estate Services (DGS-DRES).

Besides the day-to-day management of the leased space, VEC has no major physical plant projects planned. VEC successfully meets all established requirements and standards in providing accommodations, facilities, equipment and amenities that are suitable for employees.

VEC and ORES meet routinely to discuss leases that are set to expire within two to three years. This discussion is critical in planning and budget preparation for the agency.

The VEC is exploring means to optimize its use of physical office space by evaluating several key factors that align with modern work practices, efficiency and preparedness in the event of another large-scale unemployment surge. The VEC will utilize the below strategies for effective and adaptable physical office space.

1.Flexible Workspace Design


  • Hot Desking: Implement hot desking or shared workspaces to maximize the use of available space and accommodate fluctuating staff numbers. This approach reduces the need for dedicated individual workstations and allows for a more dynamic work environment.

2.Technology Integration


  •  Tech-Enabled Spaces: Equip workspaces with the latest technology to support remote work, virtual meetings, and efficient communication. Ensure that meeting rooms have appropriate audio-visual equipment and reliable internet connectivity.

3.Efficiency and Space Utilization


  • Space Audits: Conduct regular audits to assess space usage and identify opportunities for optimization. This can help reduce underutilized areas and reallocate space based on current needs.

  • Storage Solutions: Implement efficient storage solutions, such as digital records management, to reduce the need for physical storage and free up space for other uses.

4.Security and Privacy


  • Secure Areas: Designate secure areas for sensitive information and ensure that access is restricted to authorized personnel.

  • Confidentiality: Ensure that spaces used for confidential conversations or meetings are designed to provide privacy and prevent unauthorized access.

5.Future-Proofing


  • Adaptable Layouts: Design office spaces with flexibility in mind to accommodate future surges in work or organizational needs. The agency will explore the utilization of modular furniture and adjustable layouts to help adapt to evolving requirements.

  • Hybrid Work Models: During times of high unemployment volumes, the Agency will consider spaces that support hybrid work models, where employees split their time between home and the office. This includes providing collaborative areas for team meetings and shared workstations for in-office days.


 
Key Risk Factors

The Virginia Employment Commission (VEC) faces several key risk factors that could affect its ability to deliver reliable, secure, and timely services. Identifying, managing, and mitigating these risks is essential to sustaining operational excellence and public confidence. The VEC’s Risk Intelligence and Resilience Initiative (RIRI) provides a unified approach to risk—integrating cybersecurity, compliance, fraud prevention, and continuity planning into daily operations to strengthen decision-making and responsiveness.

1. Cybersecurity and Data Protection

The VEC manages sensitive personal and financial data, making it a potential target for cyberattacks. Risks include unauthorized access, ransomware, and system vulnerabilities that could compromise privacy and disrupt operations. The agency is strengthening its defenses through layered security controls, real-time monitoring, incident response planning, and enterprise-wide awareness training.

2. Technological and System Resilience

Aging infrastructure, complex integrations, and legacy dependencies remain risks to service reliability. System failures or delays in modernization could disrupt claim processing or limit responsiveness during demand surges. The VEC’s modular modernization strategy and enhanced IT governance are mitigating these risks by building scalability, redundancy, and interoperability into future systems.

3. Fiscal Constraints and Sustainability

Federal administrative funding is unlikely to increase in the near term, limiting flexibility for modernization and staffing. The agency’s disciplined use of the administrative fee, combined with efficiency gains, cost optimization in collaboration with VITA, and careful human capital planning, will support a sustainable modernization path within existing fiscal boundaries.

4. Economic Volatility

Economic downturns or major workforce disruptions lead to rapid increases in unemployment claims, placing strain on systems and staffing capacity. The agency’s Resiliency Plan under § 60.2-111(E) and ongoing scenario planning ensure the VEC can scale operations quickly to meet fluctuating demands.

5. Workforce Capacity and Readiness

Competition for skilled IT and adjudication professionals, retirements, and evolving technical needs create workforce continuity risks. The VEC is continuously assessing its human capital needs, realigning talent, and investing in cross-training and capability-based development to maintain an adaptive, mission-ready workforce.

6. Public Confidence and Customer Experience

The VEC’s success depends on maintaining public trust through accurate, transparent, and timely service. Any breakdown in communication, service quality, or accessibility could erode confidence. The agency’s customer-centric approach, strengthened by digital self-service tools, proactive communication, and clear performance reporting, supports consistent service delivery and trust in the agency’s mission.

