Record Overpayments Prompt Penalties for Employers and Their Unemployment Vendors
Billions in Unemployment Insurance overpayments recorded nationwide, have prompted the Federal Government to mandate state agencies to levy significant penalties on employers and their agents. In an effort to combat egregious claim processing errors and omissions (resulting in overpayments) effective October 21, 2013, employers and TPA’s must ensure claim response protocols meet new standards associated with timeliness and accuracy. A single failure to do so, or a pattern of failure, will incur loss of account credits or repayment funds currently provided. States have also been granted the ability to assess monetary and criminal penalties against employers and agents alike.