House Industry and Labor Committee, February 11, 2026

Transcript

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1. 0:08:23

   Hey, it's 4:00, so we're gonna get started.

2. 0:08:29

   Uh, Bonner, do you wanna lead us in prayer? Hit your, hit your button.

3. 0:08:38

   All right, go ahead.

4. 0:08:39

   All right. Let's pray. Heavenly Father, we thank you so much for today, and we thank you for the opportunity to gather together to discuss these important issues, uh, for the state of Georgia. We pray for wisdom and discernment as we consider this information. In Jesus' name, amen.

5. 0:08:53

   Amen. Hey, I didn't put this on agenda because it would probably have gotten the room overflowing just to, um, for an announcement. But House Bill 1119, uh, Kasey Carpenter's, um, I am sending that to advisory council. And so they do not meet until the off season, so that bill will not be considered this year. And the author is okay with that, uh, because that's what we do with all bills that have to do with workers' comp.

6. 0:09:25

   So, thanks for his help on that. And with that, we're gonna move on to, have a very special guest, our brand new commissioner, um, Barbara Rivera-Holmes, if you wanna come up. Now, since you've got a PowerPoint, do you want the podium or the-

7. 0:09:44

   I'm gonna be here at the table

8. 0:09:45

   ... at the, be at the table. Okay.

9. 0:09:58

   And just so we can get to know you before you get into the professional aspect, tell us just a little bit about you, background, how you got to this chair.

10. 0:10:08

    Do you want my campaign story?

11. 0:10:09

    Yeah.

12. 0:10:09

    Is that what I need to do?

13. 0:10:09

    Yeah, yeah.

14. 0:10:11

    No, no. Well, thank you so much. Yeah. So I've been in the role as of sworn in in April, appointed in March.

15. 0:10:16

    Bring that mic toward you. Oh, I'm sorry. That was me. Table mic. Okay.

16. 0:10:20

    Okay. There we go. Really appreciate certainly the, the opportunity to be here and I'm honored that Governor Kemp would have the trust and confidence in me to lead such a critical department. My background, it's really quite varied. It starts off, I was a newspaper reporter, so I learned how to ask a lot of questions, listen really well, synthesize information, and turn it into something usable. I translated that into a career in economic development where I brought jobs and the capital investment to rural South Georgia where I still live. Then I became the CEO of the Albany Area Chamber, which is one of the state's most dynamic business advocacy organizations, really working on business, small business champions, and working with our policymakers at the local, the state, and the federal level to ensure that we do have these business-friendly policies that allow businesses to invest, to create jobs, and ultimately allow our communities to thrive.

17. 0:11:09

    Governor Deal appointed me to the Board of Regents in 2018, and so I spent seven years on the board helping align education to the economy and bringing a business and economic development perspective to how we align programs within the University System of Georgia. And then Governor Kemp asked me to do this work, which really ties in my full professional background into being able to today transform the Georgia Department of Labor and deliver for Georgians every day.

18. 0:11:34

    Sounds great.

19. 0:11:34

    Quick version.

20. 0:11:35

    So tell us how-

21. 0:11:35

    I'm a native of Puerto Rico. English isn't my first language.

22. 0:11:38

    Oh, wow.

23. 0:11:39

    So you'll have to bear with me if I don't say Al-ba-ny, if I just say Albany. Fantastic. Well, th-

24. 0:11:46

    You have better English than me, so.

25. 0:11:49

    Well, thank you again, Chairman, for the invitation to really talk about what we do at the Department of Labor. Not just our new strategic plan, but to really give you an update on who our department is, the critical services that we provide. And I'm here joined by my Chief of Staff, Jansen Head, and so many members of my executive leadership team. I think they're the only ones in the audience, but if you'll stand, wave excitedly again. There we go. So we've got some in the side. And so actually I'm gonna introduce them because I want you to know just how talented they are. Nicole Hill, which is on our legislative and special projects team.

26. 0:12:22

    You can stand and wave.

27. 0:12:22

    Hi, everyone.

28. 0:12:23

    It's like a beauty pageant. We have Denise Beckwith, who is the head of UI. She is one of the foremost experts in the country and is consistently sought out for her expertise within the UI system. We have Jeffrey Babcock on our legal team. Cory Smith, who is Mr. Labor Statistics for Georgia. Right here. You have to make sure you do the whole thing.

29. 0:12:43

    Okay. Okay.

30. 0:12:43

    Good. And Morgan Howard, who's my executive assistant, also a member of our legislative team. And then we have Clay. Oh, we've got Blake Poole, who n- needs no introduction, and he is our community affairs manager. And then Clay as well is on our communications team. So really talented members. These are some of the members of our team. But wanted you to have a introduction as to who they are, what they do, and how they serve Georgia. So the Georgia Department of Labor is where opportunities begin. And at its core, our mission is really quite simple and it's essential.

31. 0:13:16

    It's to serve all Georgia by creating an environment where workers and employers can succeed together. So every program, every service, every initiative that we lead is about connecting people to opportunity and strengthening the foundation of our state's economy. When a Georgian needs help finding work, they shouldn't have to fight through red tape. And when a business needs talent to grow, we'll help them find it. And when someone walks into one of our career centers uncertain about their future, they'll walk out with a plan. And so this afternoon I'm gonna walk you through the services that we provide, the plans that we're putting into action, and the outcomes that we're achieving so that you can see how we're modernizing our systems, supporting Georgians at every stage of their careers, and ensuring that Georgia remains the number one state for business and for talent.

32. 0:14:04

    The Georgia Department of Labor empowers individuals and employers through unemployment benefits, a statewide network of career centers, workforce support, labor market data that guides decision-making at the local, regional, and state levels. These services connect people to opportunity. And you're gonna hear me say that a lot. We connect people to opportunity to help ensure that Georgia remains the best. Our workforce reentry programs focus on individuals who need additional support to successfully return to work.

