Labor Department Helps States Prevent Unemployment Insurance Fraud

They are giving states controls, tools and strategies to identify and combat unemployment insurance fraud.

I Stock 1311057678

The U.S. Departments of Labor and Treasury yesterday announced a new data-sharing partnership in an effort to support a multi-layered approach to fraud prevention by providing states with controls, tools and strategies to identify and combat unemployment insurance fraud.

The data-sharing partnership provides state unemployment agencies with access to Do Not Pay Working System data sources and services through the UI Integrity Data Hub.

Maintained by the National Association of State Workforce Agencies’ UI Integrity Center, the hub is a centralized, multistate data-matching system used by state unemployment agencies to aid fraud prevention and improper payment reduction efforts.

Administered by the Office of Management and Budget and operated by Treasury’s Bureau of the Fiscal Service’s Office of Payment Integrity, the Do Not Pay Working System provides a no-cost service for federal agencies and federally funded state-administered programs to verify claim eligibility and prevent fraud and improper payments.

The department’s Employment and Training Administration oversees the nation’s unemployment insurance system through federal-state partnerships. Providing state agencies with access to additional payment integrity data sources is one of ETA’s key antifraud strategies.

“To mitigate fraud risks and reduce improper payments, state unemployment agencies need access to the best controls,” explained Assistant Secretary for Employment and Training José Javier Rodríguez. “This partnership will allow states to access critical Do Not Pay data sources, which means they will be able to use existing infrastructure like the UI Integrity Data Hub more effectively to ensure the accuracy of unemployment payments.”

UI agencies in all 53 states and territories participate in the UI Integrity Data Hub. The Department of Labor oversees the UI Integrity Center’s operations and activities, including the management and maintenance of the UI Integrity Data Hub, and recently invested American Rescue Plan funding to support the integration of this new data source.

“The Treasury Department is committed to building partnerships with key stakeholders – including federally funded state administered programs – to ensure we’re paying the right person, in the right amount, at the right time,” said Treasury’s Fiscal Assistant Secretary David Lebryk. “Getting money out the door quickly to support those in need doesn’t have to mean weakening controls and safeguards. By expanding access to Do Not Pay through our partnership with National Association of State Workforce Agencies’, states will be better equipped to prevent and detect fraud and improper payments in their UI programs.”

More in Labor