News Release, Maryland Department of Labor, Licensing, and Regulation
Implementation of Web-Based System Reduces Fraud and Waste
BALTIMORE (April 2019) – The National Association for State Workforce Agencies (NASWA), a national organization promoting state innovation and leadership in workforce development, today recognized the Maryland Department of Labor, Licensing and Regulation’s Division of Unemployment Insurance for outstanding performance and implementation of the State Information Data Exchange System (SIDES). SIDES is an innovative tool that helps employers respond to unemployment insurance requests quickly, more easily, and with greater accuracy.
“We are honored to be recognized by NASWA for our consistently high participation with SIDES,” said Acting Labor Secretary James E. Rzepkowski. “SIDES supports our commitment to customer service and accessibility by making it easier to exchange information between our team and our customers and partners, which also helps streamline and protect the integrity of the UI process.”
SIDES is a web-based system that allows accurate and secure electronic transmission of information regarding unemployment insurance (UI) claims between UI agencies, employers, and third-party administrators (TPA) to reduce fraud and waste in the system. Its standard format creates consistency across state agencies and increases the speed of the electronic exchange of information, allowing for a more complete transaction.
“These employers, TPAs, and agencies’ dedication to safeguarding taxpayer dollars in the UI system for those who are truly in need is remarkable,” said Scott B. Sanders, executive director of NASWA. “Maintaining the integrity of the UI system is everyone’s business and these employers, TPAs, and agencies have taken that mission seriously.”
A 2018 study found when state and territory unemployment insurance agencies, in conjunction with employers and third-party employer representatives, utilized the secure State Information Data Exchange System to transmit and verify UI claims information, the relevant data was significantly more accurate and timely than that of entities who did not utilize SIDES.
The study also showed that employers and third-party employer representatives who utilized SIDES to transmit and verify UI claims data with UI agencies experienced a significant reduction in time and paperwork associated with traditional verification of former employee UI claims data.
“The Maryland Division of Unemployment Insurance is proud to accept this award from NASWA and gratefully acknowledges the hard work and efforts of our staff and leadership team,” said Assistant Secretary Dayne Freeman, head of the division.
The announcement was made at the organization’s national conference for state workforce members, employers, and third-party administrators in Nashville.