Unemployment Fraud Under Attack : States/Feds

If there is one thing that we can always rely on in the life is when the government is involved, disaster is soon to follow and unemployment compensation is just one example. Getting the government out of our lives will save the country. Turning over control of most regulations to the states is a good start.

A good example of this is Wisconsin and how Scott Walker has turned a bleak future into a hope for prosperity despite the unions massive attack on him and his programs.

The true test will be the 'recall' of six Republican senators and three Democrats in a few weeks - the question that remains of course, will the people step up to the plate this time around, like they did last November, and show the whole country that they understand what is at stake here, not only in Wisconsin, but the country as a whole.

Our only saving grace will be the knowledge possessed by the voting public on what is at stake. If they fail here, on these recalls, all is lost.


Unemployment Insurance Waste and Fraud
Source: Paul Davidson, "Regulators Combat Unemployment Insurance Waste and Fraud," USA Today, July 5, 2011.

State and federal regulators are cracking down on waste and fraud in the unemployment insurance system, abuses that have hit record levels as jobless claims surge in a weak economy, says USA Today.

In the 12 months through March, the overpayment rate was 11.6 percent -- more than $1 for every $9 paid out, Labor Department figures show. That's up from the 12 months ending in June 2010, when a record $16.5 billion, or 10.6 percent of the $156 billion in jobless benefits disbursed to Americans, should not have been paid.

The overpayment rate was 9.6 percent in fiscal 2009 and 9.2 percent in 2008.
The main reason for overpayments is that some workers continue to receive unemployment checks even after they land a new job. Another problem is that many employers fail to adequately provide state officials the reason an employee left the company so the worker's eligibility can be determined. Also, some workers receive benefits even when they don't comply with state job search requirements.

How state and federal officials are trying to reduce overpayments:

A national directory of new hires lets states identify workers still receiving benefits even after they get a new job. A new computer system makes it easier for employers to report why workers left their jobs.

New rules let states recover improperly paid benefits from U.S. income tax refunds.
The Labor Department also has proposed legislation that would require states to impose penalties of at least 15 percent of excess payments on workers.