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Audit cites flaws in interstate jobless payments

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Posted: Jun 28, 2010 5:47 PM by Rachel Frost
Updated: Jun 28, 2010 6:02 PM
Source: WBRZ

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Topics: audit, Louisiana Workforce Commission, unemployment, insurance, benefits

A legislative audit shows the state labor department paid more than $21 million in unemployment benefits but never got the money back from Louisiana employers.

The audit was conducted last year.

The money went to people who worked in Louisiana then moved to another state and filed for unemployment benefits, according to the audit.

Louisiana reimburses those states under an interstate agreement, but the audit says the Louisiana Workforce Commission didn't have procedures in place to collect the money from the in-state employers, as required by law.

"The state of Louisiana is supposed to go to the employer and get certain information to determine if they were properly eligible or not," said Daryl Purpera, Louisiana Legislative Auditor.

More than half of the claims reviewed in the audit were either fraudulent, or there was an error in the records, according to Purpera.

The audit includes a response from the Louisiana Workforce Commission, saying it completed work needed to begin charging employers for the required payments.

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