7. Fraud and Program Integrity

Fraudulent activity remains a significant risk within unemployment programs nationally. The VEC continues to invest in advanced analytics, identity verification tools, and partnerships with the U.S. Department of Labor and NASWA Integrity Data Hub to prevent, detect, and recover improper payments.

Integrated Risk Management

Through the Risk Intelligence and Resilience Initiative (RIRI), the VEC is building an enterprise risk framework that unifies fraud prevention, IT security, compliance, and business continuity. This coordinated approach enhances early detection, improves information sharing, and embeds resilience across operations—ensuring that risk management is proactive, data-driven, and aligned with the agency’s mission.


 
Finance
Financial Overview

The Virginia Employment Commission is funded by United States Department of Labor administrative and benefit grants. Unemployment Insurance benefits are paid from the Unemployment Insurance Trust Fund, which is funded through state tax paid by employers. Most non-general funds are appropriated for unemployment benefits.


Biennial Budget
  2025 General Fund 2025 Nongeneral Fund 2026 General Fund 2026 Nongeneral Fund
Initial Appropriation for the Biennium $632,167 $586,779,340 $357,167 $586,779,340
Changes to Appropriation $0 $0 $0 $33,478,187
Revenue Summary

VEC's primary source of revenue collections is the State Unemployment Compensation Payroll Tax collected from Commonwealth of Virginia employers to cover state unemployment benefits. The second primary source is the Unemployment Insurance funding provided by the United States Department of Labor to pay federal unemployment insurance benefits and to fund the administration of the Unemployment Insurance program. The remaining revenue collections are provided by fees, penalties, and interest on unemployment taxes.

VEC grants are capped and there are no additional funds to be secured from USDOL to offset operational increases.

As of January 1, 2025, the Virginia Code permits the Virginia Employment Commission (VEC) to impose an administrative fee of 0.05% on taxable wages, which employers must assess and pay quarterly. This fee has generated $11.1 million in SFY 2025 and is projected to generate $16 million annually. The funds will be dedicated solely to addressing critical technology and staffing needs, both of which have been impacted by budget shortfalls. Employers are responsible for paying the fee, which cannot be deducted from employees' wages.


 
Agency Statistics
Statistics Summary

The unemployment industry is influenced by several evolving trends that impact how unemployment services are delivered, managed, and perceived.

Integration with Workforce Development


  • Skills Training and Employment Services: Integration of unemployment services with workforce development programs, including job training, career counseling, and skills development to facilitate reemployment.

Legislative and Policy Changes


  • Regulatory Updates: Changes in federal and state regulations affecting unemployment benefits funding levels, eligibility criteria, and program administration.

  • Emergency Response Policies: Development of an agile product and service delivery model(s) to create an adaptable response model address unemployment during economic crises or public health emergencies, such as the COVID-19 pandemic and natural disasters.

Economic Fluctuations


  • Response to Economic Downturns: Adapting unemployment programs to handle increased demand during economic recessions or periods of high unemployment.

These trends reflect the continual evolution of the unemployment industry, driven by technological advancements, shifts in workforce dynamics, and changes in regulatory and policy environments. To effectively respond to these trends, the agency has prioritized agile product and service delivery to maintain adaptability.

Key performance metrics for the agency relate to meeting U.S. DOL metrics for:


  • Timely First Pay

  • Timely Decisions

  • First Level Appeals Completed in 30 days

  • First Level Appeals Completed in 45 Days

  • First Level Appeals Average Age

  • Commission Level Appeals Average Age

In addition to: Initial Claims Filed Online


Statistics Table
Description Value
Percent of initial UI payments made within 21 days (percent) 87
Percent of initial UI decisions made within 21 days (percent) 80
First Level Appeals Completed in 30 days (percent) 60
First Level Appeals Completed in 45 days (percent) 80
First Level Appeals Average Age (days) 30
Percent of initial claims filed online (percent) 80
 
Customers and Partners
Anticipated Changes to Customer Base

The Virginia Employment Commission (VEC) serves a diverse customer base, encompassing a wide range of individuals and entities affected by unemployment and workforce-related issues driven by recession, economic uncertainty and fluctuations. The VEC is committed to understanding the current customer base and anticipating future changes to effectively meet evolving needs.

