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Washington State Employment Security Department

From Wikipedia, the free encyclopedia
U.S. state government agency
Washington State Employment Security Department
Agency overview
Formed1947 (1947)
JurisdictionState of Washington
Employees2,300 (2023)[1]
Annual budget$945.3 million (2023-2025)[1]
Agency executive
Websiteesd.wa.gov

TheWashington State Employment Security Department is a government agency for theU.S. state ofWashington that is tasked with management of theunemployment system. It was established by theWashington State Legislature in 1947, replacing an earlier system.[2] The department has been led by commissionerSuzan G. LeVine, the formerU.S. Ambassador to Switzerland and Liechtenstein, since 2018.[3]

History

[edit]

The Washington State Department of Social Security was created by the legislature in 1937 with divisions to manage the state'sunemployment benefits andemployment offices.[4] It was originally located in theOld Capitol Building in Olympia but outgrew its offices and was later furnished a separate headquarters building in January 1947. The Department of Social Security was reorganized into the Employment Security Department in the 1947 legislative session.[5] The department used large computers to process payments and data; by 1957, it had 65IBM machines with 440,000punch cards to process records for 600,000 workers in the state.[6]

During theCOVID-19 pandemic in 2020, the state unemployment system was the target of an internationalfraud scheme fromNigeria that cost over $650 million in losses. The system had processed claims for 30.8 percent of civilian workers in Washington, the highest of any state in the United States.[7] The fraud ring, namedScattered Canary by security researchers, had also filed fraudulent unemployment claims in six other states and is under investigation from theU.S. Department of Justice.[8] By early June, the state government had recovered $333 million out of the $650 million lost to the fraud scheme. The ESD had also implemented stricter reviews for unemployment claims that were later rolled back.[9] In August, the ESD announced that benefits for 86,449 fraudulent accounts totaling $576 million had been paid out, of which $340 million had been recovered.[10]

The ESD'strust fund originally held $4.7 billion in March 2020, but was reduced to $2.8 billion within three months and is expected to be depleted by 2021.[11][needs update]

References

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  1. ^abMcCarthy, Pat (November 14, 2024)."Accountability Audit Report, Employment Security Department, For the period July 1, 2022 through June 30, 2023".Office of the Washington State Auditor. Retrieved2025-06-22.
  2. ^"RCW 50.08.010: Employment security department established".Revised Code of Washington. Washington State Legislature. RetrievedMay 21, 2020.
  3. ^"Inslee names former Ambassador Suzi LeVine as new Employment Security Department Commissioner" (Press release). Governor of Washington. March 8, 2018. Archived fromthe original on May 8, 2018. RetrievedMay 25, 2020.
  4. ^Washington State Legislature (March 16, 1937)."Chapter 162: Unemployment Compensation Act"(PDF).Session Laws of the State of Washington, 1937.Washington State Legislature. pp. 595, 601. RetrievedJanuary 14, 2024.
  5. ^Washington State Legislature (March 19, 1947)."Chapter 215: Unemployment Compensation"(PDF).Session Laws of the State of Washington, 1947. Washington State Legislature. pp. 908–909. RetrievedJanuary 14, 2024.
  6. ^Shacklett, Dean (April 7, 1957)."Complex Machines Aid Employment Security Agency".The Olympian. pp. 1,7. RetrievedJanuary 14, 2024 – viaNewspapers.com.
  7. ^Roberts, Paul; Brunner, Jim (May 21, 2020)."Washington has lost 'hundreds of millions of dollars' to unemployment fraud scheme amid coronavirus joblessness surge".The Seattle Times. RetrievedMay 21, 2020.
  8. ^Brunner, Jim; Roberts, Paul; Malone, Patrick (May 24, 2020)."How missed 'red flags' helped Nigerian fraud ring 'Scattered Canary' bilk Washington's unemployment system amid coronavirus chaos".The Seattle Times. RetrievedMay 26, 2020.
  9. ^Roberts, Paul (June 4, 2020)."Washington's unemployment fraud may have hit $650 million; state recovers $333 million".The Seattle Times. RetrievedJune 4, 2020.
  10. ^Roberts, Paul (August 3, 2020)."Agency: Nearly 87,000 bogus unemployment claims filed in Washington state".The Seattle Times. RetrievedAugust 3, 2020.
  11. ^Roberts, Paul (June 29, 2020)."Washington state may need federal loans to cover unemployment claims by year's end".The Seattle Times. RetrievedJune 30, 2020.

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