An Act To Strengthen the Unemployment Insurance Laws and Reduce Unemployment Fraud
Maine Legislature, Session 125, LD 1725
Committee: Labor, Commerce, Research and Economic Development
Sponsors: RECTOR, PRESCOTT
Amends: 26 MRSA §1051, 26 MRSA §1192, 26 MRSA §1193

Legislative Document 
No. 1725 
S.P. 589 
In Senate, January 4, 2012 
An Act To Strengthen the Unemployment Insurance Laws and 
Reduce Unemployment Fraud 
Submitted by the Department of Labor pursuant to Joint Rule 204. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator RECTOR of Knox. 
Cosponsored by Representative PRESCOTT of Topsham.                                                                                    
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §1051, sub-§1, as amended by PL 1983, c. 118, is further 
amended to read: 
1.  False statement or representation. A person is guilty of unemployment fraud if 
he that person makes a false statement or representation knowing it to be false or 
knowingly fails to disclose a material fact:  
A.  To obtain or increase any benefit or other payment under this chapter or under an 
employment security law of any other state or of the Federal Government; 
B.  To prevent or reduce the payment of unemployment benefits to any individual; 
C.  To avoid becoming or remaining an employer under this chapter; or 
D.  To avoid or reduce any contribution or other payment required from an 
employing unit under this chapter. 
Each false statement or representation or failure to disclose a material fact shall constitute 
constitutes a separate offense. Unemployment fraud for a principal benefit amount of not 
more than $1,000 is a Class D crime. Unemployment fraud for a principal benefit amount 
of more than $1,000 but not more than $10,000 is a Class C crime, and unemployment 
fraud for a principal benefit amount exceeding $10,000 is a Class B crime. 
Sec. 2.  26 MRSA §1192, sub-§2, as repealed and replaced by PL 1975, c. 25, is 
amended to read: 
2.  Has registered for work. He The individual has registered for work at, and 
thereafter continued to report at, an employment office in accordance with such 
regulations as rules the commission may prescribe adopts, except that the commission 
may, by regulation rule, waive or alter either or both of the requirements of this 
subsection as to individuals attached to regular jobs and as to such other types of cases or 
situations with respect to which it the commission finds that compliance with such the 
requirements would be oppressive, or would be inconsistent with the purposes of this 
chapter. No such regulation shall A rule under this subsection may not conflict with 
section 1191, subsection 1;. 
The individual must actively seek work each week in which a claim for benefits is filed 
unless the individual is participating in approved training under subsection 6 or work 
search has been waived in accordance with rules adopted by the commission and provide 
evidence of work search efforts in a manner and form as prescribed by the commission. 
Failure to provide required work search documentation results in a denial of benefits until 
the documentation is provided, unless the commission determines there is good cause for 
the individual's failure to comply with this requirement; 
Sec. 3.  26 MRSA §1192, sub-§12, as corrected by RR 1995, c. 1, §23, is 
amended to read: 
12.  Participation in reemployment services.  The individual who has been referred 
to reemployment services, pursuant to a profiling system established by the 
commissioner, participates in those services or similar services unless it is determined 
that the individual has completed those services or there is good cause for the individual's 
failure to participate.; and 
For purposes of this subsection, "good cause" means all circumstances described in the 
definition of good cause in Chapter 1 of the rules governing the administration of the 
Employment Security Law, including child care emergencies and transportation 
emergencies. 
Sec. 4.  26 MRSA §1192, sub-§13 is enacted to read: 
13.  Reemployment eligibility assessment services; participation.  In the case that 
the individual has been referred to reemployment eligibility assessment services by the 
commission, the individual participates in those services, unless the commission 
determines there is good cause for the individual's failure to participate. Failure to 
participate in reemployment eligibility assessment services without good cause results in 
a denial of benefits until the individual participates. 
Sec. 5.  26 MRSA §1192, as amended by PL 2009, c. 271, §3 and c. 466, §2, is 
further amended by adding at the end a new paragraph to read: 
For purposes of subsections 2, 12 and 13, "good cause" means the unemployed 
individual is ill; the presence of the unemployed individual is required due to an illness of 
the unemployed individual's spouse, children, parents, stepparents, brothers or sisters, or 
relatives who have been acting in the capacity of a parent of either the unemployed 
individual or the unemployed individual's spouse; the unemployed individual is in 
attendance at the funeral of such a relative; the unemployed individual is observing a 
religious holiday as required by religious conviction; the unemployed individual is 
performing either a military or civil duty as required by law; or other cause of a 
necessitous and compelling nature. "Good cause" does not include incarceration as a 
result of a conviction for a felony or misdemeanor. 
Sec. 6.  26 MRSA §1193, sub-§2, as amended by PL 1979, c. 651, §§46 and 47, is 
further amended to read: 
2.  Discharge for misconduct. For the week in which he the individual has been 
discharged for misconduct connected with his the individual's work, if so found by the 
deputy, and disqualification shall continue continues until claimant has earned  4  10 
times his the claimant's weekly benefit amount in employment by an employer.  
A.  For the duration of any period for which he the individual has been suspended 
from his the individual's work by his the individual's employer as discipline for 
misconduct, if so found by the deputy, or until the claimant has earned  4  10 times 
his the claimant's weekly benefit amount in employment by an employer.; 
Sec. 7.  26 MRSA §1193, sub-§3, as amended by PL 1983, c. 650, §1, is further 
amended to read: 
3.  Refused to accept work. For the duration of his the individual's unemployment 
subsequent to his the individual's having refused to accept an offer of suitable work for 
which he the individual is reasonably fitted, or having refused to accept a referral to a 
suitable job opportunity when directed to do so by a local employment office of this State 
or another state or if an employer is unable to contact a former employee at last known or 
given address, for the purpose of recall to suitable employment; or the individual fails to 
respond to a request to report to the local office for the purpose of a referral to a suitable 
job, and the disqualification shall continue continues until claimant has earned 8 10 times 
his the claimant's weekly benefit amount in employment by an employer. If the deputy 
determines that refusal has occurred for cause of necessitous and compelling nature, the 
individual shall be is ineligible while such inability or unavailability continues, but shall 
be is eligible to receive prorated benefits for that portion of the week during which he the 
individual was able and available.  
