Unemployment Insurance (UI) Improper Payments


In the past few years the Department has increased efforts to reduce improper payments by addressing the most common causes. Individuals continuing to make claims even after returning to work make up nearly 35% of all improper payments. Failure to meet state work search requirements makes up approximately 24%. And untimely or inaccurate separation information from employers or third party administrators totals approximately 19%.

In many cases these are problems that can be addressed by providing and sharing information better. To address inaccurate or untimely information on separations, DOL helped states implement the State Information Data Exchange System (SIDES), which allows electronic transmission of UI information requests from state agencies to multi-state employers and third party administrators. To support states' efforts in implementing new strategies aimed at addressing the state-specific root causes of overpayments, the Department provided supplemental funding opportunities with incentives to accelerate state actions to reduce improper payments. In addition, DOL is helping to facilitate state implementation of the Treasury Offset Program (TOP) to recover certain unemployment compensation debts due to fraud and certain non-fraud overpayments through Federal income tax refund offsets.


green: complete


yellow: on track

On Track

red: not on track

Not on Track

1BPA for Improper Payments is only a core strategy for states with annual rates above 10% and receiving 2013 SBR funds.

2SIDES Expansion is only a core strategy for states that are receiving 2013 SBR funds.

3SIDES Messaging is only a core strategy for states that previously received SIDES Implementation funding and are receiving 2013 SBR funds.

4State-Specific Prevention strategies is only a core strategy for states that are receiving 2013 SBR funds.