Unemployment Insurance | Simon&Co., LLC

Unemployment Insurance Improper Payment Basics, Including Latest Policy Developments

Patrick Butler — Wed, 02 Sep 2026 14:29:51 +0000

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.

Unemployment Insurance Improper Payment and Fraud Analysis Download

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CAMI Publishes Updated Report on the Results of UI Staffing Flexibility

Simon&Co. — Fri, 04 Jun 2021 15:18:21 +0000

The Center for Accountability, Modernization and Innovation (CAMI) has published an updated report from Simon&Co. urging the enactment of permanent staffing flexibility, at states’ option, during surges in unemployment insurance (UI) claimants. These flexibilities were provided in Section 2106 of the Coronavirus Aid, Relief, and Economic Security Act – also known as the CARES Act – which was enacted on March 18, 2020.

This past December, CAMI published Simon&Co. research on the early results from states that used the flexibilities to hire contractors in order to support overwhelmed UI programs. Published as two reports, the surveys detail some of the specific work of the contractors as well as the accomplishments in terms of improved service to UI claimants.

The two December reports may be viewed here:

UI-Staffing-Flexibility-–-State-Results Download

Further-Results-from-the-Unemployment-Insurance-UI-CARES-Act-Staffing-Flexibility-CAMI-1 Download

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Of the 10 States with the Highest Share of Unemployed Workers Receiving Benefits, 8 are Using Staffing Flexibility Provided by the CARES Act

Simon&Co. — Fri, 05 Feb 2021 20:12:43 +0000

In a recent New York Times article on problems with the American unemployment system, Eduardo Porter highlighted how “the system gives states incentives to scale back coverage,” resulting in most unemployed workers receiving no benefits at all. According to the W.E. Upjohn Institute for Employment Research, New Jersey and Massachusetts were the only two states where more than 50 percent of unemployed workers received UI benefits.

Of the 10 states with the highest share of unemployed workers receiving benefits, 8 are using the new, temporary flexibilities provided to states for the hiring of contractors as part of the CARES Act (Section 2106). This staffing flexibility was created in order to support UI eligibility determinations as historic numbers of workers have flooded their state agencies since the onset of the pandemic. Simon&Co. is pushing for Congress to extend UI staffing flexibility, which is currently set to expire on March 14.

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