33. 0:14:35

    And we support employers and working families through youth work permits and employer unemployment tax assistance. The services, some of these are behind the scenes, but they're essential to a well-functioning labor market. Collectively, this work reflects GDOL's role as a strategic workforce partner for Georgia's economy. When Georgians face an unexpected job loss, unemployment insurance paired with re-employment services tailored to the needs of our communities provide a vital bridge to stability and a path forward.

34. 0:15:06

    Because unemployment insurance isn't just a safety net, it's breathing room. And with that breathing room comes services, training, and a path back to work. Assistance is available twenty four/seven at dol.georgia.gov through our 34 career centers and via our customer service team during business hours. This is our most public safe- facing service and responsiveness matters. And we really appreciate the house's budget recommendation to strengthen our call centers, which will help us better serve a growing workforce in a rapidly changing economic environment.

35. 0:15:41

    We believe serving Georgians is a team sport. And beyond funding, we value your partnership in iden- identifying service improvements. And I'll offer a recent example as our new constituent services email. After a request during our recent joint appropriations committee meeting, we quickly shared through this updated legislative contact information to support your work with your constituents. And many of you have already seen meaningful improvements as a result of that one stop and single point for constituent services. And while many of our services are available virtually, our 34 career centers remain a vital part of how we serve Georgians.

36. 0:16:16

    Each center shares one mission: helping Georgians figure out what's next. These centers support unemployment insurance claimants and connect job seekers to training, education, and employment opportunities through partners including the Technical College System of Georgia, WorkSource Georgia as well. And our career centers help chart a clear path back to work, strengthen local communities, and build the talent pipeline that drives Georgia's economy.

37. 0:16:45

    Now, just as our career centers guide individuals toward opportunity, our labor market data guides decision makers across the state. GDOL serves as Georgia's central hub for labor market information, collecting, analyzing, and publishing data that provides a clear picture of our economy, our workforce, and our job market. From employment trends to industry growth, occupational demand and wages, this data equips policymakers, employers, educators, and workforce partners to make informed decisions and helps keep Georgia competitive in a global economy by building hiring pipelines that match real business needs.

38. 0:17:24

    At Labor, we work to understand Georgia's economy and support those navigating it, both traditional job seekers and in- individuals experiencing barriers that keep them from fully participating in the workforce. GDOL executes two key initiatives for individuals who need that additional support returning to work. One is the Reemployment Services and Eligibility Assessment program, known as RESEA, and Walking the Last Mile to Reentry. Both are designed to reduce barriers, shorten time away from work, and strengthen Georgia's workforce.

39. 0:17:56

    RESEA delivers outcomes when time matters most by leveraging that labor market information that I shared, personalized reemployment plans, job search counseling, skills assessments, and connections to workforce partners. In concert, these services help individuals return to work more quickly and successfully. The result is shorter periods of unemployment, stronger job matches, and a faster return to stability for Georgia's families, which in turn is a faster return to a stable economy.

40. 0:18:26

    To truly strengthen Georgia's talent ecosystem, we have to continue to look wider and to the talent that's too often overlooked. That's why we launched Walking the Last Mile, our reentry to work program. Every year, thousands of justice-involved Georgians return home motivated, ready to work, and eager to rebuild. This program turns second chances into workforce solutions by giving participants training, credentials, job preparation, and a fresh start. By engaging participants before release and preparing them for employment, the program connects employers with motivated, job-ready talent while strengthening public safety and community stability.

41. 0:19:07

    Through partnerships with the Georgia Department of Corrections and the private sector, we are transforming the last mile of incarceration to the first step toward lasting employment and economic independence. These efforts, from reentry to reemployment, all point to a larger goal, and that's ensuring that Georgia has the workforce it needs to thrive. Because as you know, for 12 years, Georgia has been the top state for business. And now we're building a top state for talent, and that doesn't happen by accident.

42. 0:19:38

    It requires a coordinated system that supports workers, employers, and communities at every stage. And the Georgia Department of Labor plays a critical role in that system. From stabilizing families during job loss to rapidly reconnecting people to work, to providing the data that guides economic development and education decisions, GDOL helps ensure Georgia has the skilled, resilient workforce that employers need. Through career centers, reemployment programs, reentry initiatives, and strong partnerships across state agencies and the private sector, we help translate Georgia's economic growth into real opportunities for our citizens.

43. 0:20:17

    So as you can see, GDOL is more than a service provider. We are a strategic partner in Georgia's commitment to remaining the nation's top state for business and a top state for talent.

44. 0:20:32

    Now, when Governor Kemp appointed me commissioner, he was very clear about the task, and it was to transform Labor into an agency that works at the speed of Georgia's economy. And so I promised that we would do things in three phases. And so first we're focusing on what's necessary, then we'll focus on what's possible, and then soon we'll be doing what everyone thinks is impossible. Since taking office, I've met with workers, employers, and community leaders across the state and their message is clear. A strong Georgia depends on a labor department that keeps pace with today's market and delivers measurable results.

45. 0:21:06

    The Georgia Department of Labor is rising to meet that challenge by evolving into an organization that is forward-thinking, future-focused, and resilient. That is why we recently launched our new comprehensive strategic plan, The Future of GDOL: A Bold Transformation. Our plan is built on four pillars. A customer-centric transformation, empowering talent and leadership, modernization and operational excellence, and strategic influence and partnerships. Together, these pillars design our path forward and they align directly with our budget priorities and reinforce legislative initiatives that expand opportunity, strengthen our workforce, and fuel Georgia's continued economic growth.

46. 0:21:50

    The conversations that I've had across the state, across your districts, have shaped every initiative in our plan from how we deliver unemployment benefits to how we connect talent with employers. 'Cause every day Georgians come to us with real questions about their future. They bring urgency, they bring uncertainty, but they also bring hope. And our responsibility is to meet them with answers and a clear path forward. And that responsibility is what is driving our transformation. It is a new era at Labor and it's one that requires us to rethink how we measure success, how we use technology, and how we deliver service because transformation goes beyond processes.

