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Guidance Helps States Address Unemployment Insurance Integrity and Prevent Fraud

The U.S. Department of Labor today issued programmatic guidance to help ensure the accuracy of unemployment claims made due to the implementation of the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The Benefit Accuracy Measurement (BAM) allows states to select representative samples of payments and disqualifying ineligibility determinations to determine whether they were properly administered to claimants and whether these claimants were paid the proper amounts or appropriately denied. States can then use this information to develop and implement corrective actions to ensure taxpayer funds are spent properly by improving program accuracy. For unemployment insurance claims that were overpaid, underpaid, or improperly denied, BAM determines the cause of and the party responsible for the error, the point in the claims process at which the error was detected, and actions taken by the agency and employers prior to the error.

Since the passage of the CARES Act, many states have seen a substantial increase both in the number of individuals seeking unemployment insurance benefits and the dollar amount of unemployment insurance claims being paid. As a result, the Department is providing today’s assistance and guidance to help states respond to the challenges this surge in demand has presented to BAM data collection efforts.

The Department also encourages the reporting of unemployment insurance fraud in state systems. The list of all state unemployment insurance fraud hotlines can be found at https://www.dol.gov/general/maps/fraud.

Frequently asked questions on coronavirus-related unemployment insurance programs are also available here. Report fraud, waste, and abuse to the Department’s Office of Inspector General.