The Minnesota Unemployment Insurance (UI) Program operates a continuous investigation program to detect and prevent administrative errors, benefit overpayments, tax irregularities, and applicant and employer fraud. These activities protect the unemployment compensation fund by ensuring that all employer tax is collected and that benefits are paid only to eligible applicants.

You can help prevent fraud by reporting potential violations to the UI Program using the online Fraud Report. Your identity may be kept confidential if you so desire.

Applicant Fraud: UI Program auditors follow up on tips from the public regarding applicants who are working while receiving unemployment insurance benefits. The UI Program refers flagrant cases of fraud to the courts for prosecution.

Employer Fraud: UI Program auditors also investigate employer tax avoidance schemes to avoid payment of Minnesota Unemployment Insurance taxes. Common schemes include the designation of employees as independent contractors and the creation of shell corporations.

Violations by applicants and employers may be prosecuted as felony theft under the fraud provisions of the Law.