US Labor Department announces new tools to help states reduce improper Unemployment Insurance payments

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Mar 14, 2012, 06:17 ET

Resources promote claimant and employer compliance with state UI laws

WASHINGTON, March 14, 2012 /PRNewswire-USNewswire/ -- The U.S. Department of Labor today announced the availability of new tools to support state agencies in detecting, preventing and recovering improper Unemployment Insurance payments as well as combating UI fraud.

The Fraud Tips and Leads Gateway, a new online tool, provides the public with a portal to report fraud. It will help states act quickly to aggressively investigate tips and leads as well as prosecute bad actors. In addition, the Labor Department is publishing new, consumer-friendly materials highlighting the most common mistakes that claimants make and what businesses can do to avoid the negative tax implications of improper payments. The department is working with states and through the workforce system to broadly display these materials in public areas and to post them online.

"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 Secretary of Labor Hilda L. Solis. "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. The tools announced today will help educate consumers and businesses, and ultimately improve the UI system."

Over the next several weeks, the department also will reach out through a number of social media outlets to provide UI claimants with "quick tips" to learn more about their local One-Stop Career Centers, connect with state job banks and avoid mistakes that can lead to improper payments.

The resources announced today are part of an ongoing effort to help states reduce their improper payment rates. In September, the department created a new landing page that allows visitors to identify improper payment rates for each state and provides tips to help reduce these payments. The department also announced $192 million in grant funds to implement waste cutting initiatives and improve the UI system.

For more information about improper payments and to access the Fraud Tips and Leads Gateway, visit http://www.dol.gov/uiimproperpayments.

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SOURCE U.S. Department of Labor