Unemployment Insurance Fraud

The Division of Employment Security (DES) actively engages and prosecutes unemployment insurance (UI) fraud. Offenders may be subject to canceled benefits, fines of up to 100% of overpaid amounts, and imprisonment. Therefore, it is very important that you are aware of both your rights and your responsibilities, in order to avoid fraud.

UI Claims Fraud:

  1. Workers/claimants must report all earnings for each week. This includes part-time wages, tips, commissions, bonuses, etc. Be especially certain to report any vacation pay, holiday pay, and WARN pay, and the correct dates. If a worker/claimant does not report this income in full each week, he or she is committing fraud.
  2. A claimant’s work search record must list only actual employers that he or she actually contacted. The DES randomly audits claimants each week. DES contacts all the employers listed to ensure that the claimant actually applied with them. If a claimant makes up or falsifies the work search record, he or she is committing fraud.
  3. If a claimant deliberately makes a false statement or withholds information in order to receive benefits, he or she is committing fraud. If an overpayment of benefits occurs, the claimant must repay them. Click here for more information about overpayments.

The DES appreciates all tips regarding individuals fraudulently receiving benefits. To report UI claims fraud, please email: ReportUIFraud@labor.mo.gov, or call 573-751-0057.

Due to strict DES confidentiality laws, we cannot confirm or deny an investigation initiated by a UI Fraud submission or disclose information about an employer or claimant.

Worker Misclassification Fraud:

  1. Employers cannot classify employees as independent contractors in order to avoid paying tax on them unless they truly are independent contractors. There are very strict requirements for independent contractors. If an employer falsely reports someone as an independent contractor, it is committing fraud.
  2. Employers must report all of their employees and their wages. If an employer does not report someone or something that it knows to be “reportable”, the employer is committing fraud. Our informational pages on liability and what is reportable can help employers comply with their reporting responsibilities.

The DES appreciates all tips regarding employers engaging in fraudulent reporting or fraudulently failing to report. To report employer fraud, please use the Report Worker Misclassification/1099 Abuse form (MODES-4610) or call the hotline at 573-751-1099.

Due to strict DES confidentiality laws, we cannot confirm or deny an investigation initiated by a UI Fraud submission or disclose information about an employer or claimant.