LINCOLN- The Nebraska Crime Commission and Departments of Corrections and Labor today announced that a new interagency effort to crack down on fraudulent unemployment claims has resulted in the discovery of more than $156,000 in benefits claimed by over 180 inmates from 2013 to 2015.  One inmate alone collected $4,300 in unemployment benefits while incarcerated.  Nebraska law provides that inmates are not eligible for unemployment benefits, but until now, the Department of Labor has not known the time period when an individual is incarcerated. 

Through the joint efforts of the three agencies and technology, the Department of Labor is now able to crossmatch information received through the Nebraska Crime Commission’s NCJIS (Nebraska Criminal Justice Information System) data portal, as well as data files received from the Department of Corrections, against weekly claims to determine if inmates are claiming unemployment benefits while incarcerated in city and county jails or state correctional facilities.

“With the help of the Crime Commission and the Department of Corrections, we have been able to open a new avenue for combatting unemployment fraud,” said Commissioner of Labor John H. Albin.  “The next step will be to begin the task of recovering these funds.”

The Department of Labor will use a variety of methods to recover the funds, including the offset of state and federal income tax refunds and wage levies.  Claimants who fraudulently collect unemployment benefits are responsible for paying back the benefits received plus a 15 percent penalty.  Recovered funds are returned to the Unemployment Insurance Trust Fund for the payment of benefits to eligible claimants.  Claimants fraudulently obtaining unemployment benefits are also subject to criminal prosecution.

According to the most recent data from the United States Department of Labor from 2014, Nebraska has an unemployment insurance fraud rate of about 1 percent, as compared to the national average of 2.72 percent. In addition to the partnership with the Crime Commission and Department of Corrections, the Department of Labor is increasing the rate of overpayment detection through the use of data analytics and other IT advancements and staff training.

“The collaborative effort of the Crime Commission, Department of Corrections and Department of Labor is one example of how state agencies can successfully partner together to prevent, detect and reduce fraud,” said Crime Commission Executive Director Darrell Fisher.

“This cooperative effort with the Department of Labor and Crime Commission is the first of several joint projects under discussion to enhance our agencies’ value to the citizens of Nebraska,” said Director of Corrections Scott Frakes.

If you suspect unemployment insurance fraud, call the Department of Labor’s Benefit Payment Control Unit at

402-471-2865.