Payment of Unemployment Benefits to Illegal Aliens
Purpose. To inform State employment security agency (SESA) Administrators of the appropriate procedures for preventing and detecting payment of unemployment benefits to illegal aliens.
Background. Section 3304(a)(14) of the Federal Unemployment Tax Act (FUTA) requires SESAs to take certain actions regarding aliens filing claims for unemployment compensation. The intent of these laws is, in brief, to prohibit paying unemployment compensation to an alien whose wage credits are based on services performed while the alien was not legally entitled to employment within the United States. Lack of benefit entitlement can stem from either illegal entry or employment obtained in violation of the alien's status or residence.
Recently, pilot studies were begun to determine the extent to which illegal aliens were filing for unemployment benefits. Several SESAs are participating in the study in cooperation with the Immigration and Naturalization Service (INS) and with technical assistance from ETA. In two sites the studies were initiated after the INS found evidence that an illegal alien apprehended for deportation was collecting benefits at the time the individual was apprehended. The preliminary findings indicate potentially widespread abuse of the unemployment insurance program by illegal aliens.
https://workforcesecurity.doleta.gov/dmstree/uipl/uipl83/uipl_0683.htm
