By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — There are conflicting numbers between the Kansas Department of Labor and the office of the Kansas Legislative Division of Post Audit as to how widespread the payments disbursed to fraudulent unemployment claims in the state are, but a local legislator says the audit report shows where some of the vulnerabilities ultimately lie.
"Because of the pandemic, they were extending unemployment to like self-employed hairdressers or masseuse or independent contractors, they didn't have the normal fraud stop that you would have," said Waggoner. "As an employer, you get somebody filed for unemployment and you confirm it or you deny it or you give your rationale. With this, there was no one to send it to because they were self-employed."
Looser rules regarding proof of income made it easier for untrue claims to be both filed and paid.
"Basically, the organized fraudsters saw the vulnerability, that you could just file and you didn't have to, there was no employer to confirm it and you didn't even have to prove your income," Waggoner said. "Rules and regs on the federal level made it very easy for fraud to happen."
There are also issues with the Department of Labor's computer system that the legislature does plan to address.
"It's not just that we're unable to solve this problem," Waggoner said. "It's just that it didn't happen a number of years ago. As I understand, there was money appropriated, but just, the agencies, once they get the money, they don't have to spend it exactly how the legislature thought they were going to spend it."
The Legislature plans a full week of floor work starting Monday.
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