Labor Dept Targets Minnesota Unemployment Fraud Review

The U.S. Department of Labor today announced it will conduct a targeted review of Minnesota’s Unemployment Insurance Program using an onsite specialized UI strike team following recent discoveries of widespread fraud in the state’s benefits programs.

In a letter sent to the Minnesota Department of Employment and Economic Development, the department noted concerns that recent reports of fraud, waste, and abuse might compromise the integrity of their UI program. The discoveries span several benefits programs, including Minnesota’s Federal Child Nutrition Program, Early Intensive Developmental and Behavioral Intervention Autism Program, and Housing Stability Services Program.

“I am appalled at what we are hearing about potential fraud coming from numerous benefits programs in Minnesota. If there has been any related abuse of our UI systems, it will not be tolerated, and I trust our specialized strike team to get to the bottom of this and report their findings directly to me,” said Labor Secretary Lori Chavez-DeRemer. “Our mission to protect American workers remains unchanged, and I will not allow malicious actors to destroy the integrity of this trusted program.”

The department’s Employment and Training Administration’s Chicago regional office today informed them of an onsite review of its Benefit Payment Control operations and integrity functions, with a specific focus on ensuring fraud, waste, and abuse identified in Minnesota’s state programs is not present in the UI or the pandemic UI programs.

The letter also requested the state provide critical documents to the department’s UI strike team, which is made up of staff from ETA’s national and regional offices.

Public Release.