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The Arkansas Division of Workforce Services has issued determinations denying employers Relief of Benefit Charges requested as a result of fraudulent unemployment claims filings unless the claimant has filed a police report and provided a copy of that report to the agency. This ruling effectively makes employers responsible for fraudulent unemployment claims.

Fraudulent unemployment claims filings have been rampant throughout the United States during the COVID-19 Pandemic with 100s of millions of dollars paid on claims not filed by workers but by fraudsters outside the United States.  The fraud issue was of such concern that state unemployment agencies were provided funds by the Federal Government in the various stimulus packages to battle the continuing fraud.

CCC does not agree that this burden should be placed on employers and is pursuing all options. While we pursue these options, we must advise that employers assist their employees with filing police reports. As always, CCC continues to recommend that employers advise their employees who are involved with a fraudulent unemployment claim to report the fraudulent claim to the state unemployment agency and in Arkansas provide the police report at that time.

As we track legislative updates and policy changes regarding unemployment, CCC will be on the lookout for other states taking this stance. At this time, Arkansas is the only state that places the burden for the fraudulent unemployment claims on the employer. CCC will provide updates as necessary.

CCC has provided an extensive Fraud Guide to assist employers and their employees when a fraudulent unemployment claim has been filed. Please contact your CCC Account Executive for additional support regarding fraudulent claims or any other unemployment-related issue.


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