Is It Fraud?
I have worked in the human resources field for many years and learned the labor laws for the states of New Mexico, Nevada, Oregon, Washington State, California, Pennsylvania, and even Florida. Before you learn if you can indeed report unemployment fraud, check to see if the state where you do business considers over-abusing the unemployment insurance system fraudulent?
Some states are pro employer and some are pro employee. For example, in Pennsylvania and many states in the Eastern part of the US, workers are only eligible to receive unemployment insurance if they lost their job through no fault of their own. This means if an employee was laid off or the business closed, they are usually eligible for unemployment insurance.
In other states, such as New Mexico and Nevada, which are more pro employee states, a person who has been terminated, even for misconduct, may still be eligible for unemployment benefits.
While the US Department of Labor (DOL) requires that every state have and make rules for their own unemployment insurance benefit program, the DOL does not require state policies to be equal across the board.
Before you consider how to report unemployment fraud, if you suspect it, call your state’s Department of Labor and ask about the rules on unemployment benefits and who is eligible to receive it. You should also inquire for how many weeks someone may receive unemployment insurance and what steps the DOL takes to ensure they are actively seeking another job.
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