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Department of Labor and Industry Issues UC Fraud Guidance

Responding to skyrocketing claims of Unemployment Insurance Fraud, the PA Department of Labor and Industry this week provided employers with helpful tips for reporting fraudulent claims.  When responding to a Notice of Claim Filed that you believe to be fraudulent, keep the following tips in mind:

  • L&I does not need any of the person’s actual employment information for identity theft situations. The fields on the response form do not need to be completed unless the system requires it (e.g., start date, end date, termination date).
  • The “Reason for Separation” field is always required. For identity theft claims, you should enter the reason as “Still working full-time.”
  • For employers using the new benefits system, a step-by-step guide is available here.
  • For employers not yet able to log into the new system but enrolled in SIDES, a guide is available here.
  • Employers who have hired a Third-Party Administrator (TPA) for unemployment matters can disregard any Notices of Application as the administrator should handle this matter.

The Department also wants to remind employers:

  • Appealing the financial determination is not the appropriate way to report a fraudulent claim. As the employer, you should respond to the claim notices but should not file a fraud report.
  • Ultimately, you will not be charged for benefits paid to fraudulent, identity theft-related claims. Once benefits are denied, your account will be credited.

The Department also noted they are implementing additional verification processes for the UC claims process.  Earlier this year, L&I announced that it was expanding a partnership with ID.me, an identity verification vendor, to dissuade fraudsters targeting the UC system.

PA Chamber: As Workforce Shortage Continues, States Across the Nation Pull Back Federal Unemployment Benefit Enhancements

HARRISBURG – PA Chamber of Business and Industry President and CEO Gene Barr issued the following statement regarding the impact the federal unemployment compensation benefit is having on a national workforce shortage as Louisiana Gov. John Bel Edwards becomes the first Democratic state executive to withdraw from the federal program:

“The current workforce shortage isn’t a problem in the business community – it’s a full-blown crisis. We are continually hearing from our members that despite Pennsylvania’s high unemployment rate and employers significantly raising wages, they still are having difficulty filling open positions.  This has forced employers across a broad spectrum of industries – including restaurants, construction, manufacturing and supply chain/logistics firms – to reduce hours or even close operations.  A recent U.S. Chamber survey found a significant number of respondents – more than half – are not in a hurry to return to work and 16 percent say the money they are receiving from unemployment benefits and other government programs makes it ‘not worth looking for work.’  

“As evidenced by Louisiana’s recent decision to withdraw from the federal program, this isn’t a partisan issue.  It’s simple math.  The private sector cannot compete against federal benefit enhancements that are in many cases paying individuals more than what they made in wages. 

“We encourage Pennsylvania to follow the lead of the majority of other states and scale back the Commonwealth’s participation in the federal program.  In order to fully return to a sense of normalcy and move past the pandemic, businesses must be able to fully re-open.  The business community has invested considerable resources in ensuring their operations are safe for customers and employees alike.  It’s time to get people back to work.”      

PA Chamber: Workforce Shortage Slowing Economic Recovery

HARRISBURG – PA Chamber of Business and Industry President and CEO Gene Barr issued the following statement regarding the current state of Pennsylvania’s workforce as employers experience challenges filling open positions:

“As Pennsylvania begins to re-open, employers are reporting serious workforce shortages which are hindering the state’s economic recovery.  Over the past several months, we have increasingly heard from our members that despite Pennsylvania’s high unemployment rate and employers raising wages, a large number are having difficulty filling open positions. This has forced employers across a broad spectrum of industries – including restaurants, construction, manufacturing and supply chain/logistics firms – to reduce hours or even close operations.  While expanding childcare options has been a priority for years, a recent study found that childcare issues are no longer significant factors in the nation’s employment recovery.  Rather, policies that are related to unemployment are exacerbating the current workforce challenges, including: continued waiving of the work search requirement and the additional $300 in weekly federal benefit payments, resulting in an estimated 40 percent of claimants making more in benefits than they were in wages.  As a result, 24 states have ended their participation in the enhanced federal benefit program.

“Despite claims to the contrary, the impacts of the enhanced federal unemployment benefits are not negligible.  Rather than just continuing these policies that have outlived their purpose, we encourage the Wolf administration to follow the lead of other states that are implementing innovative solutions to help encourage employment and connect unemployed Pennsylvanians with hiring employers.  House Bill 508, for example, would phase out federal benefit enhancements and create a return-to-work grant for workers who transition back into the workforce.”