WASHINGTON – The U.S. Departments of Labor and Treasury have unveiled a new partnership aimed at bolstering fraud prevention measures in state unemployment insurance agencies. The initiative, announced on May 2, 2024, marks a significant step towards enhancing controls and tools to combat unemployment insurance fraud.
As part of the collaboration, state unemployment agencies will now have access to the Do Not Pay Working System data sources and services through the UI Integrity Data Hub. The hub, managed by the National Association of State Workforce Agencies, serves as a crucial data-matching system utilized by state agencies to strengthen fraud prevention and reduce improper payments.
Assistant Secretary for Employment and Training José Javier Rodríguez emphasized the importance of providing state agencies with robust controls, stating, “To mitigate fraud risks and reduce improper payments, state unemployment agencies need access to the best controls.” This partnership aims to equip states with critical data sources to enhance the accuracy of unemployment payments using existing infrastructure like the UI Integrity Data Hub effectively.
Treasury’s Fiscal Assistant Secretary David Lebryk underscored the commitment to strengthening partnerships with federally funded state-administered programs to ensure the integrity of payments. Lebryk stated, “Getting money out the door quickly to support those in need doesn’t have to mean weakening controls and safeguards... states will be better equipped to prevent and detect fraud and improper payments in their UI programs.”
The collaboration extends to all 53 states and territories participating in the UI Integrity Data Hub, overseen by the Department of Labor. Through the allocation of American Rescue Plan funding, the integration of Do Not Pay data sources aims to further enhance fraud prevention efforts within the unemployment insurance system.
This strategic partnership between the Departments of Labor and Treasury signals a proactive approach to combatting fraud and improper payments in state unemployment insurance programs, leveraging data-sharing and enhanced controls to safeguard the integrity of the system.
