State officials lay out timeline to replace Kentucky’s 40-year-old unemployment system | WDRB Investigates [Video]

LOUISVILLE, Ky. (WDRB) — Kentucky’s unemployment insurance system that was overwhelmed by record waves of unemployment claims during the COVID-19 pandemic is in the midst of its first overhaul in 40 years.

As businesses were locked down to contain the virus’s spread, tens of thousands of Kentuckians found themselves in limbo for months as they waited for their jobless claims to be processed, delays that became a nagging political problem for Gov. Andy Beshear.

Kentucky still uses the same decades-old system in 2024, but the state agreed in May to a six-year, $55.5 million contract with Deloitte Consulting to replace the antiquated technology.

“This new system will help us better meet the needs of Kentuckians by improving accessibility and claims processing times, as well as safeguarding against potential unemployment insurance fraud,” Beshear said in a news release earlier this year.

The state said the 90- to 120-day planning process with Deloitte is now complete, giving officials a …