Arizona employers urged to help with unemployment fraud detection

Before COVID-19, the Arizona Department of Economic Security (DES) paid out approximately $3 million per week in benefits. The increase in unemployment claims as a result of the pandemic led to a weekly high payout of $287 million the week of June 6 (although the total included some retroactive payments for multiple weeks). Even as many businesses have reopened, jobless claims remain fairly steady at $167 million in benefits per week. With talks of extending federal benefits, employers are faced with continued pushback from employees receiving more benefits to stay home, even as they are recalled to work.

DES response to COVID-19

In response to the COVID-19 pandemic, DES modified its shared work program to support employers facing labor cuts. The program provides an alternative to employers faced with a reduction in force by allowing them to divide available work among employees and reduce hours, rather than laying off a section of their workforce.

Employees receiving unemployment benefits ($240 per week) from DES also qualified for an additional $600 per week under the Federal Pandemic Unemployment Compensation (FPUC). The benefit expired July 25, and at the time of writing, lawmakers have been unable to agree on what any additional benefits will look like.