New York’s Leading Business Groups React to Labor Commissioner’s Comments on UI Fraud

January 6th, 2023

New York State Dept. of Labor Commissioner Roberta Reardon discussed Unemployment Insurance fraud on Capital Tonight, reiterating that approximately $4 billion was lost to fraud, not $11 billion as indicated in Comptroller Tom DiNapoli’s audit. The Commissioner also discussed the impact on businesses. National Federation of Independent Business (NFIB) and Upstate United released the following statement in response to the Commissioner’s interview:

“Businesses across New York State, especially struggling small businesses, have been shouldering the burden of New York’s massive Unemployment Insurance (UI) debt for two years without any state assistance. UI costs are piling up for businesses, paying thousands of dollars more compared to pre-pandemic levels, and there is no end in sight.

Moving forward, the Department of Labor must be tenacious and transparent with its efforts to recover fraudulent payments. Employers deserve complete accountability and action from Commissioner Reardon and her team. Additionally, Governor Hochul and legislative leaders must include an accelerated repayment plan in this year’s budget that will eliminate New York’s $8 billion debt to the federal government.

New York’s business community has been calling for UI relief and reforms for two years. It’s time for our leaders in Albany to finally step up for struggling employers and solve this crisis.”