Kentucky unemployment insurance audit identifies problems with system

Kentucky Auditor Mike Harmon’s office released a report identifying nine issues with Kentucky’s unemployment insurance program, including problems with security and the state’s auto-pay system. The report also found that the state paid over $195 million to over 28,000 out-of-state claimants between June 2020 and June 2021.

Unemployment insurance refers to a joint federal and state program that provides temporary monetary benefits to eligible laid-off workers who are actively seeking new employment. Qualifying individuals receive unemployment compensation as a percentage of their lost wages in the form of weekly cash benefits while they search for new employment.

The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility requirements and length of benefits.

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