47. 0:22:27

    It's about redefining how we show up for the people and the businesses of Georgia. We are building an agency that leads through change, not one that simply reacts to it. That means strengthening our systems and empowering our people and reimagining how we deliver services so that we can meet the needs of a modern workforce. This is about more than modernization though. It's about becoming the kind of agency that Georgians can rely on today and in the future. At the center of this transformation is a simple principle.

48. 0:22:58

    Every Georgian deserves timely answers, clear guidance, and a path forward. We are strengthening communication by using plain language and improving how information is delivered so people can understand their options without confusion. We are creating more seamless services by streamlining operations and removing unnecessary barriers that slow people down. And we're expanding rapid access, enhancing digital tools, improving call center responsiveness, and building a more agile service-oriented agency.

49. 0:23:30

    These changes reflect a deeper commitment to transparency, to accountability, and to human-centered service. When Georgians reach out for help, they deserve answers and they deserve them quickly. At its core, as you can see, this transformation is about people and that's why we're investing in our own workforce, our greatest asset, to build a high performing future ready team. We are strengthening leadership at every level of labor through depart- development programs that, for emerging and experienced leaders.

50. 0:24:01

    At the same time, with that focus on transparency, accountability, and regular communication, we have consistent one-on-one engagement between our leadership and our staff which reinforces a culture not just of excellence but one of remarkability. When our team is supported, equipped, and empowered, they are better able to deliver the level of service Georgians expect and deserve every single day. This transformation affects how we work faster, smarter, and with greater resilience. Labor is aligning strategy, technology, and operations to drive efficiency and reliability across the agency.

51. 0:24:38

    A cornerstone of this effort is modernizing our legacy infrastructure, the largest such effort in state history. We are transitioning to a secure cloud-based system designed to improve the user experience, reduce fraud, and significantly accelerate claims processing. Our broader modernization strategy addresses long-standing challenges such as call center delays, technical bottlenecks that affect workers and employers. With upgraded infrastructure and streamlined workflows, we will reduce red tape and deliver services more effectively.

52. 0:25:11

    Transformation also strengthens how we partner and when GDOL partners, Georgia wins. Workforce support and employer engagement remains central to our mission and we are expanding our job matching infrastructure to better connect Georgians with meaningful employment while helping businesses access the skilled talent they need to grow. This work is amplified through collaboration, employers, workforce boards, community leaders, and educational institutions creating a more responsive and aligned talent pipeline. We are honored to be part of Governor Kemp's talent strategy team and to work closely today with the Georgia Department of Education, the Technical College System of Georgia, WorkSource Georgia, the University System of Georgia, and other partners to build hiring pipelines that fuel high demand careers at the regional and state levels.

53. 0:25:59

    So I wanted to give you that not quite so brief update on what we do because it's important that we have clarity around what we do and why these services matter. And so I really thank you again for your time and for the opportunity to be here. Your partnership and your feedback, they strengthen our systems, they elevate our services, and they help us deliver, deliver mission critical support to the Georgians who depend on us. And we value that leadership in, in making Georgia the best place to work and live and do business. So we look forward to working with you throughout the remainder of the legislative session on behalf of all Georgians.

54. 0:26:34

    It's a bold new era for the Georgia Department of Labor and we are proud to move forward together. And with that, I'm happy to answer any questions.

55. 0:26:43

    You've got some. Do I get to go first? I just wanna say that, um, as you know, you and I met during the off session, and, um, I can tell you it's a new vibe at Department of Labor. And, um, and I think, uh, you know, a lot of people have talked about how great a job our current governor has done, but one of the things that we don't talk about that I think will be one of his greatest legacies is the people he's put in leadership. And, uh, when I think about you, Commissioner King, uh, Commissioner Dozier, and just folks that are, um, have truly been transform- formative, so I appreciate that.

56. 0:27:21

    Um, I'm gonna take these in order. Chairman Bonner.

57. 0:27:26

    Thank you, Mr. Chairman. Thank you, Commissioner, for being here. Um, could you just for a minute, um, kinda talk about what the Department of Labor is doing for our veteran community and how that, that interaction takes place?

58. 0:27:38

    I really appreciate the question. You know, I, I live in Albany, Georgia, in southwest Georgia, which is one of Georgia's military communities and the home of its only Marine base. And so ensuring that our veterans, our military spouses or active duty have pathways to employment in Georgia with minimal barriers is important. I see that every day, again, as somebody who lives in a military community, and I've seen the barriers that exist. A few years ago, we worked closely with Representative Ballard on HB 880, which of course created the, the expedited occupational licensure for military spouses.

59. 0:28:08

    What we're doing now is having conversations with Commissioner Patricia Ross over at Veterans Affairs and with others to better understand what the veteran population is experiencing with respect to barriers to reenter the workforce, and then being a partner with them. We're active with the Georgia Joint Defense Commission in conversations with them. Now, of course, it's under the Department of Economic Development, so we've been speaking with Commissioner Pat Wilson about how we can provide more resources, expertise, and be a partner at the table to ensure that we can translate veteran experience into the civilian workforce.

60. 0:28:42

    When we think about veterans and we think about active duty military spouses as a, as a broader component, they're the kind of talent that our employers are hungry for. They're disciplined, they're patriotic, they're respectful, they're task-driven. And so we can strengthen Georgia's workforce by identifying and continuing to remove those barriers and giving them that pathway into the civilian workforce.

61. 0:29:05

    Thank you.

62. 0:29:05

    Yes, sir.

63. 0:29:08

    Uh, uh, Representative McQueen, did you-

64. 0:29:11

    Mc-

65. 0:29:11

    Okay.

66. 0:29:12

    Thank you, ma'am. You got me or-

67. 0:29:14

    Are you 16? Who's 16?

68. 0:29:16

    Oh, I'm sorry. That's me.

69. 0:29:17

    Okay, you were first. Go ahead.

70. 0:29:19

    Okay.

71. 0:29:19

    I'm sorry.

72. 0:29:20

    That's okay.

73. 0:29:21

    I don't even have a number.

74. 0:29:22

    Okay. Yeah, I, I, I don't even think this i-

75. 0:29:25

    Wait, who's, who's 16?

