Unemployment fraud: Ohio Senate approve

Amid the COVID-19 pandemic, Ohio’s unemployment benefits system was plagued by rampant fraud. On Wednesday, the Ohio Senate took some steps to curb future catastrophes.

Ohio doled out more than $505 million in fraudulent overpayments during the pandemic, but most occurred on federal programs, which have since ended. About $19 million in fraud happened in Ohio’s traditional unemployment system, according to an analysis from Policy Matters Ohio.

Sen. Bill Reineke, R-Tiffin, said Ohio’s system faced “unbelievable strain” and that led to infuriated residents.

Senate Bill 302, which passed unanimously Wednesday, makes several changes to curb unemployment fraud. They include:

• requiring sharing information between state departments to ensure those seeking benefits aren’t incarcerated or dead.
• verifying employees’ income with tax filings if employers don’t do so within 10 days. Opponents of the bill worry this could slow down the process.
• prohibiting direct deposits of benefits to financial institutions that do not have a physical location in Ohio.
• allowing employers to report when those receiving benefits aren’t showing up for job interviews or meeting other requirements of receiving the money.
• collecting data into an annual report about claims, fraudulent claims and calls received by the call center, among other information.