PA Dept. of Labor & Industry Announces Settlement with IBM

pa capitolCredit: Commonwealth Media Services

HARRISBURG, PA — The Pennsylvania Department of Labor & Industry (L&I) announced it has settled and resolved a lawsuit that the department filed against IBM in 2017 related to a project to upgrade Pennsylvania’s outdated unemployment compensation computer system.

L&I awarded IBM a contract in June 2006 to design and build the Unemployment Compensation Modernization System (UCMS), an integrated, comprehensive and modern system. L&I let the contract expire at the end of September 2013.

IBM has acknowledged no liability or wrongdoing, and both parties state they are pleased to have avoided additional litigation expenses.

Following an extensive discovery period and exchange of expert reports and opinions, the parties engaged in a lengthy negotiation and the settlement was reached.

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