Things you might want to know
New Hire Program Capabilities Expanded
Thanks to the National Directory of New Hires (NDNH), the Alabama New Hire Program has greatly improved capabilities. With information gathered from all 50 states, NDNH not only expands the amount of information available to detect potential overpayments (fraudulent and non-fraudulent), but also allows Alabama to match in-state new hire records faster.
NDNH is a centralized, automated repository of approximately 1.35 billion records on employment, unemployment insurance, and quarterly wage information. NDNH data matching helps stop or limit the overpayment of Unemployment Insurance (UI) benefits to claimants who fail to report new employment, improves fraud-detection efforts, and, ultimately, protects the Alabama UI Trust Fund. UI programs nationwide are implementing this program after successful pilot projects in several states.
Under NDNH, employers report information on newly-hired employees to the state child support agencies. The state then forwards the information, along with quarterly wage and unemployment insurance records, to NDNH. Cross-matching information in the NDNH database with unemployment insurance records allows Alabama Department of Labor to detect if a person has gone to work almost anywhere in the United States, but is continuing to claim Alabama unemployment benefits.
Alabama’s New Hire program dates back to 1994 when reporting a newly hired or a recalled worker was performed strictly on a voluntary basis. As a result of the Federal Welfare Reform Act of 1996, the Alabama New Hire program became state law in 1997.
According to Alabama Law, Act No. 97-228, employers are required to:
Once this information is collected, Labor is required by law to enter the data into our computer system, match the data with our records, and then submit the data to the Alabama Department of Human Resources in a timely manner. Information from employers is not placed on the “back burner,” but is given top priority.