Laid-off workers who got unemployment insurance payments they shouldn’t have received are being targeted by the U.S. Labor Department under a new program announced Wednesday.
The department said the announcement was part of an ongoing effort to reduce improper unemployment insurance payment rates.
In California alone, about 6.51% of all unemployment benefits – a total of nearly $1.8 billion in the last three years – went to people who shouldn’t have received them, the DOL said.
The department listed a variety of reasons workers may improperly receive unemployment payments ranging from claiming benefits after returning to work to not meeting the state’s requirement for showing they sought work.
http://liarcatchers.com/insurance_fraud.html
Other violations involve claimants receiving severance pay, vacation pay, Social Security, pension or sources of income other than wages while they claim benefits but they don’t properly report the income.
As part of the program a new online Fraud Tips and Leads Gateway tool has been created that will allow the public to report unemployment insurance fraud so states can try to recover the money.
The department’s announcement said the tool “will help states act quickly to aggressively investigate tips and leads as well as prosecute bad actors.”
“Reducing improper unemployment insurance payments is crucial to maintaining the integrity of this vital lifeline for millions of American families and we each have a role to play,” said Labor Secretary Hilda L. Solis in a statement. “Too many people don’t know their responsibilities under the program, and too many businesses don’t know what’s at stake for them, especially the tax implications.”
To report unemployment insurance fraud by workers or employers, you can go to the California Employment Development Department’s online fraud reporting website.
To call about fraud by unemployment recipients call 800-229-6297.
Fraud by businesses that aren’t paying or are underpaying payroll taxes can be reported at 800-528-1783.
Reasons in California for improper unemployment payments
Reason % of improper payments
Returned to work 39%
Disqualified from receiving benefits 21%
Not registered with the state job bank 13%
Other Issues 11%
Wages over-reported 8%
Unavailable for work 6%
Severance, Soc. Sec. or other income 1%
Other Eligible Issues 1%
Can’t show they looked for work less than 1%
