Audit Shows WA State Allowed Illegal Unemployment, Leave Payments

It's not necessarily that people were trying to dupe the system, it's likely due to ignorance. However, once again, the WA State Auditor's Office find financial issues with WA State.

   Audit shows millions in 'illegal' ESD payments

WA State's Family Leave Plan allows workers to get compensation for time off due to caring for a family member, or a relative. However, under state law, people utilizing the Paid Family and Medical Leave program at NOT allowed to also receive unemployment benefits at the same time.

Auditor Pat McCarthy's Office released information late last week indicating millions were paid out to Family Leave participants for unemployment benefits. According to the WA State Standard: 

"...findings from the State Auditor’s Office found 2,270 instances from July 2022 to June 2023 where the department paid both types of benefits to the same recipients in the same week. That totaled about $1.9 million. 

Overall, the department paid about $1.3 billion in Paid Family and Medical Leave claims and about $1.2 billion in unemployment insurance claims during the 2023 budget year."

State law requires recipients to repay whatever benefits they are not eligible to receive, but McCarthy's Audit shows ESD did not have a system in place for those people to make the payments.

The Auditor's office recommended ESD (Employment Security Department) set up procedures to ensure proper checks are made when people apply for Paid Family Leave, so no double dipping will occur.

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However, ESD noted these overpayments reportedly were less than a half-percent of all unemployment paid out in 2023.

According to the Auditor's office 2,270 persons received both Paid Family Leave and ESD payments, during the time period they conducted the audit.  It was also suggested ESD notify applicants when they first apply that they cannot already be receiving Paid Family Leave funds.