Stop Unemployment Fraud Act

Prevention of Fraud and Improper Payments: The bill implements data matching through an integrity data hub and comparisons with the National Directory of New Hires, information on incarcerated individuals, and data regarding deceased individuals to detect fraud (Section 3).

Protection of Claimant Rights: Regulations for identity verification must include due process protections for claimants (Section 2).

Fairness in Claims Processing: Verification procedures are required to ensure they do not result in the flagging, denial, or delay of claims based on personal characteristics such as race, color, religion, sex, national origin, age, disability, or political affiliation (Section 2).

Safeguards Against Systematic Errors: The Secretary of Labor must ensure that documentation requirements do not produce systematic mismatches that unfairly deny or delay unemployment compensation payments (Section 2).

Infrastructure Improvements: States may use up to 5 percent of recovered overpayments to modernize their unemployment insurance technology infrastructure (Section 7).

Increased Burden of Documentation: Claimants must provide at least one valid Federal or State government-issued identification document along with one or more supporting documents, such as utility bills or lease agreements, to verify their identity (Section 2).

Delay in Receiving Payments: Payments shall not be made prior to the determination of eligibility, which includes the required identity verification process (Section 4).

Increased Requirements for Job Seekers: To be considered as actively seeking work, individuals must now register for employment services and maintain a specific record of employers contacted, including the method and date of contact, which must be provided to the State agency each week (Section 6).

Strict Proof Standards: A claimant's self-attestation or self-certification will no longer be sufficient on its own to prove eligibility for compensation (Section 4).