State recovers $4.6 million in unemployment overpayments

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By seizing federal and state income tax refunds, the Connecticut Department of Labor has recovered nearly $4.63 million in unemployment benefits that were wrongly paid to more than 5,000 people.

The announcement from the department did not say over what period of time the overpayments were made. It only recently gained the ability to intercept federal tax refunds, not just state checks.

“Nationally, Connecticut has one of the best performance records when it comes to minimizing the number of unemployment insurance overpayments, but we are making it a top priority to implement new tools and technology to improve upon our successes,” State Labor Commissioner Sharon M. Palmer said.

Just through intercepting state checks, the department recovered more than $4 million last year – more than double what it had collected in 2011.

Officials estimate the state will recover as much as $8 million by the end of the year.

“Fraud is a very serious and costly offense that carries severe repercussions, including repayment, administrative penalties, interest charges and prosecution,” said Deputy Commissioner Dennis Murphy.

If someone suspects unemployment benefits fraud, they can report it here or call 1-800-894-3490.

The state does a cross match on wage data, and finds that about 500 people a week haven’t terminated their unemployment claims in the first week on the job. By preventing those payments, the state saves $5 million a year.


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5 thoughts on “State recovers $4.6 million in unemployment overpayments

  1. DaTroof

    This blog should be entitled “Digging Deeper.” With one party liberal rule in this state, we’re circling the drain and are well on our way to being another California or Illinois.

  2. Jan

    That’s great. Now cancel that $1M-plus loan that the state is going to borrow to loan money to private businesses.

  3. Taxpayer

    The state should require that all recipients of unemployment checks provide weekly written confirmation that they are still unemployed, and if it is later found to be untrue, there should be severe fines and penalties, including jail time.

  4. peter

    Not only are they vigilant about contract start dates but they fine you if you make a mistake. My fine was 0.5 weeks of benefits, the withholding of 1 week of benefits (when I tried to refile), and 1 more weeks worth of benefits because they thought the I was trying to fraud the state out of $240 dollars. Trying to get someone from the overpayment control unit to respond to me was very difficult.

    I made a mistake. I wasn’t trying to fraud the state out of money. I’m sorry, but bouncing from contract to contract wasn’t the easiest thing to do. It was a very stressful time. Thanks for helping me get on my feet CT.

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