Current Customer Base

1. Unemployed Individuals


  • Job Seekers: Individuals who have lost their jobs and are seeking unemployment benefits. This group includes those who are eligible for regular unemployment insurance, extended benefits, and special assistance programs.

  • Claimants: Those who are currently receiving unemployment benefits and require ongoing support and information regarding their claims.

2. Employers


  • Businesses: Employers who need to comply with unemployment insurance requirements, including submitting unemployment insurance tax contributions and responding to claims.

  • HR Departments: Human resources personnel who handle unemployment claims, manage employee separations, and ensure compliance with unemployment regulations.

3. State and Local Government Entities


  • Policymakers: Government officials who rely on data and reports from the VEC for decision-making and policy formulation.

  • Economic Development Organizations: Entities that collaborate with the VEC to address regional workforce needs and promote economic growth.

4. Community and Advocacy Groups


  • Support Organizations: Nonprofits and advocacy groups that work with individuals facing unemployment or underemployment and may refer clients to VEC services.

 

Anticipated Changes in the Customer Base

1. Increased Demand for Digital Services


  • Online and Remote Access: As the desire for more services to move online, there will likely be an increase in the number of customers both requesting and using digital platforms for filing claims and receiving support.

2. Diverse Workforce Needs


  • Gig and Freelance Workers: With the growth of the gig economy and freelance work, there is an anticipated increase in the number of non-traditional workers seeking unemployment benefits and workforce support.

  • Rapidly Evolving Skill Gaps: Skills needed in today's economy evolve rapidly, resulting in faster ebbs and flows of subsets of workers moving in and out of the workforce.

3. Economic Fluctuations


  • Economic Downturns: During periods of economic recession or instability, the VEC anticipates seeing a surge in the number of unemployed individuals seeking assistance.

  • Economic Recovery: Conversely, during economic recoveries, there may be a shift in focus from unemployment support to job placement and skills development.

 

Evolving Job Market Due to Technological Advancements


  • Shifting Job Requirements: As technology advances, changes in job requirements and skills can influence employer needs and affect unemployment trends in specific industries.

By anticipating these changes, the VEC can adapt its services and outreach strategies to effectively meet the evolving needs of its customer base, ensuring that it continues to provide valuable support in a changing economic and technological landscape.


Current Customer List
Predefined Group Userdefined Group Number Served Annually Potential Number of Annual Customers Projected Customer Trend
Unemployed Unemployment Insurance Initial Claimants 147,782 147,782 Stable
Employer/ Business Owner Unemployment Insurance Tax Customers 216,951 216,951 Increase
Partners
Name Description
U.S. Department of Labor USDOL provides funding and program guidance to VEC. VEC provides state and local labor market information to USDOL.
Executive Branch Governor, Secretary of Labor
Legislature VA General Assembly, Commission on Unemployment Compensation
State and Local Government Entities VEC supplies current labor market information, and assists in responding to mass layoffs and plant closings in local areas.
Internal Revenue Service VEC partners with IRS to recoup UI overpayments, and to administer programs that provide services to targeted groups of workers.
Business organizations, such as Chambers of Commerce. and others VEC supplies information about VEC programs and services to existing, new, and prospective employers.
National Association of State Workforce Agencies VEC partners with the National Association of State Workforce Agencies for Integrity Data Hub fraud analytics and for DOL program and operational-related training
 
Major Products and Services

The Virginia Employment Commission (VEC) offers a range of products and services designed to support both unemployed employees and employers while contributing to the overall economic stability of the Commonwealth. Here are the major products and services provided by the VEC:

1.Unemployment Insurance (UI) Programs


  • Unemployment Benefits: Financial assistance for individuals who have lost their jobs through no fault of their own. This includes regular unemployment insurance benefits and extended benefits during periods of high unemployment.

2.Claimant Services


  • Claims Processing: Handling of unemployment claims, including application processing, eligibility determination, and benefit disbursement.

  • Customer Support: Assistance with issues related to claims, benefits, and account management through call centers, online support, and in-person services.

3.Regulatory Compliance


  • Employer Compliance: Assistance with understanding and meeting regulatory requirements related to unemployment insurance and workforce regulations.

  • Audits and Investigations: Conducting audits and investigations to ensure compliance with state and federal laws regarding unemployment benefits and employment practices.


 
Performance Highlights

To achieve "best in class" status and exceed the United States Department of Labor (DOL) targets, the Virginia Employment Commission (VEC) is focused on several key performance measures. These measures align with our goals of efficiency, effectiveness, and customer satisfaction.

