New York made $11B in improper unemployment payments during the Covid-19 pandemic, an audit found, partly due to the state Dept. of Labor's 'antiquated UI system,' which was unable to handle the huge surge in claims.
Pedestrians pass an office location for the New York State Department of Labor Thursday, June 11, 2020, in Queens. A state report Tuesday found $11 billion in improper unemployment payment during the pandemic. | Frank Franklin II/AP PhotoALBANY, N.Y. — New York’s outdated unemployment insurance system likely contributed to at least $11 billion in improper payments during the Covid-19 pandemic, an audit from state Comptroller Thomas DiNapoli found.
DOL said in a statement that it’s “already implementing changes to improve the system and address the audit’s findings.” According to DiNapoli’s office, the exact scale of payments lost to fraud is unknown since “DOL refused to provide auditors with the data that would have enabled [them] to calculate the precise amount.”
The report also noted that DOL “was unable to provide auditors with information to support their management and response to fraudulent claims.” It could not account for the number of claims paid to fraudulent claimants before being detected, the length of time from when claims were filed to when they were identified as fraudulent and how claims were identified as fraudulent, DiNapoli’s office said.
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