DOL: immediate action from governors on unemployment insurance fraud

U.S. Department of Labor ^ | 6/17/26 | obrien.david.a@dol.gov

[spintreebob]

Acting U.S. Secretary of Labor Keith Sonderling issued formal letters to the governors of 53 U.S. states and territories today, demanding immediate action to combat FRAUD WASTE ABUSE in the unemployment insurance program.

The department announced its intent to crack down on rampant FRAUD and end mismanagement, improper payments, and CORRUPTION within the UI program. Acting Secretary Sonderling notified states that, in partnership with the IG, the department will use every available enforcement tool—including withholding administrative funds from states for the first time in history—to ensure compliance in protecting UI system integrity and safeguarding taxpayer dollars.

“We are officially putting governors on notice,” said Acting Secretary Sonderling. “The American people will no longer tolerate the blatant WASTE FRAUD ABUSE of their hard-earned tax dollars — no state should allow it either. If states allow it, they will suffer the consequences. This department is no longer afraid to use every lever available to ensure taxpayer money is protected.”

Inspector General Anthony D’Esposito added, “The days of excuses are over. States that fail to protect taxpayer dollars should expect consequences. Acting Secretary of Labor Keith Sonderling and I will use every available enforcement tool to demand accountability, recover stolen money, and ensure unemployment benefits only go to eligible Americans.”

Acting Secretary Sonderling, a member of President Trump’s Task Force to Eliminate Fraud, led by VP JD Vance, detailed how years of failed oversight, OUTDATED TECHNOLOGY, WEAK IDENTITY VERIFICATION, and lax controls allowed unprecedented fraud to flourish.

California – More than $20 billion in debt to the federal government after years of fraud, improper payments, and mismanagement of its UI system. New York – Losing an estimated $2 million every day to fraud and improper payments, while posting one of the highest improper payment rates in the nation, exceeding 20%. Illinois – Improperly paying out more than $320 million in taxpayer funds at a rate of more than 14%, one of the highest improper payment rates in the nation. The Department of Labor is committed to rooting out fraud, enforcing UI eligibility requirements, and protecting American taxpayers. States that fail to safeguard these programs jeopardize benefits intended for hardworking Americans who demonstrate a legitimate need for temporary assistance.

Additional guidance and directives will be issued to the states in the coming weeks.

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TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: fraud; identityverification; outdatedtechnology; waste

[spintreebob]

Deloitte is IT vendor for CA IL & many states. Tata is IT vendor for NY GA FL CT KS ME MS MO WY. Deloitte & TATA are leading abusers of H1b. IL has a long history of IT vendor fraud in unemployment insurance that pre-dates TATA.

Outdated technology is not the problem. Intentionally designed fraudulent software and databases is the problem.

[spintreebob]

https://www.dol.gov/newsroom/releases/eta/eta20260617-0?lang=ja

Second major recovery from Maryland brings total returned funds to over $1B

The U.S. Department of Labor and its Office of Inspector General today announced the recovery of $512,138,478 in fraudulent CARES Act funds to the U.S. Department of the Treasury. This marks the second major recovery from the Maryland Division of Unemployment Insurance, bringing the total of funds recovered from the state to more than $1 billion.

[DevonD]

My experience with Florida makes me wonder how you can commit fraud in their UI. First the max benefit is around $3000.
Then their software to claim is terrible. I jumped through all their hoops for several months and then some glitch happened and the whole system reset and at no time did they pay me any money. I just gave up. I am sure if you know all the tricks it maybe easy to steal from the system, but I will bet a high percentage of valid filers get nothing for their effort.

[spintreebob]

But TATA makes out like a bandit.

[packagingguy]

I have the same problem in Tennessee.

Also I had a prior claim back in 2012 from someone else because I was employed at the time. Identity theft.

[faucetman]

“Acting U.S. Secretary of Labor Keith Sonderling issued formal letters to the governors of 53 U.S. states “

I thought it was 57 states (per Obama)? /S