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June 28, 2013

CT clampdowns on unemployment insurance fraud

The Connecticut Labor Department and Chief State's Attorney's Office are teaming up to reduce unemployment insurance fraud, officials said Friday.

The two state agencies have established an Unemployment Compensation Fraud Unit in the state's Division of Criminal Justice. Two inspectors and a prosecutor work with the labor department to identify cases of deliberate fraud and then obtain arrest warrants following a thorough investigation.

Since beginning its new responsibilities, the Unemployment Compensation Fraud Unit, which is being funded by federal dollars, has made 10 arrests and is currently working on about 40 additional cases.

Additionally, the labor department says is also working to prevent employers from committing fraud related to the misclassification of workers.

In these cases, employers deliberately treat workers as independent contractors rather than actual employees of the company, which means they avoid the expense of paying unemployment insurance and worker's compensation.

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