Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Ui Penalty Employer Fraud topic
No spam. Unsubscribe anytime.
House–senate differ on UI penalty levels; committee set employer-penalty increase aside for more review
Summary
A senate provision would raise the employer penalty for certain unemployment insurance offenses from the greater of $500 or 50% to 100% of specified amounts; the department said it could administer the change but members asked for more discussion about parity with employee penalties and proportionality, and the item was tabled.
The committee discussed a senate proposal to modify civil penalties for employers who provide false statements or knowingly fail to disclose material facts in the unemployment insurance system. Representative Greenman (sponsoring the house portion of the change) said the intent was to strengthen penalties to deter fraud and misclassification; she said the change reflects recommendations from the misclassification task force and legislative auditor reports.
DEED told the committee it was neutral and could administer the change. Representative Richard Baker and others questioned whether raising the employer penalty from 50% (or $500, whichever is greater) to 100% was appropriate and whether employees who acted fraudulently face comparable sanctions. Baker said he did not want to disproportionately increase penalties on businesses without parallel enforcement on claimants who commit fraud. Committee members agreed to set the provision aside for further conversation; no vote occurred during the session.
Chair Champion said the item would be placed in the committee's pile for later negotiation; staff and labor staffmen were available for follow-up.
