The Unemployment Insurance (UI) program improper payment rate is any claims payment that should not have been made, or in an incorrect amount, including any payment to an ineligible claimant, and consists of all overpayments minus underpayments across states. improper payment is not synonymous with fraud but includes it.
On June 17, Acting Secretary of Labor Keith Sonderling issued formal letters to the governors of all states and territories demanding immediate action to combat fraud, waste and abuse in the UI program. The DOL announced in the letters that it intends to crack down on fraud and end mismanagement, improper payments, and “corruption” (presumably meaning fraud) within the program. The department further signaled its intention to use available enforcement tools, including, for the first time, withholding administrative funds from states to ensure compliance. Please see the full analysis below.