Maintaining the integrity of the Unemployment Insurance (UI) program is important
and helps ensure benefits are paid only to those who qualify for benefits under the law and
employers are assessed the proper tax rate.
- Claimants commit fraud by providing false or inaccurate
information to the department when filing a claim for unemployment benefits in an
effort to obtain monies to which they are not entitled.
- Employers commit fraud when they provide false information to the department in an effort to obtain a lower tax rating or deliberately misclassify an
employee as an independent contractor to avoid paying UI tax altogether,
or when they have knowledge that a claimant is submitting or intending to submit a false claim (aiding and abetting).
Multiple detection systems are used to detect people who fail
to report working and earning wages while claiming unemployment benefits.
The penalties for fraud and concealment are severe. In
addition to penalties, any overpaid benefits must be repaid. Repayment methods
include income tax interception, wage garnishments, property liens and payment
Report Unemployment Fraud
Frequently Asked Questions