Stop Unemployment Fraud Act

Key Points

• The bill requires unemployment applicants to verify their identity with at least one government-issued ID and a supporting document like a utility bill or lease. States must certify they have these procedures in place, and the Secretary of Labor must issue regulations within 12 months.
• States must cross-check unemployment claimants against databases of new hires, incarcerated individuals, and deceased individuals to catch fraudulent claims. They must use the National Directory of New Hires and Social Security data to identify people who should not be receiving benefits.
• The bill ends the "pay and chase" model where benefits are paid first and checked later. No payment can go out until identity is verified and eligibility is confirmed, and self-attestation alone is no longer enough to prove eligibility.
• People receiving unemployment must keep a detailed weekly log of their job search, including employers contacted, method of contact, and date. States are required to verify these records.
• States can keep up to 5% of recovered fraud overpayments and certain collected contributions to fund fraud prevention, technology upgrades, and program administration. The Secretary of Labor can withhold 5% of a non-compliant state's funds and require a corrective action plan.

Votes

No votes have been recorded for this legislation yet.