How does unemployment discover you have become employed?

If someone is legally approved for unemployment, then becomes employed and does not inform unemployment and continues receiving benefits. How does unemployment discover that this is happening?


Hi,

It's called new hire reporting. It's just one method of many that is used to detect unemployment fraud.

All employers are suppose to report "new hires". Just go to a search engine and type in "new hire reporting". You'll see what's going on.

Not only that .. the federal government has a new hire reporting system also to overcome the possibility of fraud when someone moves to another state and goes to work, but is still collecting from another.

Additionally, IRS records can be cross referenced .. not to mention that a state may use private company databases to investigate fraud.

I was very shocked the first time I received a fraud hearing for a two year old claim and included in the state's documentation was a report from an unemployment vendor. You see .. unemployment claims is a great reason to have access to an employers payroll records for employment and income verification .. which is the "cash cow" for the largest unemployment vendor .. which is a division of one of the three major CRA's.