The Minnesota UI Program uses various methods to detect benefit overpayments, including a computer cross match to compare quarterly wages reported by employers with unemployment benefit payments made to applicants. Unemployment Insurance Specialists verify return-to-work dates and wages reported by applicants, investigate employers’ protests to benefit charges, and follow up on tips from the public. If payment of any court fees is required in an attempt to enforce collection of overpaid unemployment benefits, penalties, or interest, these fees may be added to the total amount due.

Collection efforts used to recover debt caused by fraud include:

• Liens filed on property
• Seizing state income and property tax refunds
• Court ordered restitution resulting from criminal prosecutions
• Garnishment of wages
• Intervention in workers’ compensation cases
• Referral to the Minnesota Department of Revenue - Collections Division

Fraud penalties include:

• A penalty equal to 40 percent of the benefit amount fraudulently obtained.
• Interest rate of 1.5 percent per month or 18 percent annually.
• Being ineligible for unemployment benefits until the fraud overpayment, penalties and interest are paid in full.

In addition to penalties, the UI Program may take the following actions:

• Assess an administrative penalty making applicants ineligible for unemployment benefits for 13 to 104 weeks.
• Pursue criminal prosecution under federal and state law.

Report fraud or benefit violations using the online Fraud Report.

Refer to Minnesota Law, §268.18 Subd.2 and §268.182 subd.2, for more details.