FUNKE FROMMEYER COMBATS
UNEMPLOYMENT INSURANCE FRAUD
SB 162 passes out of the Senate
FRANKFORT, KY (March 7, 2025) – Senate Bill 162, sponsored by Senator Shelley Funke Frommeyer, R-Alexandria, passed out of the Senate late yesterday. SB 162 will combat unemployment insurance (UI) fraud with the introduction of a mandated automatic referral of suspected fraud cases to law enforcement.
“Kentucky’s UI system has been blatantly abused, draining resources and eroding public trust,” said Funke Frommeyer. “During the pandemic, 19 state employees—including some from the Office of Unemployment Insurance itself—collected benefits while still on the state payroll. Yet, only one was fired, and none faced prosecution. Senate Bill 162 is our chance to fix this failure and restore integrity to the system.”
SB 162 establishes a clear and automatic process for referring UI fraud cases to the appropriate authorities, ensuring that fraudulent activity is met with appropriate legal consequences. Under the bill, the Kentucky Education and Labor Cabinet will be required to refer suspected fraud cases to either the U.S. Department of Justice, the Kentucky Justice and Public Safety Cabinet, or the County or Commonwealth’s attorneys, when applicable.
The bill also ensures that prosecutors and law enforcement agencies receive complete case information to effectively evaluate and pursue charges.
“Public service is a privilege, not a loophole to be leveraged,” said Funke Frommeyer. “SB162 enforces zero tolerance for state employees who commit UI fraud—mandating immediate termination, criminal prosecution when necessary, and full repayment of stolen benefits.”
This legislation is a critical step in restoring confidence in Kentucky’s unemployment insurance system.
“The people of Kentucky deserve a government that operates with honesty and accountability,” said Funke Frommeyer. “This legislation ensures that fraud within our unemployment system is met with swift and serious consequences. We are sending a clear message: misuse of public funds will not be tolerated.”
SB 162 is now eligible to be heard by the Kentucky State House of Representatives.
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Sen. Shelley Funke Frommeyer, R-Alexandria, represents the 24th Senate District, including Bracken, Campbell, and Pendleton Counties and part of Kenton County. Frommeyer serves as vice chair of the Senate Economic Development, Tourism, and Labor Committee and co-chair of the Budget Review Subcommittee on Justice and Judiciary. She is also a member of the Legislative Research Commission 2024-26 Budget Preparation and Submission, and Senate Committees on Appropriations and Revenue, Agriculture; and Families and Children. Additionally, Frommeyer is co-chair of Capital Projects and Bond Oversight, and Public Pension Oversight Board and Workforce Attraction and Retention Task Force member.
Visit https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate124.jpg for a high-resolution .jpeg of Funke Frommeyer.
