KANSAS CITY, Mo. — The federal government overpaid unemployment benefits to the tune of $14 billion in 2011, and now they want some of that money back.
According to the U.S. Justice Department, administrative errors are to blame for the overspending, and some people receiveing unemployment checks aren’t actually entitled to that money at all.
In order to receive an unemployment check, a person must have lost their jobs and must be actively searching for new work. People who have been fired or who have quit are ineligible for unemployment benefits.
But the government says that administrative errors on the part of the government, employers and unemployed workers allow ineligible people to still receive unemployment checks – and that it is hard to track and stop. In addition, federal officials say that there are some rare cases of unemployment fraud.
The government says that they will be sending out letters to those people who need to repay unemployment benefits. In some states, the recipient can end up in court, or have their wages or tax refund taken.
Officials admit, though, that the government fails to recoup most of the money it hands out by mistake.