Louisiana claims top spot for unemployment fraud
POSTED: Thursday, September 15, 2011 - 5:32pm
UPDATED: Friday, October 14, 2011 - 7:26am
Louisiana (NBC33) — A federal report to curb government fraud, waste and abuse found Louisiana paid $497 million in bogus unemployment claims just in the past three years.
That makes Louisiana the worst in the nation for unemployment waste.
The report finds nearly half of all unemployment payments in the state are wrong. About 25% of payments went to people who've gone back to work, and another 15% of waste was traced back to employers who didn't fill out paper work correctly.
President Obama says he's holding Louisiana accountable and instituting federal monitoring of the payments.
The Louisiana Workforce Commission sees things differently. In a news release, the commission says our state has cut improper unemployment payments in half since 2010, making Louisiana the most improved in the country.
Executive Director Curt Eysink goes on to say both Hurricane Ike and Hurricane Gustav flooded the state with new claims.
The federal probe did find louisiana is on the right track to fix this wasteful spending. And the labor department is offering the state two-point-four million dollars to continue its unemployemnt insurance improvement program. That program is supposed to act as a safe-guard against government waste and fraud.