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Senate raises felony threshold for unemployment‑compensation fraud from $500 to $2,000
Summary
Lawmakers voted to raise the threshold at which unemployment‑compensation overpayments are treated as felonies from $500 to $2,000, shifting lower overpayments into misdemeanors; supporters said the old threshold is outdated and harms low‑income workers, while opponents warned it softens penalties for theft.
The Connecticut Senate voted to raise the threshold that triggers a felony charge for unemployment‑compensation fraud from $500 (a level set in 1978) to $2,000.
Senator Kushner, sponsor of the bill, said the old threshold produces felony records for relatively small overpayments and disproportionately harms low‑wage workers who may be caught between a new paycheck and unpaid bills. He emphasized that the bill does not remove financial repayment obligations: individuals found to have committed fraud must still repay exact amounts plus statutory penalties and interest; the change affects the criminal classification of the offense.
Opponents, including Senator Rob Sampson, argued the change reduces deterrence for fraud and asked who ultimately bears the cost. Advocates for the bill said the Department of Labor’s fraud unit prosecutes organized fraud but that ordinary workers can be caught up in the old threshold. The measure passed by recorded vote (yeas 26, nays 9; one absent).