76. 0:29:26

    I don't know. There's no nu-

77. 0:29:27

    Uh, just-

78. 0:29:28

    That's me, okay.

79. 0:29:28

    Ms. Schofield, you're up.

80. 0:29:29

    Thank you. Thank you, Commissioner. Uh, just a couple questions. Um, first question is you mentioned about the 34 career centers. I wanted to know how many of them have closed. Uh, what are the number of closed, uh, career centers that we are now experiencing throughout Georgia?

81. 0:29:45

    I've not closed any career centers.

82. 0:29:47

    Yeah, okay.

83. 0:29:47

    And so we have two career centers that are in transition, and that's the DeKalb Career Center, which is transitioning to a new location, and the Statesboro Career Center, which is also transitioning to a new location. I believe that one actually is opening back up. I've got the date here. So the Statesboro will open mid-month, so it's, it's about to... It opened in mid January, I'm sorry, and it's now at 127 Main Street in Statesboro. And then the DeKalb Career Center will, is scheduled to open March 2nd at 4572 Memorial Drive in Decatur.

84. 0:30:22

    Thank you. I, I just have two more questions. Um, so what is the, uh, average wait time now for the appeal process?

85. 0:30:30

    Denise, do you have more details on that?

86. 0:30:33

    Yeah. Right now it's about, it's running about, uh, about 50 days. We're almost to the 45-day mark.

87. 0:30:43

    Okay. And is there any plan to move that to a faster f- appeal process? I'm still getting some calls.

88. 0:30:53

    Sure. One of the things that we've addressed in our strategic plan is really enhancing our processes so that we can, A, respond to claims faster, but also streamline our appeals process. Now, there is a process with the Board of Review that is outside of the Department of Labor. It's really a governor-appointed board, and there may be some delays there, but we continue to work to really try to streamline processes overall so we can get Georgians the support they need faster.

89. 0:31:18

    All right. Two more questions and that's it, um, 'cause I'd like to meet with you offline. Um, there was, a while back, they, there is in s- state code, the state advocacy, the GDOL State Advocacy Council.

90. 0:31:30

    Mm-hmm.

91. 0:31:31

    Advisory Council, I'm sorry. Advisory Council. That has not been quite reinstated to the level of what the, uh, the s- the code and the statute says. I'd like to discuss at some point how do we get that reinstated.

92. 0:31:42

    Absolutely.

93. 0:31:43

    Okay.

94. 0:31:43

    Yes, thank you.

95. 0:31:44

    And then the, the last question that I had, and you mentioned a little bit about your internal talent pipeli- pipeline, but how does that trickle down to people that are non-management staff? Um, is there-

96. 0:31:55

    That's part of our pipeline, yeah.

97. 0:31:57

    Uh, is there a path... I'm, I'm, again, I'm, there, there are just some questions and concerns I hear from employees there that that's not being equitably done in a way that's promoting from the bottom up. It's always the top up.

98. 0:32:10

    No, I appreciate that question. And so, you know, we're, we're doing things differently at Labor, and we've been in office, I've been in office less than a year. Our strategic plan rolled out just a few months back. But empowering that talent and really looking at our hiring processes, our, our process for guiding people through that leadership pipeline is something that we're very focused on. We initiated an entire leadership development program within Labor that really looks at talent and gives them a pathway, and we continue to make improvements. And so I know that our HR department, which was just voted one of Georgia's, Georgia agencies top five human resource departments by the Department of Administrative Services, is really focused on equitable hiring as well as equitable pathway to leadership.

99. 0:32:53

    So thank you for letting us know that what we're doing, w- we know it's relevant, but if you're hearing it, too, then we're certainly on the same page.

100. 0:32:59

     Okay. Thank you.

101. 0:33:00

     Thank you, ma'am. And we look forward to speaking with you offline about your other concerns and ideas.

102. 0:33:04

     Thank you.

103. 0:33:06

     Chairman Carpenter.

104. 0:33:09

     Chairman Cameron. Or Representative Cameron.

105. 0:33:11

     Thank you. Well, thanks. I appreciate it. Thank you, Mr. Chairman. Yeah. Yeah, I know. Hey. I know.

106. 0:33:18

     Hey.

107. 0:33:18

     Hey, what? Hey, uh, good afternoon. Uh, obviously, you've hit the ground running, but is there anything that surprised you when you, when you hit the ground in, in the Department of Labor? I mean-

108. 0:33:29

     There's a couple of things, yeah. So one of the things, and I'll say how hungry people are for the Georgia Department of Labor to show up externally and, and really be there for Georgians. I can tell you that we have a great team at the Georgia Department of Labor. We have about 800 employees who wake up every single day across Georgia focused on how they can better serve people. But the department has experienced some significant challenges during the last few years, and some of that is to do with some funding, some of that is to do with services.

109. 0:34:00

     Certainly, we saw what happened during the pandemic. And some of that has to do with our legacy systems. We're running Georgia's unemployment platform on code and infrastructure built in 1986, and we're expecting to do business at the speed of 2026, which we've never done business as fast as we are today, on a platform that was built 40 years ago. So some of those challenges really feed into that space. What I've also just noticed is a, a hunger also from members of the Georgia General Assembly to see how they can better support the department now that there's a plan in place.

110. 0:34:37

     And so what... I love a strategic plan. I ha- have a business development background, and so I, I formulate plans along with a lot of stakeholder feedback so that we can deliver on that. And what I know has been appreciated is that, A, we have a plan. And so across the agency today, we have employees who know where we're going, how we're getting there, what winning looks like for Georgians. So there's clarity around purpose and around how we work and a- around what results look like, but we've also tied our budget priorities to that.

111. 0:35:08

     We've tied our legislative priorities to that so that it's in concert. So my biggest surprise has been how... Again, I use the word hungry, but how hungry people are for Labor to really step out beyond where it has been. Obviously, that requires resources, and so we've made pretty significant asks of the Georgia General Assembly to be able to deliver on what you've said that you want.

