Protesting unemployment insurance claims is an important consideration for employers across the country. Not every claim ends up under this spotlight, but the ability to refute any potentially incorrect payment is a vital way to keep costs down and prevent fraud.

In New Jersey, improper claims have recently been targeted by the state’s Attorney General’s office, in part due to allegations that local county jail inmates were collecting payments while behind bars. According to New Jersey-based media outlet The Star-Ledger, five former inmates were charged on June 10 for stealing roughly $100,000 in unemployment insurance benefits. Anyone currently in prison is ineligible to collect payments.

While only five were initially charged with the crime, the state expects more cases to appear as the ensuing criminal investigation takes place, The Star-Ledger reported.

“We’re continuing to work with the Department of Labor to investigate this type of fraud, and we expect to charge additional defendants,” Elie Honig, director of New Jersey’s Division of Criminal Justice, told the media outlet.

These recent developments have come to light following a 2013 audit conducted by the Office of the State Comptroller, which found that more than $10 million of fraudulent unemployment insurance benefits have been issued to local inmates over a multi-year time frame, the news source noted. Around 50 people are being looked at by the Attorney General’s office.

Fraudulent payments impact local residents
Access to unemployment insurance benefits is an important part of the U.S. economy, and without a secure fund available for out-of-work residents, it can be challenging for people to survive the job search. In addition, improper payments can directly impact the costs for local businesses, who are on the hook for taxes and other expenses to cover these benefits.

According to a separate report from The Star-Ledger, the recently charged former inmates allegedly stole between $12,000 and $28,000 from the state.

“These defendants stole from a program that serves as a financial safety net for New Jersey workers,” said acting attorney general John Hoffman, the media outlet reported. “Unemployment insurance benefits are intended to help workers who lose their jobs through no fault of their own, not to provide a free paycheck to criminals while they sit in jail after breaking our laws.”

Catching these illegal payments is an important step to keeping costs down and ensuring that benefits are left for those who truly need them.

Not all unemployment insurance claims are worth protesting. However, those that are require some crucial steps beforehand. At Corporate Cost Control, we have a team committed to the process, with expert knowledge in state unemployment agency adjudication and hearings. Working closely with you, we can achieve a positive resolution to all claims disputes.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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