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ARTICLE · 17 JULY 2013

Unemployment Overpayment Crackdown!

Fox Rothschild LLP
Fox Rothschild LLP
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Three new bills were recently introduced in the Assembly that seek to prevent and/or crackdown on the overpayment of unemployment benefits.

United StatesEmployment and HR

Three new bills were recently introduced in the Assembly that seek to prevent and/or crackdown on the overpayment of unemployment benefits.  The first bill aims to prevent overpayments by requiring more frequent wage reporting by employers.  After an audit was conducted by the Unemployment Insurance Services division of the Department of Labor and Workforce Development, it was determined that the lengthy delays in wage reporting results in payments being made to individuals who are no longer unemployed.   By increasing the frequency with which employers report wages, the Department of Labor will be better informed about when an individual who collects benefits obtains a new job.  Currently, employers are required to report wages within 30 days of the end of each quarter.  Under the proposed bill, the reporting requirement will be modified to be within 10 days of the end of each month.

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