1.Claims Processing Efficiency


  • Average Claims Processing Time: Track the average time taken to process unemployment insurance claims from submission to decision. Our goal is to consistently surpass the DOL's benchmark for timeliness.

  • First Payment Timeliness: Measure the percentage of claims for which the first benefit payment is made within the DOL's standard timeframe (e.g., within 21 days). Our goal is to meet or exceed this standard.

2.Appeals Timeliness


  • Appeal Decision Timeliness: Monitor the percentage of first-level appeal decisions made within the DOL's standards (e.g., 60% within 30 days and 80% within 45 days). Our goal is to improve on these benchmarks.

3.Customer Satisfaction


  • Customer Satisfaction Surveys: Regularly conduct surveys to gauge claimant satisfaction with the claims process, customer service, and overall experience. Our goal is to improve our customer satisfaction scores, reflecting a superior level of service.

4.Fraud Prevention and Accuracy


  • Fraud Detection Rate: Track the rate of identified fraudulent claims versus total claims filed. Implement measures to improve fraud detection and reduce fraudulent activities.

  • Error Rate: Monitor the rate of errors in claims processing and payments. Set targets for reducing errors to ensure high accuracy in benefit determinations.

5.Operational Efficiency


  • Cost Per Claim Processed: Monitor and aim to reduce the cost associated with processing each unemployment claim, striving for operational efficiencies without compromising service quality.

  • Technology Utilization: Measure the effectiveness of new technologies and systems implemented to streamline operations and improve service delivery.


Selected Measures
Name MeasureID Estimated Trend
Percent of first-time Unemployment Insurance (UI) payments made on time 18247002.001.001 Improving
Average age of pending First Level Appeals 182.0020 Improving
Claims remaining on First Level appeals backlog 182.0005 Improving
Percent of nonmonetary determinations made within 21 days 182.0019 Improving
Percentage of initial claims filed online 182.0021 Improving
VEC will develop and test a comprehensive plan that ensures resiliency and responsiveness to economic conditions regardless of the nature and duration of such events. 182.0018 Improving
 
Agency Goals
Become the Best in Class Employment Commission in the Country
Summary and Alignment

VEC is committed to performance at every level of our operation. Performance means delivering accurate, timely, and efficient services that put the customer first, prioritize innovation, foster continuous improvement, and employ exemplary stewardship of public resources. VEC is committed to continuously communicating and implementing state and federal policies and procedures to safeguard sensitive information against unauthorized use, inspection, or disclosure.

Objectives
»Improving Processes and Technology
Description

The agency will focus resources and efforts to improve internal communication, remove manual processes, and create a collaborative work environment.

Strategies

• Create a collaborative mission-focused culture

• Continuous process optimization

• Enhance VUIS

Measures
No measures linked to this objective
»Improving Customer Journey
Description

Enhancing the VEC customer journey involves optimizing every touchpoint and interaction that claimants and employers experience with the agency. This objective focuses on streamlining processes to make them more user-friendly, ensuring that services are accessible, and providing clear and timely communication.

Strategies

• To be accessible and responsive to claimants and employers seeking assistance.

• Redesign the digital experience by upgrading the Agency's website and making educational resources clear and easily accessible.

• Increase first-contact resolution and online claim filing.

Measures
No measures linked to this objective
»Become a Resilient Agency
Description

Ensure the agency can rapidly respond to and scale with economic fluctuations.

Strategies

• Develop a Resiliency Plan that meets the objectives outlined in the Code of Virginia section 60.2-111 Section E.

• Consolidate risk management efforts.

• Establish a digital training and knowledge base to support team and customers

Measures
No measures linked to this objective
 
Supporting Documents
None
 
Program and Service Area Plans
Service Area 47002: Unemployment Insurance Services
 
Description

Service Area Description

The Unemployment Insurance Services Division administers programs and processes that provide temporary income assistance to qualified individuals who become unemployed or are faced with reduced employment. The main objectives for this Service Area are to alleviate hardship for the unemployed, prevent unemployment, promote reemployment, and provide stability to the economy.

The Unemployment Insurance System was created by the Social Security Act of 1935 in response to chaotic economic conditions created by the Great Depression. The program was established and continues today as a joint partnership between the states and the federal government. It is administered by states with oversight by the U.S. Department of Labor.

