AN ACT relating to unemployment insurance.

Create a new section of KRS Chapter 341 to require the Education and Labor Cabinet to refer suspected unemployment insurance fraud cases to the United States Department of Justice, the Kentucky Justice and Public Safety Cabinet, and the county attorney or Commonwealth's attorney within 30 days of the suspected fraud determination; require that public agencies immediately terminate employees or contractors determined to have collected or attempted to collect unemployment benefits while employed by the public…

Insurance Labor and Industry State Agencies Unemployment Compensation Workforce Technical Corrections Collective Bargaining Contracts

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This bill changes how Kentucky handles suspected unemployment insurance fraud. It requires the Education and Labor Cabinet to report suspected fraud to federal and state prosecutors within 30 days, and it requires public agencies to immediately fire employees or contractors suspected of collecting unemployment benefits while still on the payroll, without waiting for a court finding of guilt. It also blocks anyone under a fraud investigation from receiving unemployment benefits until the investigation clears them. Who it may affect: public agency employees and contractors, workers filing for unemployment benefits, and local prosecutors.

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