The federal government is forcing Georgia to pay unemployment benefits for some part-time educational workers, a recent report says. Georgia Labor Commissioner Mark Butler in a recent press release acknowledged receiving notification from the United States Department of Labor (USDOL) that Georgia could be “out of conformity” with federal law for not paying unemployment benefits to certain educational workers during regularly scheduled holiday breaks.

According to the press release, Butler took steps in November 2011 to bring employees of private companies that provide services to Georgia school systems under the same rules under which public school system teachers and employees abide.

“The process took several months,”

Butler explained,

“There were notices put in the newspaper, public hearings, and a rule filing with the Georgia’s Secretary of State Office. We wanted to be sure that all educational workers were being treated equally and encourage these private companies to treat their employees fairly, too.”

The issue deals with schools that have outsourced services. In the face of a worsening recessional economy, school systems across the state have outsourced certain services to save money. One way they save money is by not paying employees for regularly scheduled breaks, such as spring holidays, Christmas break, and summer vacation. Further, the press release states the private outsourcing companies encourage employees to apply for unemployment benefits during these breaks, which has cost the state’s trust fund more than $50 million over the past five years. Conversely, though, in 2012 the USDOL said it was concerned that Georgia is interpreting its own state law incorrectly on the issue of educational workers. Butler said the state and the federal government had several discussions and decided the USDOL would be satisfied if Georgia revised some language in the state statute. On April second of this year, the USDOL sent a letter to Georgia, saying a hearing may be called that could threaten federal funding of Georgia Unemployment Insurance programs, unless the state makes retroactive unemployment payments. The total payments could be over $8 million to certain educational workers–employees of private companies, the press release stated.

Three days prior to receiving the letter, the Georgia General Assembly failed to enact statute revisions supported by Commissioner Butler, the Georgia Association of Manufacturers, the National Federation of Independent Business (NFIB), the Georgia Child Care Association and others.

“The federal government was sitting ready to issue this notice that will cost Georgia’s businesses about $8 million per year,”

Butler said.

“If this bill had passed, our businesses and public school teachers would have been protected and this would not be happening.”

On March first of this year, Brunswick Judicial Circuit Superior Court Judge Stephen G, Scarlett Sr. delivered an order saying there is no distinction between private employers and public employers for educational workers. Butler said these companies are “gaming” the system and workers deserved to be paid year-round like other public-employed educational workers.

“We will begin making retroactive payments to these company’s employees, because I will protect unemployment insurance and workforce programs for Georgians who deserve them,”

Butler said, adding that he will continue to work with the USDOL and the state assembly to assure equal treatment for all educational workers.

In 2011, the Gilmer County School System signed a contract with Southern Management Custodial Services to outsource its custodial staff. The move was an effort to save money, although the decision was made with much controversy. Employees effected by the shift were told that they could not apply for employment since Southern Management offered all the employees jobs. According to the contract, Southern Management offered custodians who were working for Gilmer at the time employment for 250 working days per year. “Services on holidays, when requested,” it stated, “shall be charged on an overtime basis.” FYN has attempted to contact Southern Management regarding paid holidays for Gilmer County Custodial workers. We have yet to receive a response.