PA spent $376 Million in Erroneous Unemployment Payments

HARRISBURG — Times are tough for Pennsylvania’s 516,000 unemployed workers, but some of those workers are getting by with a little extra help from the state.

Of the nearly $3.33 billion in unemployment compensation the state paid out between July 2010 and June 2011, an estimated $376 million, or 11 percent, were erroneous payments, according to data released this month by the U.S. Department of Labor.

Since July 2008, the state has paid out more than $1 billion, or about 10 percent, in overpayments as a result of fraud or clerical mistakes.
The report covers only the 26 weeks of state-level unemployment compensation payments, not the additional levels of federal unemployment compensation that provides benefits for up to 99 weeks.
“Any overpayment is unfortunate and, obviously, we are working to detect and recover improper payments,” said Sean Yeakle, press secretary for the state Department of Labor and Industry. “We have investigators who look into it, and we have partnered with other states to find solutions.”
Yeakle said overpayments can occur for various reasons, including recipients who continue to collect benefits after returning to work, clerical errors on the part of employers or the department, and improper reporting of firings.