By Paige Winfield Cunningham
Nearly 15 percent of unemployment benefits were paid last year to Virginians who didn’t qualify for them, according to the U.S. Department of Labor.
In 2009, Virginia ranked ninth for how much states overpaid workers claiming unemployment. Of $1.14 billion the state paid in unemployment, $166 million was handed to workers who didn’t qualify.
Louisiana had the highest rate of overpayment, at 42 percent, while Indiana came in second, with 33 percent. Add the states together, and in total 9 percent of all unemployment benefits were paid to unqualified citizens.
Calls on Tuesday to the Virginia Employment Commission were not returned.
George Wentworth, a policy analyst for the National Employment Law Project, describes two main types of workers who are unqualified for unemployment benefits, but may receive them anyway.
Many of the overpayments are given to workers who do lack a job, but it’s because they were fired—not laid-off. Workers who have been fired are not illegible for unemployment benefits, but Wentworth says it can take months for the state to prove that in court, end the payments and demand a refund.
Some states are required to decide appeals within a time period, like 45 days, but many states aren’t staying on schedule as they process extra applicants in the recession. Virginia, Wentworth said, is doing particularly badly in that area.
