Industry News
Bush FY 2007 budget request revives UI integrity proposal
March 14 , 2006
The Bush Administration's FY 2007 budget request, announced February 6, 2006, includes a revival of last year's Department of Labor (DOL) integrity proposal. However, this year's version eliminates a proposal to allow states to receive federal administrative loans to upgrade their technology and adds a requirement for employers to include a "start work" date on new hire reports. This year's initiative also proposes to:
- Prohibit state laws that non-charge benefits paid due to an employer's late or incomplete submission of separation information.
- Allow states to retain part of recovered overpayments and underpaid taxes for use in fighting fraud.
- Mandate a 15 percent state penalty for fraud and allow those funds to be used to conduct payment "integrity" activities.
- Facilitate return to work by allowing state waivers of federal requirements (for demonstration projects).
- Provide states an additional $10 million for UI identity theft and $30 million for expanded re-employment and eligibility review initiatives.