 |
|
||||||
FOR MORE INFORMATION CONTACT: Cynthia Quetsch (573)
751-7500
FOR IMMEDIATE RELEASE: January 30, 2007
National Directory of New Hires Proving a Useful Tool in Fraud Detection
The Missouri Division of Employment Security recently completed the first year of using the National Directory of New Hires (NDNH) to detect unemployment insurance overpayments. The NDNH allows the Division to detect if a person getting Missouri unemployment insurance (UI) benefits has returned to work with a new employer virtually anywhere in the United States.
In the twelve months ending in December 2006, the Division established 21,829 overpayments totaling $17,487,998. The NDNH accounted for 5,459 overpayments with a total of $3,711,132.
“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. “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.”
One of the most beneficial results of the NDNH is that it allows the Division earlier detection of those individuals who have returned to work but are unlawfully collecting unemployment insurance from Missouri employers. In the first year of usage, the average overpayment detected through the NDNH is less than the average overpayment—indicating earlier detection and cessation of wrongful benefit payments. The average overpayment established in 2006 using all methods of detection was $801.14 while the average overpayment from NDNH detection was $679.82.
UI benefits are paid to claimants from a fund that is supported by the unemployment taxes paid by businesses in Missouri.
###
Information and Planning · 421 East Dunklin
· P.O. Box 504 · Jefferson City, MO
65102-0504
573-751-7500 · 573-751-6552 (Fax)
Relay Missouri: 1-800-735-2966 (TDD) 1-800-735-2466 (Voice)