Unemployment Insurance Fraud
The Nebraska Department of Labor (NDOL) is committed to assuring compliance with all requirements for unemployment insurance by fostering a culture of integrity. Whether you are an employer, worker, or citizen of Nebraska, everyone has a role in protecting the integrity of the Unemployment Insurance program.
What is UI Fraud?
Anyone who receives unemployment benefits or pays a lower unemployment tax rate based on false information that they intentionally provide to the NDOL is committing fraud. Unemployment insurance fraud is a crime and is punishable by law.
Insurance Fraud: 30 Sec
Insurance Fraud: 1 Min
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
- NEW - 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
To anonymously report suspected unemployment insurance fraud, click here.
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.
An employer who deliberately violates or attempts to violate the Nebraska Employment Security Law regarding the transfer of employer experience accounts may be required to:
- Pay the highest combined tax rate for the year of the violation and for the next three years
- Pay a penalty of 2% of taxable wages for the year of the violation and for the next three years
- Be subject to a civil penalty of up to $5,000
- Be charged with a Class IV felony
Nebraska Employer Prevention of
Improper Unemployment Payments
To anonymously report suspected employer unemployment insurance fraud, click here.