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Be Diligent: Fraudulent Unemployment Claims are On the Rise

HR Works has received multiple reports from our clients related to fraudulent claims of unemployment. Businesses are seeing a spike in claims come through for employees that are actively working. When the employees are notified by the business that an unemployment claim has been filed, many employees are denying that they filed a claim. Before the pandemic, there would be occasional claims filed in the name of an employee fraudulently, but this is now a much more widespread, rampant issue. According to the Washington Post, nearly every state unemployment department has experienced a massive amount of unemployment claims fraud. Much of this is being blamed on outdated systems within the states and scammers being enticed by the generous unemployment benefits under the CARES Act. Employees who are currently collecting unemployment benefits may see delays in their payments due to the onslaught of fraudulent activity.

Employers are encouraged to contact their state unemployment division as soon as possible when discovering unemployment fraud. The New York State Department of Labor provides an unemployment fraud reporting form that may be found here. Employers also have the option to call the New York State Unemployment Insurance Benefits Fraud Hotline at 1-888-598-2077. New York State employers should closely monitor their Notice of Experience Rating Charges (Form IA 96) to ensure their company is not being charged for fraudulent benefits. Any charges on the Notice of Experience Rating Charges should be protested. Additional information on how to protest fraudulent or incorrect unemployment benefits may be found in the New York State Unemployment Insurance Benefits – An Employer’s Guide.

HR Works Can Help

HR Works is here to help navigate your unemployment benefits questions. Virtual Helpline clients may contact the Helpline at (585) 381-8340, option 1 or via email at Employers who do not subscribe to the Helpline and would like more information on our Helpline Service may contact for a referral to a HR Works Business Development team member.

HR Works, Inc., headquartered in Upsate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.