LINCOLN- A state audit has alleged a lack of oversight for millions of dollars of unemployment checks issued during the pandemic including improper overpayments, checks sent to prison inmates and some cases of identity theft. The auditor says the Nebraska Department of Labor did not properly check if applicants were eligible for certain payments or if they had lost jobs. The agency is estimating 66% of all payments were in error and has identified over $600,000 in questionable payments. Further, the auditor cannot verify the accuracy of $800 million unemployment benefits issued by the state.

A Labor Department spokeswoman said the agency disagrees with most of the letter's conclusions. The department said the pandemic brought about the unprecedented amount of unemployment claims that came with it.

“The unemployment insurance program played a vital role of supporting economic stabilization in responding to the COVID-19 pandemic. It was critical to the stability of the Nebraska economy to ensure payment was made timely,” the labor department said.

Governor Ricketts deferred comments to the department. To help the department in March, the governor began to waive many pre-pandemic requirements for unemployment applications. The department claims many cross-matching programs have been completed and will continue to review claims.

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