A bill aimed to crack down on unemployment fraud neared final approval Wednesday with sharp partisan division over whether it would do what it promises or hurt laid-off workers.

The House joined the Senate in approving the bill, which includes a “three strikes and you’re out” clause for repeat fraudulent claims. It also identifies consequences for unemployment fraud and misrepresentation, and clarifies that criminal prosecution may be brought against workers and employers who commit unemployment fraud.

The bill also would tighten the requirements to obtain future unemployment benefits if someone loses his or her job because of misconduct.

Sen. Christopher Rector, R-Thomaston, called the bill “important action to strengthen our unemployment laws, reduce fraud that affects all of us and provide support services for those seeking to return to work.”

Rector is the Senate chair of the Labor, Commerce, Research and Economic Development Committee, which endorsed the bill.

Also supporting the bill, which faced only final votes in each chamber, was Republican Gov. Paul LePage.

Democrats said the bill would reduce benefits to unemployed workers. During the floor debate, they said the measure put a target on the backs of job seekers, rather than stamping out unemployment fraud or creating jobs.

They are upset over a provision that would delay unemployment benefits until after laid-off employees have used their vacation time. Democrats said passage would make Maine one of only 11 states that delay unemployment benefits based on earned vacation pay.

“Laid-off workers are already struggling to make ends meet,” said Sen. Troy Jackson, D-Allagash, who serves on the labor committee. “Workers not only count on but need their earned benefits, like vacation time, to get by. We should be helping Maine workers stay afloat, not taking money out of their pockets during a time of transition.”

The final votes were expected by today, and approval was expected based on previous shows of support in each chamber.

 

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