112. 0:35:31

     Thank you.

113. 0:35:32

     Thank you very much. Representative McQueen.

114. 0:35:39

     Thank you, Mr. Chairman. You cut me off?

115. 0:35:42

     What number are you?

116. 0:35:43

     18.

117. 0:35:43

     18.

118. 0:35:45

     Try it again.

119. 0:35:46

     Thank you, Mr. Chair- thank you, Mr. Chairman. And thank you, uh, Commissioner, for, uh, for being here too. And it's-

120. 0:35:52

     Sure

121. 0:35:52

     ... it was great seeing you Monday night at, uh, Bones as well to-

122. 0:35:55

     Yes

123. 0:35:55

     ... uh, at least, uh, out of the element just a little bit. But I guess my concern is, um, you know, I look at, at workers' rights and, and all of that, and as well as misclassification and increasing minimum wage, and, you know, that's just the space I'm in. And I just, uh, I'm always concerned about our workers, you know, where we are, uh, with our, our minimum wages, and w- also misclassification of employees.

124. 0:36:27

     Um, and I know that your predecessor put something in for misclassi- m- making sure that there was a way to, to, for employers to, to, to reach out and say, "This is what's going on." Um, are you maintaining that? You keeping that going? Because I definitely wanna make sure that, uh, if you're a, a, a W-2, you need to stay a W-2 and, and not a 1099.

125. 0:36:55

     Well, we do have a process for auditing a misclassification. Denise, would you like to speak a little bit on that process?

126. 0:37:01

     Go, go to the podium 'cause everything is live stream.

127. 0:37:10

     We want you forever in the archives.

128. 0:37:13

     Okay. Oh, wow. Um, yeah, we do. We, that's our... We do have a group in our tax department. So when we do get reports of misclassification, we do perform audits. We also are required, actually, it's a, a, a federal measure that we are required to, uh, to audit a certain amount of employers per year. Um, and that's what we do. We go, we audit their, uh, uh, their books, basically, their, the accounting records, and that's one thing we're tasked with, is to look for misclassification.

129. 0:37:49

     We work really closely with the IRS, too, on that.

130. 0:37:53

     Thank you, Mr. Chairman. And I guess my, I guess my follow-up to, uh, that question was, uh, just to make sure that, uh, that we, that the, the system is still, still up and running, that there was a way that people could, could do it and not know exactly who was... You know, retaliation has always been a key to workers when they, when they s- they, they say this is going on, and I just wanted to make sure that was still, that was still there.

131. 0:38:19

     Yeah, we do have an online reporting system, so if, if somebody reports that, it will go into, uh, our, our tax department that will conduct an audit on that.

132. 0:38:30

     Thank you, Mr. Chairman.

133. 0:38:31

     Okay.

134. 0:38:32

     And thank you all, too, for keeping that, too.

135. 0:38:33

     Yeah.

136. 0:38:33

     Appreciate you.

137. 0:38:34

     And I'm gonna follow up on that, but, and we may come back to that at the end, but, but I think that is Georgia's number one problem, is misclassification, and it's getting worse and worse, where folks are taking advantage of workers. You know, they're putting on salary, they're not getting paid their overtime. Um, and so, and, and it gets brought up every year in this committee, and I, and I tell folks, "We don't need legislation. We just, we need enforcement." And so, and it, this may be for one of you.

138. 0:39:05

     So what happens if I'm caught with misclassifi- with, with ma- misclassified workers?

139. 0:39:18

     Before Denise talks about that, I just wanna let you know that this auditing work is obviously very important and you recognize that importance. We recognize that we need more resource to be able to audit more employers to make sure this is on board. We presented those budget recommendations or requests to OPB. An additional 12 tax auditors is in the governor's recommended budget for the Georgia Department of Labor. So we can do exactly what you're saying needs to be done. So I wanted to make sure that you, you knew that as we move forward.

140. 0:39:43

     Okay.

141. 0:39:44

     But what we do, they, there would be a penalty because if we determine that they are, uh, W-2 workers or res- that they were responsible in p- in paying unemployment taxes, they would be required to q- uh, file corrected, uh, reports and it would be, since they did not file those correctly, they'd get a penalty and if they don't pay it immediately, they're gonna incur interest but they do get a penalty.

142. 0:40:13

     Okay. I appreciate that.

143. 0:40:13

     We also have additional tax agents in our budget requests and in the governor's recommended '27 budget which would allow us to do the auditing piece on the front end and have more agents to collect on those penalties.

144. 0:40:25

     Okay. And I was just talking in the back that, um, had this thought walking across the street, that's how recent it was, um, some kind of education. I wonder how many employers

145. 0:40:41

     are not... I don't know, in my mind I had, I, I thought maybe we need a poster next to the other three labor, labor posters saying, "This is what a W-2 looks like. This is what a 1099..." I just, even in my hometown I see it abused and if I'm seeing it that much in a tiny, tiny town then it's, it's gotta be rampant. But anyway, we'll talk about that. Um, continuing, uh, Representative Holly.

146. 0:41:10

     Thank you, Mr. Chairman. Thank you, uh, Madam Commissioner, for being able to, to, to come here and, um, I know there's been a lot of changes over the, uh, past few years. I was actually, um, had two questions. One, um, first one if you don't mind, kind of on the lower income scale. Uh, we know that, uh, Georgia, uh, has, uh, for those individuals who are on SNAP, they're required, um, to report those 80 hours, um, with their trying to seek gainful employment.

147. 0:41:40

     Wanted to know particularly, um, what has, since you've been, um, at the helm, uh, what has the agency been done to actually make sure, um, that it is actually tracking, uh, those hours and ensuring that there may be some supports in place for those who may find that, uh, cumbersome?

148. 0:41:58

     No. Great question. And so as we continue to evaluate where the gaps are in the organization, workflows and making sure that we have the right resources to be able to deliver on that service is critical. Part of our strategic plan, again, is, goes to addressing how we're supporting Georgians through that process. So our UI division does a lot of education around that as well. Our RESET system, which I talked about earlier, does a lot of work with Georgians as well so that they know what the rules are. We're also just translating that into rules that people understand, right?

