What is consideredunemployment insurancefraud?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is consideredunemployment insurancefraud?
My employer decided that he could no longer afford to pay wages in 10/09 and told us to collect unemployment. However we were still required to report for work everyday. Is this considered UI fraud?
Asked on October 13, 2010 under Employment Labor Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
It most certainly is unemployment insurance fraud--though note that if you participated in it (i.e. you took the UI while working for no wages) you are an accomplice. If you come forward in the correct way to report this fraud, there is a very good chance that you could avoid liability (or at least face only minimal liability), but you should consult with a criminal defense attorney about how best to do this.
Other laws your employer may have broken:
1) Wage and hour laws: employees must be paid for all hours worked. If overtime was worked, nonexempt employees should receive overtime, too. You could potentially recover back wages.
2) Tax laws--getting work for free and may be considered a taxable gain the employer should have paid taxes on.
You definitely should consult with an attorney. If you participated and this comes to light, you could face substantial liability; coming forward in the correct way could minimize your liability and also potentially allow you to recover back wages. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.