Ala. governor signs unemployment comp fraud law
MONTGOMERY, Ala. (AP) — Alabama Gov. Robert Bentley has signed into law a bill to increases the penalties for people who are convicted of committing unemployment compensation fraud.
The new law was signed by the governor Thursday. The bill was sponsored by Republican Rep. Paul DeMarco of Homewood.
The Alabama Department of Industrial Relations has estimated that more than $15 million in unemployment compensation benefits were fraudulently obtained in Alabama last year.
The new law will prevent violators from receiving future unemployment compensation benefits for one year after a first offense and two years after a second offense. The law requires full repayment of benefits obtained fraudulently until those funds are fully repaid.
Bentley said the law will help preserve unemployment benefits for people who are "actively looking for work."