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Program: What penalties can be assessed against employers?

A penalty may be assessed when an employer commits fraud by misrepresenting, misstating, or failing to disclose information in order to deny unemployment benefits. For a first occurrence of fraud, the amount of penalty is 25 percent of the amount of benefits denied. The amount of penalty goes up to 100 percent of the amount of benefits denied for subsequent occurrences of fraud.

An employer also can be found guilty of a misdemeanor and subject to a fine or imprisonment in the county jail for making a false statement or knowingly failing to disclose a material fact to prevent or reduce the payment of unemployment benefits.

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