Federal labor department to investigate Hawaii’s unemployment insurance system

Federal labor department to investigate Hawaii’s unemployment insurance system
Unemployment offices, Hawaii (Source: HNN)

HONOLULU, Hawaii (HawaiiNewsNow) - The Federal Department of Labor is opening two investigations into Hawaii’s unemployment insurance system.

One investigation centers around a Legal Aid allegation of discrimination because of nationality or citizenship, while the other is part of a nationwide investigation of fraud and verification procedures.

The Labor Department Office of Inspector General issued subpoenas to Hawaii’s attorney general as part of the nationwide investigation.

“Regarding how we were administering the money: Different analytics as to how we were responding to the claims,” Hawaii Attorney General Clare Connors said.

The state has accidentally paid out millions of dollars in fraudulent unemployment claims, and has also been highly criticized for a major backlog in getting payments out to those in need.

None of the agencies involved would comment on the investigations.

Copyright 2021 Hawaii News Now. All rights reserved.