The purpose of this audit was to identify potential improper payments the Louisiana Workforce Commission made to incarcerated individuals who, according to LWC policy and state law, were ineligible to qualify for Unemployment Insurance and federally funded COVID-19 pandemic-related unemployment assistance programs. We found that LWC made approximately $6.2 million in State and Federal UI payments to 1,195 incarcerated individuals who do not appear to have been eligible for the benefits. We found that 81 percent identified through this analysis qualified through the Federal UI program designed for contractors and gig (occasional) workers, which was created as a part of CARES Act. Contract and gig workers’ income is not reported to LWC by employers, since these individuals are not classified as employees. As a result, LWC does not have electronic wage data to use for eligibility purposes and instead must rely upon the amount of income reported by the applicant on their application for unemployment benefits in order to make eligibility determinations.
LA
United States