All states are required to assess a penalty of not less than 15% of the amount of the fraudulent payment. Other penalties under state unemployment insurance laws generally include:
- criminal prosecution with fines and/or incarceration;
- required repayment of fraudulently collected benefits;
- forfeiting future income tax refunds;
- and/or permanent loss of eligibility for unemployment compensation.
Commission of unemployment benefit fraud may also be prosecuted by the U.S. Department of Justice in federal courts under 18 U.S.C § 1341 or other appropriate federal statutes.