COVID-19: Recovery of Millions in Pandemic-Related UI Overpayments Improperly Waived, Including Fraud

Date Issued

Thursday, September 25, 2025

Submitting OIG

Department of Labor OIG

Agencies Reviewed/Investigated

Department of Labor

Report Number

19-25-009-03-315

Report Type

Audit

Special Projects

Pandemic

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$240,973,884

Funds for Better Use

Report updated under NDAA 5274

External Link

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
001	Yes	$0	$0
Work with states to strengthen waiver approval processes to prevent the improper waiving of UI overpayment recoveries when federal dollars are at stake.
002	Yes	$0	$0
Work with the Office of the Chief Financial Officer (OCFO) to develop and implement a specific process designed to detect when states have improperly waived UI overpayment recoveries, providing time for states to course correct and minimize the risk of financial loss.
003	Yes	$0	$0
Work with Michigan to ensure proper post-investigative actions are taken for the five confirmed fraud cases identified in this report.
004	Yes	$240,926,764	$0
Remedy the $240,926,764 in questioned costs.
005	Yes	$0	$0
Work with state workforce agencies to ensure they retroactively submit accurate and complete information related to overpayment recovery waiver amounts for FPUC, PUA, and PEUC, for all pandemic-related reporting periods.