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February 5, 2007
Use of the National Directory of New Hires has helped the Missouri Division of Employment Security account for $3.7 million in unemployment insurance overpayments to non-eligible recipients.
The division, part of the Missouri Department of Labor and Industrial Relations, recently completed its first year of using the directory to detect overpayments. The directory helps the division to more quickly identify individuals who are receiving unemployment insurance from Missouri even after they have returned to work with a new employer virtually anywhere in the United States.
Unemployment insurance benefits are paid to claimants from a fund that is supported by the unemployment taxes paid by Missouri businesses.
“The overwhelming majority of UI recipients get benefits in a proper and lawful manner,” said Rod Chapel, director of the Missouri Department of Labor and Industrial Relations, in a news release. “But, when individuals attempt to defraud the system, we will use every means at our disposal to detect the overpayments and apply the penalties specified in Missouri’s Employment Security law.”
The average overpayment established in 2006 using all methods of detection was $801.14, while the average overpayment from NDNH detection was $679.82.
In the 12 months ending in December 2006, the division established 21,829 overpayments totaling $17,487,998, and the directory accounted for 5,459 overpayments worth a total of $3,711,132.
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