Update on the Office of the Unemployment Compensation Ombudsman, 2nd Quarter, FY 2026 (January 1, 2026)

Summary

A letter dated January 1, 2026 from Commissioner Melis of the Virginia Employment Commission (VEC) to the Governor, committee chairs and the Commission on Unemployment Compensation. Its subject line is an update on the Office of the Unemployment Compensation Ombudsman for the 2nd Quarter, FY 2026, provided under the Appropriation Act, Chapter 725. It reports that the Escalation Team received 7,028 cases and closed 6,693 cases in the second quarter of FY 2026, with customers contacted within 41.8 hours and cases closed within 3.9 days on average. The Chief Customer Advocate section describes meetings with legal aid attorneys and sessions for employers planning seasonal layoffs, then lists recommendations to VEC leadership. Attachment 1 is titled Escalation Case Trends in Quarter 2, FY 2026.

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Demetrios J. Melis                                                                              Post Office Box 26441
Commissioner                                                                                Richmond, VA 23261-6441
                                                     January 1, 2026


           TO:       The Honorable Glenn Youngkin
                     Governor, Commonwealth of Virginia
                     P.O. Box 1475
                     Richmond, Virginia, 23218

                     The Honorable R. Creigh Deeds            The Honorable Jeion A. Ward
                     Chair, Senate Commerce and Labor         Chair, House Labor and Commerce
                     Senate of Virginia                       Virginia House of Delegates
                     P.O. Box 396                             P.O. Box 7310
                     Richmond, Virginia 23218                 Hampton, Virginia 23666

                     The Honorable Adam Ebbin
                     Chair, Commission on Unemployment Compensation
                     Senate of Virginia
                     P.O. Box 396
                     Richmond, Virginia 23218


           FROM: Demetrios J. Melis, Commissioner

           RE:       Update on the Office of the Unemployment Compensation Ombudsman – 2nd Quarter,
                     FY 2026

           Dear Governor, Chairmen, and Madam Chair:

           Per the Appropriation Act – Chapter 725, Item 356 I. (Regular Session, 2025) of the
           Commonwealth of Virginia, the Virginia Employment Commission (VEC) is required to provide a
           quarterly report to update the General Assembly on the Unemployment Compensation
           Ombudsman, to the Governor, House Labor and Commerce Committee, the Senate Commerce
           and Labor Committee, and the Commission on Unemployment Compensation. This letter serves
           to meet that requirement.
Specialized Escalation Team:
The Ombudsman function, led by VEC’s Chief Customer Advocate, continued to deliver timely
and effective support to Virginians seeking unemployment assistance during the second quarter
of FY 2026. Through the support of a dedicated Escalation Team of 12–15 staff members, the
office addressed complex and high-priority cases, helping customers overcome barriers within
the VEC’s systems. The team consistently resolves issues within 48 hours on average, including
cases escalated from other VEC units and legislative offices, improving access to services and
customer resolution outcomes.

In the second quarter of FY 2026, the Escalation Team received 7,028 cases and closed 6,693
cases. On average, the Escalation Team was successful in contacting customers within 41.8
hours and closing cases within 3.9 days. Approximately 65% of those customers contacted the
VEC through a customer contact form on the VEC website, highlighting VEC’s progress in
expanding direct lines of communication with its customers. This online form and collaboration
with the Escalation Team have helped reduce the wait times for those who prefer to call the VEC.

Additionally, the Chief Customer Advocate continues to pay close attention to the case
escalation trends. Most cases that needed escalation this past quarter belonged to customers
who faced delays in receiving their payments (18%). Challenges with using the online services
and the filing of initial or weekly claims (16% each) were also other noticeable trends in the
second quarter of FY 2026. Long-term data analysis remains essential to helping the Chief
Customer Advocate identify any operational inefficiencies and propose potential solutions.

Stakeholder Engagements:
The Chief Customer Advocate responded directly to 588 emails and 551 phone calls from
individuals who contacted his office. More than 80% of those emails came from claimants who
faced difficulties accessing the VEC’s online system or needed explanations about their VEC
claim determination. The remaining 20% of emails came from employers. Those queries from
employers were primarily about access to their online accounts, tax –related queries, or about
penalties imposed on employers for failing to respond to the VEC in a timely manner.

The Chief Customer Advocate also held approximately 38 meetings with several legal aid
attorneys who represented various claimants. Those meetings required the Chief Customer
Advocate to review the claims in question, provide data regarding those claims, and make the
necessary referrals to the Appeals, Adjudication, Monetary, and Benefit Payment Control
departments of the VEC, when appropriate.

Lastly, the Chief Customer Advocate organized several sessions for employers who planned to
conduct seasonal layoffs. Those employers were primarily from Southwest Virginia. The Chief
Customer Advocate educated the employees about the VEC’s processes and provided
information to human resources staff about employer responsibilities. There was also a
collaboration with the VEC’s Escalation Team to provide real-time online support during several
seasonal shutdowns. That collaboration was necessary because some of the affected claimants
in Southwest Virginia required additional assistance in navigating the online claims portal.
Chief Customer Advocate’s Recommendations:
The Chief Customer Advocate was able to provide several recommendations to the VEC
leadership, in response to feedback that was gathered during his interactions with claimants. For
instance, he relayed information regarding claimants who had previously assumed that all mail
from the VEC would come in envelopes that have official Commonwealth markings. In response,
the Office of Communications has started to educate claimants who choose to receive their
payment via debit cards to anticipate receiving those cards in envelopes that may not have the
VEC’s logo on them—an initiative that is preventing unnecessary delays in making timely
payments through external vendors. Similarly, after the latest federal workforce transitions that
resulted in layoffs, the Chief Customer Advocate recommended several language changes to the
VEC website to make it easier for former federal employees to navigate the unemployment
insurance process.

To conclude, the efforts underway significantly contribute to ensuring that Virginia’s
Unemployment Insurance program and benefits are easily accessed and understood by all.
Please do not hesitate to contact me at demetrios.melis@vec.virginia.gov with any questions.


                                                    Sincerely,



                                                    Demetrios J. Melis
                                                    Commissioner



Attachment 1: Escalation Case Trends in Quarter 2, FY 2026


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