149. 0:42:31

     A lot of our language is just difficult to, to comprehend. I think the only one that really gets it is our legal team. Is that right, Jeff? I'm just kidding. 'Cause that was a joke. It didn't land. But because it's so complex, our rules and regulations are so difficult to understand. So we're, we're not just doing the work on the processes part. We're just making sure that people actually can understand what the rules are so that they can, they can take advantages of the services that are available to them. Yes.

150. 0:42:57

     Um, just to, uh, add to that, Re- uh, Representative. So, uh, DHS reached out recently. We've been actively reaching out to all agencies, looking at how we can be better partners or just communicate. And if we can't partner, just be a resource. Again, people, now that, uh, Commissioner Holmes is in place and we're building out our team, they see that we, we want to help, um, with what we got. We, we wanna help. And so DHS reached out to look at ways that we can partner with them to help SNAP, um, beneficiaries and look at who else can help with wraparound services, who can help get the word out, who can help educate.

151. 0:43:33

     And so we have started those quarterly meetings with DHS. Um, I don't think we have any significant progress. I think it's more like, "Hey, what does the state have? And where there's gaps, where can we get other people in the private sector to partner with us?" So that is something that we are talking about. I can check in with our team to get an update and then follow up with you, um, in an email or a conversation.

152. 0:43:56

     Well, thank you. I, I appreciate that. That would, that would, that would be very helpful. And just a, in a small follow-up, um, uh, this kind of on the other side of the scale, the kind of the upper, uh, side of the income scale. Uh, I know, um, you know, in years past in the Department of Labor, uh, when, um, uh, Ms. Denise's former boss, uh, it was, uh, the agency focused a lot on, uh, for those who found themselves out of work, um, to reposition them and f- and gear them more towards, uh, technical, uh, jobs and, and technical expertise.

153. 0:44:31

     And sometimes that would be difficult for individuals who, for instance, had, um, graduate degrees, uh, you know, who were actually specialists in their field and to have to go back and to completely turn it around. I wanted to know, um, has Georgia Department of Labor, um, have any strategic, uh, alliances, uh, perhaps even with, um, um, the, you know, those who are on the higher side of the income, on the executive search firms? You know, be- just because, you know, someone's, you know, i- if, if the job market is tight- Um, because of global competition, you know, perhaps even other states bringing in their work or workforce in there, um, it may not mean that necessarily a, um, a master's degree level individual needs to go back to school and become an electrician.

154. 0:45:20

     Nothing bad about that. But is there anything in place in order to try to bring in top talent and, and provide those jobs for those who are qualified?

155. 0:45:28

     No, that's a great question. And so first, we provide services, right, to all, all Georgians who walk through our doors, regardless of income or education level. What we work through with our team, and also as a partner with WorkSource Georgia, is to really take where people are and try to align them as closely as possible to the type of job they had or where their skill sets most fit. And so, you know, if we think about job, job positions today, if you take away titles, you can really have more flexibility in what your skill sets allow you to do.

156. 0:46:00

     And the job may sound different, but you can use the same skill sets. So we're working through that. We're also just bringing in more partners along the way. I spoke, I think it was today, or it may have been yesterday, to the Georgia Staffing Association and working with others such as that, consulting firms, to really make sure that we just have more partners at the table. We c- we can't solve everything, and certainly, I mean, you would understand that, but we're a connector. We are a convener, we're a collaborator, and so we take that role very seriously in utilizing our resources and leveraging the power of partnerships to bring more opportunities for Georgians.

157. 0:46:35

     Thank you.

158. 0:46:38

     Representative Park.

159. 0:46:39

     Thank you, Mr. Chairman. Um, uh, Commissioner Holmes, thank you so much for being here. Apologies for, uh, missing, uh-

160. 0:46:45

     You missed all the good stuff

161. 0:46:46

     ... I missed all the good stuff. Uh, apologies, uh, if my questions are also repetitive, uh, repetitive or if you touched upon them already. Uh, first, since we had, uh, folks, you know, who enforce the worker misclassification statute, um, I did have a specific question with respect to legislation this committee passed, which would be, um, if an employer does provide benefits to an employee, does that... W- would that trigger the misclassification statute?

162. 0:47:12

     Jeff Denise.

163. 0:47:14

     What are, are you talking about?

164. 0:47:15

     Yeah, say that again.

165. 0:47:16

     Uh, so, so if an employer provides an independent contractor any sort of benefits whatsoever, uh, would that then, would that one factor be dispositive in any significant way, uh, such that they should be considered an employee as opposed to an independent contractor? It, it would be a factor. Uh, it'd be a strong factor, but I don't know that it would be dispositive. Okay. Thank you.

166. 0:47:39

     Jeff is on our legal team.

167. 0:47:41

     Thank, thank you for that, um, clarification. Um, so I had a few additional broader subjects that I'd love your thoughts and perhaps some updates on. Um, in terms of the workforce shortage, um, in Georgia, um, would you be able to provide any updates there? I know you've done, um, and have advocated for competitive wages, wages such that, you know, folks can afford a mortgage. Um, you know, my understanding is if we have a tight labor market, we have this massive workforce shortage, that should at least be increasing wages, but we haven't necessarily seen that.

168. 0:48:12

     Um, can you provide some updates and, and maybe highlight some of the barriers or challenges with respect to what we're seeing in the market and perhaps, you know, some additional actions that this body may be able to take to ensure that, one, the workforce shortage is being met, um, c- certainly for essential jobs, jobs in infrastructure and construction, manufacturing in particular, uh, but also the wage aspect. Um, you know, w- why are, y- you know, why are we not seeing Georgians move toward those jobs that are paying more in light of these massive workforce shortages that have persisted for years?

