OLYMPIA, Wash. — A Washington state investigation blames a lack of “adequate controls” within the Employment Security Department (ESD) for nearly $2 million in overpayments.
The investigation, conducted by the State Auditor's Office, examined ESD payments between July 2022 and June 2023.
More than 2,200 claimants were identified as receiving simultaneous payments in unemployment benefits and paid family medical leave.
Auditors said the agency was breaking state law by allowing those payments to occur.
ESD commissioner Cami Feek said the agency has been aware of the inability to limit double payments.
Feek said ESD workers have identified about 75% of the overpayments, but the agency does not have the staff or technology to prevent them all.
"We have had to prioritize the work that needs to be done within the program on a variety of legislative mandates," Feek said.
Feek said the agency requested additional funding from the legislature to help solve the problem. The funds were granted this past July.
She said once ample staff is hired, and controls are put in place, the funds will be recovered. She said the issue should be resolved by the end of 2025.
"I find that incredible, to be honest, it's just taking so long for them to resolve this issue," said Pat McCarthy, state auditor.
McCarthy said if the agency was aware of the problem, it should have been dealt with immediately.
"I think it's incumbent upon the ESD to do what they need to do with regards to righting this, because there's nothing worse for the public to see something like this, where they're contributing money for a good cause, in my opinion, and yet there's no oversight," McCarthy said.
The state auditor's office plans to conduct a follow-up audit late next year to assess the agency's progress in addressing these issues.
The state’s paid family medical leave program, launched in 2020, allows Washington residents to take paid time off to care for newborns, and aging relatives, or to recover from personal illnesses or injuries.