House Approves Grove Unemployment Compensation Reform Legislation
3/13/2012
Measure would increase penalties for individual and business fraud

HARRISBURG - The House of Representatives today unanimously approved legislation authored by Rep. Seth Grove (R-Dover) to further reform Pennsylvania’s unemployment compensation system and provide cost-saving anti-fraud measures.

Click to view Grove’s video comments 
“Pennsylvania’s Unemployment Compensation Trust Fund is nearly $4 billion in debt to the federal government so we must do all we can to ensure only those individuals who qualify for unemployment compensation are receiving the benefit,” said Grove. “Those who knowingly defraud the system are stealing from the taxpayers and should face stiff penalties. My legislation is meant to send the message that unemployment compensation fraud is unacceptable and perpetrators who are caught will be made to pay for the crime.” 

House Bill 1852 would address unemployment compensation fraud as follows:

Increases the penalty period for individuals who commit unemployment compensation fraud from two weeks to 10 weeks.  
Removes the current four-year limit on the imposition of these penalty weeks.  
Adds a 15 percent penalty to the total owed to the fund for a fraudulent claim. 
Creates a 52-week penalty for individuals who commit willful fraud to collect benefits while in prison. 
Raises the penalty of employers who fail to report from 10 percent to 15 percent and the penalty for accepting employee contributions from a minimum of $100 to a minimum of $500, with a maximum of $1,500 and six months in prison.

Grove noted his proposal could save the Unemployment Compensation Trust Fund nearly $154 million in fiscal year 2012-13 and $1.06 billion over the next seven years.

House Bill 1852 will now go before the Senate for its consideration.

More information about Grove and his legislative priorities is available at RepGrove.com or Facebook.com/RepSethGrove.


Media Contact: Nicole Wamsley                                                                               

nwamsley@pahousegop.com                                                             

717.783.8063                                                                                                

 


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