Unemployment Insurance Fraud

The Vermont Department of Labor diligently strives to ensure that employers, workers, and others involved in the programs we administer follow the laws, rules and required procedures, to the extent of our available resources. You can assist us in this mission by reporting suspected violations of these laws, rules and required procedures.

The source of these reports will remain confidential.

To assist us with maintaining integrity in the Workers’ Compensation and Unemployment Insurance programs, as well as other programs we administer, please review and select the best fitting reporting tool.

Unemployment Insurance Fraud: Fraud occurs when someone intentionally lies about a material fact in order to affect his/her obligations or benefits regarding unemployment insurance or workers’ compensation. Sometimes, fraud occurs when someone lies about a material fact in order to affect someone else’s obligations or benefits.

Three Things UI Claimants Can Do To Minimize Fraud

  1. If the claimant has a common number UI Claimant PIN (i.e. 1111, 2222, 1212, last four of SSN, etc.), they should immediately request a pin change by calling the UI Claimant Assistance Line at: 1-877-214-3332
  2. If the claimant believes his/her account(s) have been compromised, they should file a fraud notice with the Department at Report suspicious activity on the Claimant Portal or your claimant account
  3. All claimants should actively monitor their UI account, as well as any other online accounts (i.e. bank accounts, credit cards, etc.) to ensure there is no unauthorized activity

Misclassification

Misclassification occurs when an employer calls someone who is an employee a “subcontractor” or an “independent contractor” to avoid providing benefits such as Workers’ Compensation or Unemployment Insurance, or to avoid withholding and paying payroll taxes.

Investigation Outcomes

While specific details about investigations must remain confidential, the department is permitted to provide aggregate data on completed investigations and the names of companies currently debarred from contracting with the State of Vermont as a result of misclassifying.

Review companies currently debarred from contracting with the State of Vermont

 

Other Links

Validate if an employer has workers’ compensation insurance

Report an employer operating without workers’ compensation insurance