Jon T. Haugen for Senate, 18th District (D)
 |  |  |  |  |
Columbian
In our view: Giant Rip-Off
Wednesday, December 26, 2007
Thousands cheat unemployment system
Cheaters never win. Ahhh. Don 't we wish! The reality is, they often win.
Do an online search for "cheat on tests" and you find a wealth of
information a bout cheating on everything from college exams to
polygraphs.
In Washington state, cheating is clearly in vogue. Data recently released
by the state Employment Security Department shows that in the first nine
months of 2007, the department caught 17,930 people who fraudulently
collected $11.9 million and tried to collect another $6.5 million in
unemployment benefits.
What a giant rip-off! Most people scamming the system do so by failing to
report all sources of their income. Others continue to collect benefits even
after regaining employment.
The department is trying hard to catch people stealing unemployment
benefits. It crosschecks records with the Social Security Administration,
the state Department of Labor and national lists of new hires. (Who knew
about these lists? Maybe public knowledge that such lists exist will deter
some would-be cheaters.) The department doesn't go soft on cheaters,
either. It makes scofflaws pay back the money, plus interest, and
suspends liars from collecting benefits for a period of time. A monetary
fine will be added to the list of penalties starting in 2008. Excellent.
There are things citizens and businesses can do. People can report
someone anonymously or on the record at: https://fortress.wa.
gov/esd/uia/uiinquiry/reptmisrep.htm. Employers should file timely and
accurate tax-and-wage reports and respond to state inquiries about
former employees applying for benefits.
We get how people justify this cheating: The system requires workers to
pay into an account that many never need. People can feel entitled to
money they've put in over the years. But they need to remember a few
things. Employers also put money into the system on employees' behalf.
Robbing the system impacts employers and other taxpayers. Further, you
never know when you'll lose your job and find yourself in true need. If
wage earners don't like this government safety net, instead of cheating,
they can lobby lawmakers to do away with it.
Letter to the Editor:
The Columbian, 27 December 2007, in an editorial titled “Giant Rip-Off:
Thousands cheat unemployment system” describes how the state spent
$11.9 million on fraudulent claims. With ‘poster child’ Sen. Joe Zarelli
(Republican, 18th Legislative District) as a fraud cheat the numbers are
not surprising. If a State Senator can steal money with no punishment
why can’t everyone? Sen. Zarelli stole over $12,000 from the
Employment Security Department. Had Zarelli used a gun instead of a
pen to steal this money he would today be in jail. No substantial
punishment exists for stealing state unemployment funds. No jail time, no
fine. Don’t look for ‘role model’ Joe Zarelli to introduce any legislation to
increase the penalty for stealing from the state.
Current law:
If a person falsely files for Washington State Unemployment benefits what
are the penalties?
Claimant fraud is addressed in RCW 50.20.070. The individual is denied
for the week in which fraud was committed and for up to two years from
the mailing of the fraud denial. The state legislature is considering
legislation to change the fraud statute. Engrossed Senate Substitute Bill
(ESSB) 5373, Section 7, would change the disqualification period and
add monetary penalties.
· First time fraud - 26 week denial
· Second time - 52 week denial and a penalty of 25% of the
overpayment established.
· Third time - 104 week denial and a penalty of 50% of the
overpayment established.
Source:
Ted Wade
Operations Manager
Unemployment Insurance Policy Unit
Olympia, WA 98507
(360) 902 9732