Unemployment Claim Fraud: How NOT to be a victim


Have you ever received an unemployment claim for an employee who is still working full-time at your facility?  Or perhaps you had an employee quit and they file an unemployment claim stating they were laid-off?  These are examples of unemployment claim fraud. 

As a business you must be proactive and fight all claims, fraudulent or not, so you do not have a subsequent rise to your unemployment insurance rate.  You can do this by immediately responding to any claims received via mail .  Most unemployment agencies allow a certain timeframe to respond (generally 10 days from the date of the unemployment notice’s mail date). If you do not respond, the claim will go through without the pertinent information you could of provided to change the outcome of the determination the unemployment agency would make.

Other ways to reduce your unemployment insurance rate:

  • Reducing your turnover through better hiring practices
  • Documenting corrective action via written warnings during employment
  • Responding to all unemployment agency correspondence within the required timeframe
  • For clients on HR services, immediately forwarding unemployment claims to our HR department for proper handling and verbiage

If you think someone is committing fraud against one of EDD's programs, notify the EDD immediately on Ask EDD: Reporting Fraud.

By LeiLani E. Quiray, SPHR/HR Director

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