Overview
- State auditors report $807.4 million in unemployment benefits were overpaid, with up to $760.7 million no longer collectible as of May 2025.
- The audit covers payments from Nov. 16, 2020, through Jan. 15, 2025, a period marked by surging claims and widespread fraud risks.
- Labor Secretary Portia Wu says the department recovered over $500 million in fraudulent or overpaid claims in 2025 and is pursuing another $1.3 billion, noting most unrecoverable cases predate the current administration.
- The department cites a court-ordered suspension of collections from January 2022 to September 2023, while auditors say collection efforts remained insufficient afterward, adding $33.6 million that was not adequately pursued.
- Meanwhile, residents are receiving repayment notices tied to prior years; letters cite missing identity documentation, officials warn identity theft may be involved, and they say proven victims will not have to repay, with examples ranging from about $1,400 to roughly $13,000.