ATLANTA – State Representatives Rhonda Burnough (D-Riverdale), Viola Davis (D-Stone Mountain), Kim Schofield (D-Atlanta) and Sandra Scott (D-Rex) urge for a criminal investigation following the Georgia Department of Labor’s recent internal audit, which found that more than $105 million in unremitted funds accumulated during the tenure of the previous GDOL administration.
“The attorney general of Georgia must open an investigation into how the former commissioner was able to accumulate more than $105 million in unremitted funds,” said Rep. Burnough. “This internal audit proves that the former Georgia labor commissioner was mismanaging the department, and it would not surprise me if he deliberately withheld unemployment payments from Georgians in their time of need. He also failed to update technology and install a communications system to address the backlog of unemployment claims.”
According to a recent GDOL announcement, the unremitted funds were a combination of administrative assessment fees, employer penalties and interest fees that were never remitted to the Georgia State Treasury. As required by law, current GDOL Commissioner Bruce Thompson authorized the full transfer of these funds to the treasury on August 3. The GDOL’s announcement about the internal audit may be found here.
“Legislators, elected officials and the public must advocate for an impartial audit and a criminal investigation of the GDOL and its previous commissioner,” said Rep. Davis. “Before the recent revelations, we sought transparency, accountability and rigorous oversight of the state and federal funding that flowed through GDOL. We requested audits and investigations because at least $23 billion went through the Georgia Department of Labor by the year 2022. However, the department’s previous leadership consistently declined to cooperate with essential data requests and failed to adhere to federal and state policies, rules and regulations.”
The Democratic state legislators are concerned that this internal audit verifies their ongoing concerns with the department’s operations and with the previous leadership’s handling of Unemployment Insurance (UI) benefits claims.
In light of the internal audit’s findings, these legislators are again calling for a federal investigation into the previous commissioner and the department’s handling of the UI benefit process.
Starting in 2020, these Democratic state legislators sent letters, requested state and federal investigations and filed open records requests regarding the influx of UI claims during the COVID-19 pandemic. Their goal was to understand the reasons behind denials and delays of UI benefits and ensure transparency and accountability in the process. Georgia’s Democratic congressional delegation also submitted letters in support of an investigation.
“We made individuals and families across Georgia our priority,” said Rep. Schofield. “The GDOL offices were closed; calls and emails went unanswered, and Georgians were left fighting to just survive and are still recovering to this day. Furthermore, the department did not request additional state appropriations to alleviate staffing issues when they had a chance. While I am grateful for the help of our federal lawmakers and former U.S. Labor Secretary Marty Walsh, our work is not finished. It is time for the state’s labor department to answer to the people of Georgia.”
“This latest audit reveals the need for a full forensic audit to trace the path of millions of dollars that flowed through the previous commissioner’s administration,” said Rep. Scott. “The initial $105 billion exposes just the tip of the iceberg of the department’s illicit activities. This negligence is not only criminal but also a betrayal of trust, inflicting pain, especially on African American families, who were disproportionately impacted.”
During the 2021 legislation, the Georgia General Assembly passed Senate Bill 156, legislation which aimed to improve oversight and transparency of GDOL. SB 156 was eventually vetoed by Governor Brian Kemp.
*Editor’s Note: Two letters submitted by Reps. Burnough, Davis, Scott and Schofield are attached.
Representative Rhonda Burnough represents the citizens of District 77, which includes portions of Clayton County. She was elected to the House of Representatives in 2016 and currently serves on the Economic Development & Tourism, Governmental Affairs, Higher Education and Small Business Development committees.
Representative Sandra Scott represents the citizens of District 76, which includes portions of Clayton County. She was elected to the House of Representatives in 2010 and currently serves as the Minority Caucus Chief Deputy Whip. She also serves on the Banks & Banking, Defense & Veterans Affairs, Human Relations & Aging, Insurance and Reapportionment and Redistricting committees.
Representative Viola Davis represents the citizens of District 87, which includes portions of DeKalb County. She was elected to the House of Representatives in 2018 and currently serves on the Defense & Veterans Affairs, Insurance, Interstate Cooperation, Natural Resources & Environment and Urban Affairs committees.
Representative Kim Schofield represents the citizens of District 63, which includes portions of Fulton County. She was elected to the House of Representatives in 2017 and currently serves as the Secretary of the Urban Affairs Committee. She also serves on the Creative Arts & Entertainment, Health, Interstate Cooperation and Small Business Development committees.
###