Unemployment Insurance Fraud

[Donna in California]

We are a small electrical contracting company with 6 employees, and had to lay off one of our guys back in early May, 2005. He established unemployment benefits which we agreed with. He has since been seen (by our other employees) working independently, apparently under the table, on an adjacent residential project. We reported this to the EDD, but they seemed, much to my surprise, quite reluctant to take my information. What right does the EDD have to continue withdrawing from our account to pay this man's unemployment insurance, when he is apparently fraudulently collecting it? What right do we have as an employer to force EDD to look into the matter?

Thank you in advance for your input.

[cbg]

I am not arguing with you; I am requesting information.

What evidence do you have that he is working under the table?

How do you know that he is not reporting that income?

In many states, an employee may work up to x number of hours without it affecting their unemployment benefits. Do you have evidence that he is exceeding this limit?

[Donna in California]

Thanks for a quick response.

No, we have no proof. Only the conversation between the ex and current employees.

However, does not the info. discussed in the conversation warrant looking into? Does the ex-employee simply get the benefits (pun intended) of the doubt even though there is a good indication that suggests he might be breaking the rules ? What is an employer to do ? Get out there with his camcorder and ask the ex-employee himself if he's being a bad boy? (Not being rude, but just trying to make my point.) Why would the EDD not want to protect their (...I mean our) funds against misuse? (I guess I've answered the last question myself )

[cbg]

Oh, believe me, I sympathize. BTDT, got the tee-shirt. Had employees who quit to work for someone else, get fired from the someone else, and get UI on my account.

I wish I had an answer for you. I was hoping that if you had some evidence, it might trigger an idea. If I think of anything, I'll let you know.

Have you tried calling the unemployment office again? Maybe talking to a supervisor? Sometimes you have to take things up a step on the ladder.

[Donna in California]

Yes, supervisor, good point.

Thanks for listening, and your reply.

Nice website, by the way!

[grasmicc]

When you reported it to them, did you report it specifically to a member of their group responsible for investigating fraud? Also, did you supply enough information to allow it to be investigated (such as the name of the company he may be working for/with?)...