Section 1 Short title
This Act may be cited as the “Eliminate Fraudulent Unemployment Insurance Benefits Act”.
Eliminate Fraudulent Unemployment Insurance Benefits Act
A BILL
To amend title III of the Social Security Act to improve the accuracy of payment of unemployment compensation benefits, and for other purposes.
Sec. 2 Timing of payments to certain continued claimants
in subsection (a)(1), by striking “Such methods of administration” and inserting “Subject to subsection (n), such methods of administration”; and
by adding at the end the following new subsection:
“(n) Timing of payments to certain continued claimants
“(1) In general—For purposes of determining when unemployment compensation is due under subsection (a)(1), in the case of a continued claimant who has been determined ineligible by the State agency and such determination is in the appeal process, the State agency shall withhold unemployment compensation benefits otherwise payable to such individual until the date on which—
“(A) the individual's appeal is no longer pending before the State; and
“(B) the State agency determines that such individual is eligible for such payment.
“(2) Payment upon determination—For purposes of paragraph (1)(B), if a State agency determines that a claimant is eligible for unemployment compensation benefits, the State agency shall pay to the claimant within 5 business days the benefits withheld from the claimant in accordance with paragraph (1).”
Effective date— The requirements of subsection (a) shall apply to weeks of unemployment beginning on or after the earlier of—
the date the State changes its statutes, regulations, or policies in order to comply with such requirements; or
the date that is 2 years after the date of enactment of this Act.
Sec. 3 Guidance on denying or revoking eligibility for unemployment compensation
In general— Not later than 270 days after the date of enactment of this Act, the Secretary of Labor (in this section referred to as the “Secretary”), in coordination with the Inspector General of the Department of Labor (in this section referred to as the “Inspector General”), shall issue guidance for States regarding best practices for denying eligibility for unemployment compensation for initial claimants and declaring continued claimants ineligible.
Considerations— In issuing the guidance under subsection (a), the Secretary and the Inspector General shall consider the following:
Accepted rationales for ineligibility determinations, including—
fraudulent activity, such as any dishonest response, use of a synthetic identity, or certification of inaccurate or deceptive personally-identifiable information;
nonresponse; or
any other rationale determined appropriate by the Secretary and the Inspector General.
Specific examples of each accepted rationale identified under paragraph (1).
The level of risk associated with each accepted rationale identified under paragraph (1).
Any other considerations determined appropriate by the Secretary and the Inspector General.
Updates— The Secretary, in coordination with the Inspector General, shall update the guidance issued under subsection (a) not less than once every 3 years.
Definitions— For purposes of this section:
Dishonest response— The term dishonest response means, with respect to a response from a claimant to file an initial claim or a claim for continued eligibility for unemployment compensation, a response that—
is untrue; and
may include false personally-identifiable information, reporting of earnings, or employment history.
Personally-identifiable information— The term personally-identifiable information means information that is linked or reasonably linkable to an individual, such as a physical address, place of residency, phone number, driver’s license number, social security number, employee identification number, identification number provided by the State, or any other information determined appropriate by the Secretary of Labor.
Synthetic identity— The term synthetic identity means, with respect to a claim for unemployment compensation, an identity that is used by a claimant to fraudulently apply for such compensation that—
does not reflect a real individual; and
may use real or seemingly real personally-identifiable information.