Staff Analysis of the Legislation
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Under current law, the Department of Economic Security (DES) is required to assess a penalty of 15% of the amount paid to a person who received unemployment benefits through fraud. The recipient is ineligible to receive further benefits until the total amount is repaid, including the penalties and interest. Interest is 10% of any benefit overpayment debts and DES cannot waive more than 25% of fraudulent overpayments. This bill establishes that if an individual provides services to multiple educational employers, then unemployment insurance benefits are not payable if there is a contract or reasonable assurance of work between or within terms of service. It also establishes that any interest on a fraud overpayment that has been waived will be treated as though it had been recovered and that fraud overpayments and penalties cannot be waived unless good cause is shown. DES cannot collect an overpayment amount or interest amount that has been waived. |
