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The Potentially Unintended Effect of the Unemployment Insurance Integrity Act on Employment Settlement Agreements

The amendments to the Unemployment Insurance Integrity Act quietly went into effect as of October 21, 2013.  Congress passed the Unemployment Insurance Integrity Act (“Act”) in late-2011 as part of the Trade Adjustment Assistance Extension Act of 2011 (“TAAEA”). While the TAAEA is primarily concerned with extending retraining assistance for employees displaced by foreign workers, the Act requires states to incorporate provisions into their own Unemployment Insurance laws to (1) enhance penalties for fraudulent Unemployment Insurance claimants; (2) revise the timing of "new hire" reports; and (3) impose new obligations on employers (and their agents) with respect to responding to Unemployment Insurance claim notices. 

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TAGS: Employment Law, Employment Settlement Agreements, Unemployment Insurance Integrity Act

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