Unemployment Insurance (UI) Improper Payments

In the past few years the Department has increased efforts to reduce improper payments by addressing the most common causes. People continuing to make claims even after returning to work make up close to 30% of all improper payments. Failing to register with the state employment service or meet state work search requirements makes up nearly another 30%. And untimely or inaccurate separation information from employers or third party administrators adds up to nearly 20%.

In many cases these are problems that can be addressed by providing and sharing information better. To address inaccurate or untimely information on separations, DOL has already helped Utah, Georgia, Colorado, New Jersey and Ohio implement the State Information Data Exchange System (SIDES), which allows electronic transmission of UI information requests from state agencies to multi-state employers and third party administrators. To address the issue of continuing claimants after they return to work, DOL has encouraged the use of the National Directory of New Hires to electronically identify who has returned to work. DOL is also providing messaging to claimants to make them aware of their responsibilities. In addition, we also announced a new pilot project using financial monitoring services to identify unusual payroll deposits.

Improved information sharing and targeted assistance to the states who need it most is working. Eight of the states with the highest Employment Service registration error rates have now seen a reduction of more than 35%.

State

SQSP /
Strategic Plan Development

Business Process Analysis¹

NDNH ROP

SIDES

SIDES Messaging²

Claimant — Employer Messaging

ES Registration³

TOP

Alabama

Alaska

1  

2  

Arkansas

1  

2  

3  

Arizona

3  

California

1  

2  

3  

Colorado

3  

Connecticut

1  

2  

3  

District of Columbia

Delaware

1  

2  

3  

Florida

1  

2  

3  

Georgia

1  

Hawaii

1  

2  

3  

Iowa

Idaho

3  

Illinois

2  

Indiana

1  

2  

Kansas

1  

2  

3  

Kentucky

Louisiana

3  

Massachusetts

2  

3  

Maryland

3  

Maine

3  

Michigan

1  

2  

3  

Minnesota

1  

2  

3  

Missouri

1  

2  

3  

Mississippi

3  

Montana

1  

2  

3  

North Carolina

3  

North Dakota

1  

3  

Nebraska

2  

New Hampshire

3  

New Jersey

3  

New Mexico

Nevada

2  

3  

New York

3  

Ohio

Oklahoma

1  

2  

3  

Oregon

3  

Pennsylvania

1  

2  

3  

Puerto Rico

3  

Rhode Island

1  

3  

South Carolina

2  

3  

South Dakota

1  

2  

3  

Tennessee

Texas

1  

2  

3  

Utah

1  

2  

3  

Virginia

1  

2  

Vermont

1  

2  

3  

Washington

2  

3  

Wisconsin

West Virginia

1  

2  

3  

Wyoming

1  

2  

3