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Unemployment abuse merits scrutiny

Oklahoman Published: March 18, 2014

In his role as lieutenant governor, Todd Lamb visits all 77 Oklahoma counties each year, conducting numerous town halls and meeting with local business leaders. In the past, the workers’ compensation system was a top priority for those entrepreneurs. Now that lawmakers have overhauled the system, another issue is rising in importance: unemployment insurance abuse.

“That’s an issue, maybe not as large-scale as workers’ comp, but it’s darn close as far as fraud in the system and a very punitive policy as it relates to employers,” Lamb told The Oklahoman’s editorial board in a recent meeting.

In many communities, Lamb said, employers have observed laid-off workers who choose to stay on unemployment “as long as they can, even when a job’s been offered.” Those individuals reportedly aren’t pursuing work or are even falsifying documentation of job-search activity. Such fraud is illegal under state law, but Lamb says “there’s not enough teeth” in those statutes to deter the activity.

The same meetings that highlighted this issue may have also pointed to a solution. One town hall attendee noted that New Mexico law has been very successful in combatting fraud. In New Mexico, if a business offers to rehire an employee at the same basic pay and the worker declines the opportunity, that worker then becomes ineligible for unemployment benefits.

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by The Oklahoman Editorial Board
The Oklahoman Editorial Board consists of Gary Pierson, President and CEO of The Oklahoma Publishing Company; Christopher P. Reen, president and publisher of The Oklahoman; Kelly Dyer Fry, editor and vice president of news; Christy Gaylord...
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