Former federal government employees and other Hoosiers who lose their jobs through no fault of their own in the months ahead may have a more difficult time initially obtaining, and continuing to receive, unemployment benefits from the state.
Republican Gov. Mike Braun signed two executive orders Thursday he claims will reduce unemployment fraud and spur individuals looking for work to more quickly accept any employment opportunity.
"Unemployment insurance is an important temporary safety net, but it should be exactly that: temporary assistance while searching for a new job," Braun said.
The governor's first order directs the Department of Workforce Development (DWD) to "take all necessary steps" to require unemployment recipients conduct additional work search activities each week as a condition of receiving benefits, and to increase the frequency, scope and rigor of DWD's work search verification process.
Braun also urges DWD to attempt to get claimants into a WorkOne career resource office in the first week of unemployment — even if it means making a virtual appointment instead of the in-person meetings Braun prefers for state government activities.
"Research shows more rigorous work search requirements lead to unemployment recipients finding work faster; even just sending notices reminding beneficiaries of work search requirements led to fewer weeks on unemployment," Braun said. "I'm signing an executive order to require more meaningful work search activities to encourage workforce participation, grow our state economy and promote a culture of work."
Braun's order appears to conflict with a state law that gives unemployed Hoosiers four weeks to report to a WorkOne office. The Republican-controlled Senate last week even voted in Senate Bill 371 to extend that to six weeks to reduce the cost of the service.
The governor's other directive requires DWD to implement "all necessary and proper measures" to enhance the integrity of the unemployment insurance program, reduce the rate of inappropriate payments and combat fraud.
That may include verifying applicant eligibility through additional databases, investigating when multiple claims are filed from the same internet connection or using similar mailing addresses or bank account numbers, and re-verifying claims from out-of-state applicants prior to approval and payment, according to the order.
"We need to crack down on fraud in unemployment insurance to protect the integrity of the program and the taxpayer dollars that fund it. Today's executive order will empower the Department of Workforce Development to use data cross-checking tools to find fraudulent activity and stop improper payments," Braun said.
According to the U.S. Department of Labor, Indiana's 8.05% improper payment rate is well below the 10% threshold set by the federal Payment Integrity Information Act, and 10th lowest among the 50 state unemployment programs.
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