Friday, July 25, 2014


In yesterday's post, I noted that the Department of Labor would consider, at the very least, the employee to have committed fraud because the employee "[c]ollaborated "with an employer to illegally claim unemployment insurance benefits."

But would the Department of Labor also consider the employer to  have committed fraud if the employer collaborated with an employee to illegally claim unemployment insurance benefits? This is not clear. From the Department of Labor website:

"Employer UI Fraud

24-Hour Toll-Free Hotline
(1-866) 435-1499

The State Labor Department has a 24-hour toll-free hotline for those who wish to report employer UI fraud. Examples of employer UI fraud are:
  • Paying “off the books” or “under the table” wages
  • Intentional misclassification of workers as independent contractors
  • State Unemployment Tax Act (SUTA) dumping – shifting workers between employer payrolls to improperly use a lower contribution rate
Misclassifying workers and paying workers off the books can have a severe impact on workers and employers in industries where the practice prevails.
For employers, it creates an unfair economic advantage and imposes higher costs on responsible employers. This makes them less competitive and more likely to be under-bid by businesses that intentionally misclassify workers.
For workers, it affects working conditions by encouraging unscrupulous employers to ignore labor protections, such as wage and hour requirements, and safety and health regulations.
SUTA dumping occurs when employers and/or their representatives transfer employees between multiple payrolls strictly to obtain lower UI contribution rates.
We need your help to keep the UI system fair and equitable for everyone. If you are aware of an employer committing fraud, you may report it anonymously by these methods:
  • Call 1-866-435-1499
  • Contact our UI Fraud Unit at (518) 485-2144 between 8 am and 4 pm
  • Fax information to (518) 457-0024 or (518) 485-6172
  • Report by mail to:
    New York State Department of Labor
    Liability and Determination, Fraud Unit
    Building 12, Room 322
    W.A. Harriman State Office Campus
    Albany, NY 12240 "

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