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Know the Rules
You commit fraud if you knowingly provide false or misleading information or withhold relevant information for yourself or another person, to obtain or increase benefits. Unemployment benefits fraud is punishable by law, both felony and misdemeanor, and violators could face serious penalties and consequences. Be aware that:
- Failure to follow the rules can result in serious consequences.
- You must respond truthfully and fully to all TWC inquiries.
- In Texas, unemployment benefits fraud is routinely prosecuted at the felony level.
Examples of Fraud
You may be committing fraud if you:
- Start work and do not accurately report your work and work hours when you request benefit payment.
- Work includes, but is not limited to: full-time work, part-time work, reduced hours, temporary work, contract labor, casual work, side jobs, commission, and self-employment profits.
- Do not accurately report gross earnings when you request benefit payment.
- Do not report a job separation (for example, fired, quit, laid off) that occurred while you were receiving unemployment benefits.
- Intentionally give us false information or withhold relevant information.
- Use another person’s identity to apply for benefits.
Fraud Detection
To detect fraud, we compare what you report with other sources to verify the accuracy. If you don’t correctly report your work after being hired, TWC will find out.
Potential Consequences
If you receive unemployment benefits, you are legally responsible for following state and federal law.
If you commit unemployment fraud, you must pay back benefits you were overpaid and could face a variety of penalties, including:
- Criminal prosecution by state or federal authorities
- A possible jail or prison sentence and/or fines
- Loss of remaining benefits on your claim
You are not eligible for benefits you received after the first incident of fraud. For example, if you did not correctly report earnings for 10 weeks, you are not eligible for the benefits you received from the first week you misreported earnings all the way through the end of your claim.