Benefit Payment Control Unit (BPCU)
200 Folly Brook Blvd.
Wethersfield, CT 06109
Hours of Operation: 8:00 a.m. – 4:30 p.m., Monday - Friday
Report Unemployment Fraud
Telephone Number: (860) 263-6325
Fax Number: (860) 263-6343
Unemployment Fraud Hotline: 1-800-894-3490
The Benefit Payment Control Unit (BPCU), governed by
Section 31-273 of the Connecticut General Statutes and
to 31-273-9 of the Regulations of Connecticut State Agencies, is responsible
for the prevention, detection and recovery of overpaid unemployment
compensation benefits. There are two types of overpayments: fraud and
non-fraud. A fraud overpayment is the result of wilful misrepresentation or
wilful nondisclosure of information provided by an individual in order to
obtain unemployment compensation benefits.
Methods used to prevent or limit fraud overpayments include the use of sophisticated
computer cross-matches with state and federal databases, return-to-work
reports, video surveillance, and tips from the public.
Overpayments to individuals can also result from an employer
protesting an eligibility issue, or from the reversal by an appeals referee
of an earlier decision to grant benefits. An individual who fails to seek
work or who fails to properly maintain their eligibility status during the
claim series can also be charged with an overpayment. Such overpayments are
referred to as “non-fraud” overpayments.
When a potential overpayment has been detected, staff will conduct
a full audit of the weeks involved. Once the audit is completed, a letter
will be sent to the individual explaining the potential overpayment as well
as the individual’s rights and responsibilities.
After an overpayment decision becomes final, immediate repayment of those benefits is
required. If payment is not made immediately, the Labor Department may
employ one or all of the following methods to recoup the overpaid amount.
Voluntary Repayment –
The Labor Department accepts personal checks, money orders and cash.
Payments may be sent to:
Connecticut Department of Labor
Post Office Box 30290
Hartford, CT 06150
Please include your social security number on your check or money order.
NEW! Credit Card/E-Check
- You may also pay your overpayment immediately using your Visa, Master Card, American
Express, Discover, Debit Card, or E-Check at (Official Payments link). Please note: A
convenience fee will be charged by the service provider. You will be
informed of the amount of the convenience fee during the transaction and you
may elect to cancel the transaction.
– A full or partial deduction directly from the claimant’s
weekly benefit applied toward the overpayment.
Administrative Penalty Weeks
– Penalty weeks are assessed to all fraudulent
overpayments established prior to October 1, 2013, and are imposed in
addition to the actual amount of the overpayment. They are
essentially forfeited weeks, where you file your weekly claim, but receive
no money. These penalty weeks do not reduce the
balance of the original overpayment.
- A monetary penalty is assessed to all fraudulent overpayments established
on or after October 1, 2013 and is in addition to the actual amount of the
overpayment. For the first fraudulent overpayment one will have to pay a
penalty in the amount equal to 50% (1/2) of the overpayment amount and for
any additional fraudulent overpayments one will have to pay a penalty equal
to the amount of the overpayment (100% of the overpayment). These payments
do not reduce the balance of the original overpayment.
– A court order that is issued against the
individual's earnings and applied toward the overpayment
State and Federal Tax Refund Intercepts
– Agreements with the State Department of Revenue Services and the U.S. Treasury allows for
the intercepting of tax refunds to be applied against non-compliant overpayments.
– For fraudulent overpayments, if found to be in non-compliance of the law, interest at a rate of 1% of the
current balance will be charged each month.
Federal Tax Refund Intercepts
- In an effort to recover outstanding fraudulent
overpayments, the Connecticut Department of Labor (CTDOL) participates in the
Treasury Offset Program (TOP). TOP is a partnership with the
Internal Revenue Service and the U.S. Department of Labor which allows the CTDOL
to request assistance from the IRS to intercept a taxpayer’s federal income tax
return or federal wages.
What is Unemployment Insurance Fraud and What
is the Department of Labor Doing About it?
Unemployment Insurance fraud is any wilful misrepresentation or wilful
nondisclosure of information made by an individual(s) to receive
unemployment benefits the individual(s) would otherwise not be entitled to.
The Connecticut Department of Labor has implemented several initiatives to
combat unemployment fraud, including: a 24 hour fraud hotline, online fraud
reporting and an aggressive surveillance program. Unemployment fraud is a
very serious and costly offense that can carry severe repercussions
including: repayment, administrative penalties, monetary penalties, interest
charges and prosecution.
– Information received through the fraud hotline and on-line
reporting will be reviewed and investigated for potential
fraudulent filing. If you suspect unemployment fraud,
please “click” on this link for more details.
- Surveillance methods are used to capture potential fraud cases
using information from public tips. Once the surveillance report is
received, a determination will be made if the individual is
fraudulently filing for benefits. The agency stops benefits
as appropriate and sets up overpayments. This is an important step in
helping to improve the integrity of our benefits system.