169. 0:48:47

     Yeah, no, great questions, and I do appreciate them. So a couple of things, and we talked earlier about the workforce itself. And so I think of the workforce as a circle, and there's, you know, 5 million or so Georgians that are active in the workforce. Then you have people on the periphery. You have your veterans, which we talked about a little bit earlier, your second chance hires, your military spouses, people with disabilities, youth, your returning retirees. And so part of the work that we're doing, we have one program specifically for second chance hires and are working with other partners and state agencies on other opportunity populations, is evaluating the barriers.

170. 0:49:20

     Because we have, we, we have a tight labor market, but we have people that can work. There exists barriers for those in the periphery to permeate into the workforce. So we're working through that. That second chance Walking the Last Mile program is one component to reducing barriers. The second piece I'll speak to is really about aligning education to the economy. And so I can tell you as a local economic developer working with small businesses, manufacturers, global companies headquartered in South Georgia, P&G, Miller, Procter & Gamble, all of these, the challenge isn't that we don't have people.

171. 0:49:53

     The challenge is that we have a skills misalignment, which is why the governor's Top State for Talent initiative is so important. And so I really, really give recognition to not just the governor, but the Georgia General Assembly for recognizing that that alignment is what allows us to move forward. And so through the high-demand career pathways that we see across the state, but I'll say more importantly, the regional high-demand career pathways that then give visibility for our educators and our local employers and our local workforce partners to say, "In my regional economy, this is where the wages are growing.

172. 0:50:27

     This is where the jobs are growing. Let's tailor our program so that our regional local citizens can take advantage of these paths versus going into fields that, A, displace them from the regional economy or that don't have a path through growth either because there's not career growth in that industry or there isn't real wage growth." So those are s- some of the avenues that are in place. Others Continuing again to align education, not just at the local level, but again at the state level, and just working closely with the Department of Education and their CTAE pathways with technical college system, with the USG as well, and other workforce partners to give insight into that.

173. 0:51:07

     And you know, if you're, if you're someone in a local community and you wanna work, I'll just... If we're all gonna use the Procter & Gamble example, you're, you're a high school student, you wanna go work at P&G because you know it's gonna be a great job, but you, you may not know, like, "How do I work at P&G? What kind of skills do I need?" And so what we've been doing is sort of peeling back, and we're working through this with Top State for Talent and helping our chambers and communities do this, is create visibility into it. If you wanna work in manufacturing, I'll just again use the P&G example, they need, they need technicians, they need accountants, they need marketing, they need healthcare professionals at the facilities, they need engineers, they need custodians.

174. 0:51:47

     They need a full spectrum of people with different capabilities and abilities. We have to make sure that we are providing the access to the training and giving people that visibility into what those pathways and opportunities are.

175. 0:51:59

     Okay. Um, um, this may be more a theoretical question if I may, Mr. Chairman. Um, you know, I know Georgia's unemployment rate is around 3.5, 3.6% right now. Um, what is our labor force participation rate? Has that continued to... I- i- has that been kind of steady? Is that decreasing? I'm always concerned, uh, with respect to, um, you know, some of our data not being able to capture the full picture, um, especially in this age of disruption, um, and technological acceleration in which, you know, coding job, you know, a year ago, six-figure job, right?

176. 0:52:31

     Lots of folks spend a lot of time, effort, education to get that, which is now gone for the most part, especially with, uh, AI and would like to continue to see this. But is- has there been a better way to kinda capture what we're seeing in the overall, uh, um, uh, labor force that, you know, may not rely simply on more antiquated data or, or, or numbers or figures?

177. 0:52:53

     We're doing a couple of things, and I'll say that part of what we do is certainly have a lot of conversations, right, with our employers. But I really would like for Corey Smith on our team, who is Georgia's labor market statistics director, to just walk you through high level, Corey, how the data is formulated, and that may be helpful to your question. You have to go to Corey.

178. 0:53:15

     Sure. So on the civilian labor force side, to produce the unemployment rate, which like you alluded to, stands at 3.6% as of December, um, and it's up, uh, from 3.5% in November. But what happens is that we survey, uh, uh, people that, that the, uh, the survey that we use to produce the unemployment rate is, is called the household survey because in essence that we contact, uh, the individuals that live in Georgia and ask them are they working or are they not?

179. 0:53:48

     Uh, that they let us know if they are or not, and so we are able to use that information to accurately produce the unemployment rate. So as long as those individuals are letting us know, you know, that they are or aren't working properly, that the, that the statistics show that we can produce a pretty good rate, and as we're saying, that's 3.6% right now.

180. 0:54:07

     Do, do Georgia's determination in those figures depend on the Bureau of Labor Statistics or any of the federal numbers?

181. 0:54:13

     Correct. So all of our, or most of our stats are in cooperation with the federal government. Um, uh, that the resources that the state provides, we need that offset from resources that the federal government provides. So we call it a cooperative program that they can't produce the data without us, we can't produce the data without them. And so collectively, uh, that we are able to, able to work together regularly to produce the best numbers possible.

182. 0:54:40

     That's helpful. Thank you. Uh, last question, Mr. Chairman, if I may. Uh, could you provide an update on the, um, unemployment insurance, um, trust fund, the solvency?

183. 0:54:49

     Sure, I'd be happy to. Corey, thank you so much for-

184. 0:54:51

     Thank you

185. 0:54:51

     ... going through that. That's a great question and something that we've been talking about with members of the general assembly. And so the unemployment trust fund, in, in short, is not solvent, right? And so we saw that it was depleted in September 2020 during the pandemic, and we are at one... Oh, I have it in my notes earlier. We're about a billion and a half dollars short of being solvent. So the U.S. Department of Labor says that solvency is $3.48 billion. We're a billion and a half dollars short of that.

186. 0:55:23

     So it's a challenge, and it's something that should be focused on. What we have been sharing with those that, that we've been having discussions with are strategies that could help strengthen the UI trust fund. And so I'm happy to go through these if you'd like some ideas now, or we can speak to them offline.

187. 0:55:41

     Speak offline.

188. 0:55:41

     Okay.

189. 0:55:41

     Or, or just a few top-line ideas.

190. 0:55:43

     Sure.

191. 0:55:43

     If you don't mind.