A.  In determining whether or not any work is suitable for an individual during the 
first 12 6 consecutive weeks of unemployment, the deputy shall consider the degree 
of risk involved to his the individual's health, safety and morals, his the individual's 
physical fitness and prior training, his the individual's experience and prior earnings, 
his the individual's length of unemployment and prospects for securing local work in 
his the individual's customary occupation, and the distance of the available work from 
his the individual's residence. 
In determining whether or not work is suitable for an individual after the first 12 6 
consecutive weeks of unemployment, the deputy shall consider the degree of risk 
involved to his the individual's health, safety and morals, his the individual's physical 
fitness, his the individual's prior earnings, his the individual's length of 
unemployment and prospects for securing local work in his the individual's 
customary occupation and the distance of the available work from his the individual's 
residence. The individual's prior earnings shall may not be considered with respect to 
an offer of or referral to an otherwise suitable job which that pays wages equal to or 
exceeding the average weekly wage in the State of Maine. 
B.  Notwithstanding any other provisions of this chapter, work shall may not be 
deemed considered suitable and benefits shall may not be denied under this chapter to 
any otherwise eligible individual for refusing to accept new work under any of the 
following conditions:  
(1)  If the position offered is vacant due directly to a strike, lockout or other labor 
dispute;  
(2)  If the wages, hours or other conditions of work are substantially less 
favorable to the individual than those prevailing for similar work in the locality;  
(3)  If, as a condition of being employed, the individual would be required to join 
a company union or to resign from or refrain from joining any bona fide labor 
organization;  
(4)  If the position offered is the same one previously vacated by the claimant for 
good cause attributable to that employment or is the position which that the 
employee left for reasons attributable to that employment, but which were found 
insufficient to relieve disqualification for benefits under subsection 1, paragraph 
A, provided that as long as, in either instance, the specific good cause or specific 
reasons for leaving have not been removed or otherwise changed; and  
(5)  If the position offered is on a shift, the greater part of which falls between the 
hours of midnight to and 5 a.m., and is refused because of parental obligation, the 
need to care for an immediate family member, or the unavailability of a personal 
care attendant required to assist the unemployed individual who is a handicapped 
person.; 
Sec. 8.  26 MRSA §1193, sub-§5, as amended by PL 2009, c. 638, §1, is further 
amended to read: 
5.  Receiving remuneration. For any week with respect to which he the individual is 
receiving, is entitled to receive or has received remuneration in the form of: 
A.  Dismissal wages, wages in lieu of notice, terminal pay, vacation pay or holiday 
pay; or 
B.  Benefits under the unemployment compensation or employment security law of 
any state or similar law of the United States. 
If the remuneration under paragraph A is less than the benefits which that would 
otherwise be due under this chapter, he shall be the individual is entitled to receive for 
that week, if otherwise eligible, benefits reduced by the amount of the remuneration, 
rounded to the nearest lower full dollar amount;  
Sec. 9.  26 MRSA §1193, sub-§6, as amended by PL 1999, c. 464, §7, is further 
amended to read: 
6.  Has falsified.  For any week for which the deputy finds that the claimant made a 
false statement or representation knowing it to be false or knowingly failed to disclose a 
material fact in the claimant's application to obtain benefits.  In addition, for a first or 2nd 
occurrence, the claimant is ineligible to receive any benefits for a period of not less than 6 
months nor more than one year from the mailing date of the determination, and the 
commissioner shall assess a penalty of 50% of the benefits falsely obtained for the first 
occurrence, and 75% for the 2nd occurrence and 100% for the 3rd and any subsequent 
occurrences. If an individual is disqualified for a 3rd occurrence of statement falsification 
or misrepresentation in an effort to obtain benefits, the commissioner shall assess a 
penalty of 100% of the benefits falsely obtained and the claimant is disqualified from 
receiving benefits for an indefinite period; or 
SUMMARY 
This bill amends the employment security laws pertaining to specific benefit 
eligibility 
requirements, 
including 
work 
search, 
suitable 
work, 
misconduct, 
unemployment fraud disqualification and participation in the reemployment eligibility 
assessment services. 
The bill provides that it is an individual's responsibility to seek work and report work 
search efforts to the Maine Unemployment Insurance Commission and that failure to do 
so without good cause results in the loss of benefits; that participation in the 
reemployment eligibility assessment services is mandatory and failure to comply without 
good cause results in the loss of benefits; and that unemployment fraud for amounts 
exceeding $1,000 are either Class C or Class B crimes depending on the benefit amount 
involved. This change is consistent with the current prosecution of these crimes as theft 
under the Maine Revised Statutes, Title 17-A. 
The bill increases the earnings requirement for requalifying for benefits after 
disqualification for refusing suitable work from 8 times the individual's weekly benefit 
amount to 10 times; changes the requirement that the individual must broaden the 
individual's work search after 6 weeks of unemployment rather than 12 weeks; increases 
the earnings requirement to requalify for benefits after a misconduct disqualification from 
times the individual's weekly benefit amount to 10 times; imposes an indefinite 
disqualification from receiving benefits upon a 3rd determination of unemployment 
fraud; and adds vacation pay to the types of remuneration for which unemployment 
benefits are offset.