To report suspected unemployment fraud, click HERE.
Individual Fraud
Examples of claimant/worker fraud include:
- Providing false information to obtain unemployment benefits
- Returning to full-time work but continuing to receive unemployment benefits
- Working part-time but not reporting gross earnings to the State, thereby collecting more benefits than allowed
Consequences of claimant unemployment insurance fraud may include:
- Repaying benefits received
- 15% penalty based on the amount of the overpayment
- Losing eligibility to receive benefits now and in the future
- Forfeiting state and federal income tax refunds
- Criminal charges, jail time, felony or misdemeanor conviction
Report Individual Fraud: https://dol.nebraska.gov/Fraud/ReportIndividualFraud
Resources for reporting fraud:
Internal Revenue Service: Taxpayer Guide to Identity Theft
Federal Trade Commission: Identity Theft Information
US Department of Justice: Disaster Complaint Form
Employer Fraud
Examples of employer fraud include:
- Paying “off the books” or “under the table” wages
- Not reporting wages to the Nebraska Department of Labor
- Misclassifying workers who are employees as independent contractors
- Committing a Class III misdemeanor by making a false statement or representation to:
-
- Prevent or reduce the payment of benefits to any individual eligible for these benefits
- Obtain benefits for an individual not eligible for benefits, or
- Avoid or reduce any contribution or other payment required from an employer under sections 48-648 and 48-649 of the Nebraska Employment Security Law.
Examples of possible employer unemployment insurance fraud penalties include:
- Paying the highest combined tax rate for the year of the violation and for the next three years
- Paying a penalty of 2% of taxable wages for the year of the violation and for the next three years
- Civil penalty of up to $5,000
- Felony charges