U.S. Department of Labor to Investigate Minnesota’s Unemployment Insurance Program Following Fraud Allegations

(KNSI) – The U.S. Department of Labor announced that it will conduct a targeted review of Minnesota’s Unemployment Insurance (UI) Program following recent findings of significant fraud in several of the state’s benefits programs.

In a letter to the Minnesota Department of Employment and Economic Development, the department cited concerns that reported instances of fraud, waste, and abuse could affect the integrity of the state’s UI program. The identified issues involve multiple programs, including the Federal Child Nutrition Program, the Early Intensive Developmental and Behavioral Intervention Autism Program, and the Housing Stability Services Program.

The department said that any potential misuse of the UI system will be closely examined. A specialized strike team has been tasked with conducting a thorough review and reporting its findings directly to department leadership, consistent with the department’s mission to protect program integrity and safeguard workers.
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The Employment and Training Administration’s Chicago regional office notified the state that it will conduct an onsite review of Benefit Payment Control operations and other integrity-related functions. The review will focus on determining whether fraud, waste, or abuse identified in other Minnesota programs is also present in the UI or pandemic-era UI programs.

The letter also requested that the state provide key documentation to support the review. The UI strike team conducting the assessment includes staff from both the national and regional offices of the Employment and Training Administration.

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