Unemployment Insurance Services is organized administratively into three components:


  • Tax - Establishes employer liability for state UI taxes used to fund the benefits paid to eligible claimants, collects UI taxes when due, monitors employer accounts for compliance through a program of audits, and follows up on delinquent accounts for collection.

  • Benefits - Determines eligibility for unemployment insurance benefits when claims are filed, adjudicates eligibility issues, and pays benefits when due.

  • Appeals - Handles resolution of disputed UI claims through a two-tiered appeals process (First Level Appeals and Commission Appeals). The Office of Commission Appeals is the final administrative adjudicative authority within the VEC in disputed benefit and tax liability cases.

Unemployment Insurance Services operates several programs to maximize integrity, detect fraud, and determine over/under payments. Included are the following:


  • State and Federal Treasury Offset Program

  • Benefit Payment Control Program

  • Eligibility Review Program

 


  • Benefit Accuracy Measure Program

  • Tax Performance System Program

  • Integrity Data HUB (IDH) in partnership with the National Association of State Workforce Agencies (NASWA)

In addition to the traditional state Unemployment Insurance Program, this Service Area administers the following unique unemployment assistance programs:


  • UCFE - Unemployment Compensation for Former Federal Employees

  • UCX - Unemployment Compensation for Ex-Military Personnel

  • DUA- Disaster Unemployment Assistance

  • EUC - Emergency Unemployment Compensation

  • TRA/TAA- Unemployment Assistance to workers impacted by U.S. import/export policies that result in downsizing and business closures

  • Federal Extended Benefits - Federally legislated programs that provide additional income assistance to individuals unemployed for long periods, due to severe economic conditions

The administrative and support services necessary to support the functions of this service area are also provided.


Mission Alignment and Authority

Title Ill and Title IX of the Social Security Act of 1935, together with the Unemployment Tax Act (29 U.S.C. 23) and Section 60.2 of the Code of Virginia authorize the establishment of and the requirements for the VEC Unemployment Insurance program. This Service Area aligns with the VEC's mission by providing temporary income support to qualified individuals as they seek to become suitably reemployed.


Products and Services
Description of Major Products and Services

Unemployment Insurance Benefits: The VEC is responsible for paying unemployment benefits to individuals who become unemployed through no fault of their own. This area administers the process to file claims, adjudicate issues associated with claims, and employ techniques to ensure the integrity of the UI program.

The unemployment insurance claims process uses convenient, user-friendly methods to access services. This includes the ability to file initial claims via the Claimant Self Service portal (VEC's flagship online customer portal) or by calling the Customer Contact Center. Once a claim is established, weekly continuing claims are processed online through the Claimant Self Service portal and through the telephonic Interactive Voice Response System.

Fact-finding reviews are conducted in order to resolve disputed claims. Determinations to qualify or to deny benefits are rendered and include appeal rights. Benefits that are paid or denied are subject to a system of checks and balances that ensures the quality and fairness of the process.

Unemployment Insurance Tax: The VEC is responsible for the accurate assessment and collection of unemployment insurance taxes from employers. The Agency uses a network of Tax Representatives throughout the state. These representatives provide employers with the information they need to ensure they are in compliance with both state and federal law.

Employers submit forms electronically. The convenient on-line system to register and file quarterly reports is available at https://www.vec.virginia.gov/employers/account-number.


Product / Service Statutory Authority Regulatory Authority Required or Discretionary GF NGF
Unemployment Insurance Benefits Virginia Unemployment Compensation Act, Chapter 6 Required $0 $517,783,228
Unemployment Insurance Admin Virginia Unemployment Compensation Act, Chapter 5 Required $357,167 $102,474,299
Financial Overview

The Virginia Employment Commission is funded by the United States Department of Labor administrative and benefit grants, and by the Unemployment Trust Fund. The Trust Fund is a non-general fund, maintained from the collection of Unemployment Insurance taxes paid by employers. The Trust Fund is appropriated exclusively for the payment of unemployment benefits.


Biennial Budget
  2025 General Fund 2025 Nongeneral Fund 2026 General Fund 2026 Nongeneral Fund
Initial Appropriation for the Biennium $632,167 $586,779,340 $357,167 $586,779,340
Changes to Initial Appropriation $0 $0 $0 $33,478,187
 
Supporting Documents
None
sp101 Strategic Plan - 12-31-2025 16:16:57