192. 0:55:43

     A few top-line ideas. There's a couple of things. You know, we- there's a, a, the administrative assessment, so that, that's a statutory authority that allows us to collect the administrative assessment from employers. If that's allowed to lapse, which it would sunset at the end of this year, that would redirect about 20 million that's now going to the state treasury into the UI trust fund. So that's one. There are, you could appropriate state funds. So states including Texas have directed funds into their UI trust funds to accelerate solvency.

193. 0:56:15

     You could establish a waiting week period, which 42 states right now require a one-week waiting period before their claimants can receive benefits. Georgia does not have that waiting week, and so we essentially pay two weeks upfront and then move through that. On average, our claimants are on UI benefits r- for about eight weeks. They can take advantage of benefits for up to 14 weeks, so many do secure employment within the shorter period. So if you establish a waiting week, you can essentially save one week's worth of benefits that would then stay in the trust fund.

194. 0:56:52

     And then you could adjust the taxable wage base, which is not something that we recommend, but certainly is an option. So Georgia's taxable wage base is 9,500 per employees. It's the fourth lowest among the eight southeastern states. The lowest is Florida and the highest is North Carolina at 32,600. Having a lower taxable wage base does keep Georgia more competitive naturally, right? You have, you have less strain on employers. They can create more jobs, they can invest more. And so we don't recommend it, but we're always very transparent about what some of the options are.

195. 0:57:26

     And so these are, these are some that we've evaluated that we could continue to discuss, but we also wanna hear what ideas you, you and your colleagues may have with respect to the trust fund.

196. 0:57:36

     Uh, thank you, Commissioner. Uh, l- last question, um, and, and, uh, Mr. Chairman, I'd, I'd be curious as to whether or not we're gonna have a bill, uh, to ensure that this does not expire. Um, a- as the commissioner noted with respect to, uh, uh, the ability to assess, uh, admin fees for employers and that, that doesn't just go into the general fund. Uh, in light of the challenges with the UI, uh, with the solvency of the UI trust fund, would you say that the State of Georgia, uh, and, and, you know, that which is under your purview, would be prepared for a recession if, if one were to occur, uh, over the next 12 months with respect to a spike in unemployment claims?

197. 0:58:11

     It depends on the severity of the spike in un- unemployment, and, and that's gonna drive what the output of the benefits are.

198. 0:58:19

     Thank you.

199. 0:58:22

     Chairman Carpenter.

200. 0:58:23

     Yes, thank you so much. So quick question, it's something, and this is just random thought, uh, by Jack Handy. Um, I was thinking about when I, when I collect, when I pay my unemployment tax, I've always find, found it odd the, the base rate, the 9,500. Have you thought about...

201. 0:58:46

     I, I, I just, I think it reward, obviously it rewards companies that have less turnover, right? Because if you're in an industry that has a lot of turnover, a lot of folks never get to that 9,500. So has there ever been conversations of lowering the rate more and, and not having the, the base rate? Does that make sense? Does, does anybody... I don't know if you could study that and find out from other states if they don't have a base, but it's just a flat... If you're paying .3% now, just drop it to .15, and it, it is what it is whatever they make or something like that.

202. 0:59:20

     No.

203. 0:59:20

     Does that make sense?

204. 0:59:20

     I understand what you're asking. We certainly, l- l-

205. 0:59:22

     Because you definitely penalize companies that have turn- like restaurants, a lot of turnover. I mean, I would argue that most restaurants probably half their employ- employees never get to that base. So you're paying for them all year, but yet my management I stop paying in July. So it's just, it's, you know what I'm saying?

206. 0:59:37

     Yeah.

207. 0:59:37

     It's just kind of... And I find it bizarre. Um, seems like to me it'd m- make more sense just to smooth it out over the entire year, but obviously.

208. 0:59:44

     We can certainly look into that.

209. 0:59:45

     Absolutely. Thanks so much.

210. 0:59:46

     Thank you.

211. 0:59:47

     Oh, and one other question, something that, uh, light bulb went off when we were talking about, um, you were talking about partner with staffing companies. Is there, are you able to provide staffing companies with information of people that have just been put on unemployment that are in need of employment? I- i- is there some HIPAA or whatever issues with sharing that kind of information? It wouldn't be HIPAA, obviously, but whatever that code word is.

212. 1:00:11

     Data privacy.

213. 1:00:12

     There you go. Ding, ding.

214. 1:00:13

     Yeah.

215. 1:00:13

     But-

216. 1:00:13

     We have some pretty strict regulations around data privacy, but we do work with partners at WorkSource Georgia to be able to... The Geo- there's an, a, a, an employment site in Georgia about jobs available, and so we work, we have a data sharing agreement with WorkSource, which is part of the Technical College System of Georgia.

217. 1:00:30

     Sure. And, and I think of it l- as a lot like dating, right? Sometimes people are shy and don't wanna ask, and they wanna be called, "Hey, I got a job. You wanna come check it out?" So just, just a thought. There's, make it a two-way street.

218. 1:00:43

     Thank you.

219. 1:00:45

     Well, you've exhausted all the questions. We certainly appreciate the update, and well...

220. 1:00:51

     Yes, I want, um, uh-

221. 1:00:55

     Okay

222. 1:00:55

     ... Representative Carpenter had a, had a good one on that. Um, so with the limits on the sharing, and oftentimes when I have to speak to, uh, the Goodwill Career Centers, if they get a hire, uh, there's no way for them to actually know, um, without sharing any personal identifying information of, of that applicant. Is there a way where for those partners you're able to be able to just confirm on, from your own side to say, "Hey, um, the person, uh, about which you've requested, um, they have been hired." Is, or is, or is that too, uh, too secretive?

223. 1:01:31

     I'll have to check with our team to see really what those limits are.

224. 1:01:34

     Okay. Thank you.

225. 1:01:37

     Okay. I think we have exhausted any questions, and of course, she is super available if any of y'all want to get with her online. And with there being no further business, we're adjourned.

226. 1:01:48

     Thank you, sir. Thank you.