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Unemployment benefits: 88 percent accuracy in 2008 - May 22, 2009

09-039

Media contact: Mark Varadian, communications manager, 360-902-9454

Audio: /newsandinformation/releases/audio/index.php

OLYMPIA – The state’s Employment Security Department today announced that a large majority of unemployment benefits were paid accurately in 2008, even as the demand for benefits increased.

An internal audit sampled 480 out of 319,440 unemployment claims that were paid in 2008 and found that 88.6 percent were paid accurately. The audit found that excess benefits were paid in 11.4 percent of the reviewed claims.

Most overpayments are due to inaccurate information received from claimants. Common issues involved claimants who were not meeting the weekly work-search requirements, or were not readily available to work or did not accurately report when they returned to work. By law, claimants must repay any excess benefits they received and may be barred from receiving additional benefits for a period of time.

“It’s a small sample, but it’s enough to show us where we’re doing well and where we might be able to achieve additional improvements,” said Employment Security Commissioner Karen Lee. “It is important to us to pay benefits as accurately as possible and to prevent fraud.”

Over the last few years, Employment Security has stepped up its efforts to detect and prevent people from receiving benefits they’re not entitled to. The department cross-matches records with other state and federal agencies, monitors address and telephone information, and investigates tips from the public.

Approximately 170,000 people are currently receiving unemployment benefits in Washington.

Federal regulations require all states to randomly audit claims to determine the accuracy of their benefit payments, although there is no federal standard for benefit accuracy. The review is part of a national effort to measure the accuracy rates of unemployment-benefit payments for every state. The U.S. Department of Labor will release a full report on all states in August.

The Employment Security Department’s toll-free number for reporting people who may be cheating on their unemployment benefits or taxes is 866-266-1987. 


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Broadcast version

Almost eighty-nine percent of unemployment benefits in Washington were paid correctly in 2008, even as the demand for benefits grew to record levels.

The state Employment Security Department sampled almost five-hundred claims from 2008 – out of more than 319-thousand claims that were paid last year.

The most common cause of payment errors stemmed from workers who were not properly looking for work while they received benefits, or they were not readily available for work as required.  Some kept claiming unemployment benefits even after they got a new job.

When Employment Security discovers that someone received unemployment benefits improperly, the person is required to pay them back and may be barred from receiving additional benefits for a period of time.

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