The Arizona Department of Economic Security (DES) has been using ‘automated systems’ or artificial intelligence to flag Pandemic Unemployment Assistance (PUA) claims for fraud and overpayments. This has apparently created a huge back load of cases that need to be adjudicated. The average time for an appeal of a DES overpayment ruling was considered to be 45-90 days, now it is taking over 6 months and sometimes as long as 9 months just to get a hearing. After a ruling ‘in favor of the claimant’, DES again makes people wait weeks or months to even acknowledge the claimant won their appeal.

One might question if DES has any liability for the rulings that artificial intelligence makes when reviewing claims to determine fraud or ‘non-fraud’ overpayments. And if underpayments are discovered in the process, is there any interest or other liability DES would have to pay? What does Gemini (the Google AI) think about this? The questions and answers follow.

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Question: If the Arizona Department of Economic Security used “automated systems” {or artificial intelligence} to help process claims and disqualify recipients for overpayments of PUA in 2020 and 2021, who is responsible if mistakes were made and recipients were falsely blamed for overpayments?

Answer: Determining who is responsible for mistakes made by automated systems in PUA overpayments in Arizona depends on a few factors:

The extent of automation:

• Simple Flagging: If the system only flagged potential overpayments for human review, then the human reviewer would be responsible for verifying the information before issuing a final decision.

• Automated Disqualification: If the system automatically disqualified recipients without human oversight, then Arizona DES might hold some responsibility for the initial error.

The nature of the mistake:

• Coding Errors: If the system was programmed incorrectly, then Arizona DES would likely be responsible for fixing the code and potentially compensating those wrongly disqualified.

• Data Errors: If mistakes resulted from inaccurate data provided by employers or government agencies, then the source of the data error might share some responsibility.

The appeals process:

• Right to Appeal: Arizona DES should have a clear appeals process in place for those who believe they were wrongly disqualified. If the appeals process allows for a fair review and chance to correct errors, then the burden of responsibility might shift to the claimant to demonstrate their eligibility during the appeal.

Here’s a breakdown of potential parties responsible:

• Arizona DES: If the system’s design or coding caused errors, or if there were inadequate safeguards against faulty data, then Arizona DES might hold some responsibility.

• Claimant: The responsibility could fall on the recipient to provide documentation and participate in the appeals process to demonstrate they were not at fault for the overpayment.

• Data Source: If inaccurate information from employers or government agencies led to the mistake, they might share some responsibility (though this is less clear-cut).

Recommendations:

• Contact Arizona DES: If you believe you were wrongly disqualified for a PUA overpayment, contact Arizona DES and inquire about the appeals process. You can find their contact information on their website (https://des.az.gov/contact).

• Gather Documentation: Collect any documents that support your case, such as paystubs, employment verification, or communication with Arizona DES.

• Seek Legal Aid: Consider seeking legal aid from organizations specializing in unemployment benefits issues. They can advise you on your rights and options in the appeals process.

By following these steps, you can increase your chances of resolving the issue and potentially getting any overpayment designation overturned.

Question: If underpayments of benefits are discovered in the appeals process, is there any interest or other liability Arizona DES will have to pay to settle the claim?

Answer: Interest on Underpaid PUA Benefits in Arizona

Generally, states do not accrue interest on underpaid unemployment benefits. This means that even if underpayments are discovered and corrected during the appeals process, you likely won’t receive additional compensation beyond the original benefit amount.

Why No Interest?

Several factors contribute to this:

• Social Safety Net: Unemployment benefits are primarily considered a social safety net, not a financial instrument.

• Administrative Burden: Calculating interest on numerous small amounts would be a significant administrative burden for state unemployment agencies.

• Legislative Intent: State legislatures typically focus on providing timely and accurate benefit payments rather than interest accrual.

Exceptions and Considerations

While it’s uncommon, there might be specific circumstances under which interest could be applicable. These are usually tied to systemic errors or exceptionally long delays caused by the state agency.

• State-Specific Laws: It’s essential to check Arizona’s specific unemployment laws. There might be provisions related to interest or penalties for delayed payments.

• Legal Counsel: If you believe your case warrants interest or additional compensation, consulting with an attorney specializing in unemployment benefits could provide more specific guidance.

In conclusion, while it’s always worth inquiring about potential interest or additional compensation, the likelihood of receiving it for underpaid PUA benefits in Arizona is generally low.

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So even though the state can force a claimant to pay interest on an overpayment, the claimant usually cannot get interest if they discover they were shorted on benefit payouts, even if it has taken DES four years to figure out their mistakes.

There’s also no apparent way to hold DES accountable for the long delays in processing appeals or for ghosting people who have won their appeals. Even though being ghosted by a government agency that should have paid you addition benefits fours years ago brings back the emotional and financial trauma experienced during the pandemic.

In the long run (now four years) the costs of using artificial intelligence for pandemic unemployment claims has probably cost the state of Arizona much more money then they have recovered via the process. The suicide and homeless epidemics in Arizona seem to fall squarely at the feet of inept government agencies like the DES. In the end, the alliance between Arizona DES and artificial intelligence actually makes sense. Neither are capable of any real compassion for a human being going through a hard time.