May 1, 1992

Who's at Fault for Unemployment Overpayments?

Department of Labor chart depicting those responsible for unemployment overpayments.

 

The Department of Labor's Quality Control report for 1990 shows that, for the most part, employers aren't to blame for unemployment-insurance overpayments. (See "The Hidden Cost of Firing," No. 05921462, May 1992.) Claimants and the state unemployment agencies are most often at fault, according to the judgment of the quality-control investigators. That suggests that companies would do well to monitor their agency and to advise terminated employees about their eligibility for unemployment benefits.

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Claimant 48.4%

Agency 33.4

Claimant and agency 9.8

Claimant and employer 6.2

Employer 2.2

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Source: Department of Labor Quality Control 1990 Annual Report, Washington, D.C.