Vermont unemployment fraud has two very different readers: the person who just got a letter or a 1099-G for a claim they never filed, and the claimant who wants to know what the state counts as fraud and what it costs.
This guide covers both — how to report Vermont unemployment fraud, the identity-theft steps, how to get a corrected 1099-G, what counts as claimant fraud, the penalties and disqualification, and when it becomes a criminal case. Verified against Vermont Department of Labor as of October 2026.
Vermont Unemployment Fraud at a Glance
| Report fraud | https://labor.vermont.gov/form/report-ui-fraud |
| Hotline | 802-828-4104 (UI Fraud Tip Line). You can also email [email protected]. |
| Penalty | Under 21 V.S.A. § 1347(c), a person found to have intentionally misrepresented or hidden an important fact must repay the overpaid benefits… |
| Disqualification | Under 21 V.S.A. § 1347(e), the Commissioner sets a disqualification of up to 26 weeks, and the written determination… |
In This Vermont Unemployment Fraud Guide:
How to Report Vermont Unemployment Fraud
Report it at https://labor.vermont.gov/form/report-ui-fraud or call 802-828-4104 (UI Fraud Tip Line). You can also email [email protected].. Reports can be made anonymously; the agency investigates both claimant and employer fraud.
Vermont Unemployment Fraud in Your Name: If Someone Else Filed
- Report the claim to the Vermont Department of Labor UI Fraud Team online, by email or by phone at 802-828-4104
- File a report with the Federal Trade Commission at identitytheft.gov
- File a police report
- Close any accounts that were tampered with or opened without your permission
- Get a free credit report at annualcreditreport.com and think about a credit freeze
Getting a Corrected 1099-G
If you got a 1099-G but did not file for or receive benefits that year, the state asks you to report it to the fraud unit through the “Request 1099-G Tax Documents” page under Claimant Tax Form Information on labor.vermont.gov. A fraud team member then contacts you and looks into the claim. The department says it cannot share tax form information over the phone.
The state says victims are not held liable for claims made with stolen information.
What Counts as Vermont Unemployment Fraud by a Claimant
Vermont generally treats it as fraud when someone intentionally gives false information or hides an important fact to get benefits or raise the amount (21 V.S.A. § 1347 and § 1368). Most commonly that means not reporting earnings or work while claiming, giving false work-search reports, or giving a false reason for leaving a job. What matters is intent, so confirm specifics with the state agency.
Vermont Unemployment Fraud Penalties and Disqualification
Under 21 V.S.A. § 1347(c), a person found to have intentionally misrepresented or hidden an important fact must repay the overpaid benefits plus a penalty of 15 percent of the overpaid amount. The Commissioner can collect it through a civil action in Superior Court. Penalty weeks are set separately under § 1347(e), up to 26 weeks.
Under 21 V.S.A. § 1347(e), the Commissioner sets a disqualification of up to 26 weeks, and the written determination must state how long it lasts. This applies when the person is not prosecuted under § 1368 and not charged the § 1373 penalty. A 2021 legislative study committee report says the statute gives the Commissioner no authority to waive or reduce this period.
When Vermont Unemployment Fraud Becomes a Criminal Case
Large or repeated fraud can be referred for prosecution; the amount that turns a civil penalty into a criminal charge is set by state law.
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Employer-Side Vermont Unemployment Fraud
Employer-side fraud in Vermont includes treating employees as independent contractors (misclassification) to avoid paying unemployment contributions, and making false statements to avoid contributions. The second can bring an administrative penalty of up to 5000 under 21 V.S.A. § 1369. Workers who think they have been misclassified can report it to the Vermont Department of Labor, which can enforce the law or refer the case to the Attorney General.
Honest Mistakes Are Not Vermont Unemployment Fraud
Fraud requires intent. A good-faith reporting error usually leads to an overpayment you have to repay, but without the 15 percent fraud penalty or penalty weeks. Under 21 V.S.A. § 1347(f), the Commissioner may waive an overpayment that was not your fault when collecting it would be unfair. To fix a weekly claim, most claimants contact the Claimant Assistance Line at 1-877-214-3332 as soon as they notice the error.
Vermont’s online statutes show a version of § 1347(d) that takes effect on July 1, 2026 or on an earlier contingency, whichever comes first. A 2026 bill, H.871, would also strengthen the penalties for false statements, including possible ineligibility for up to 5 years. Whether either is now in force could not be confirmed, so confirm with the state agency.
Related: if the state says you were overpaid on your own claim, that is a different process — see the Vermont overpayment guide for waivers, repayment plans and the appeal deadline.
Vermont — the bottom line
- Report Vermont unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- Vermont unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for Vermont unemployment fraud stack: repayment, a monetary penalty, penalty weeks, and in large cases a criminal referral.
Frequently Asked Questions
How do I report unemployment fraud in Vermont?
Use the state fraud page (https://labor.vermont.gov/form/report-ui-fraud) or call 802-828-4104 (UI Fraud Tip Line). You can also email [email protected]..
Someone filed for unemployment in my name in Vermont — what do I do?
Report the claim to the Vermont Department of Labor UI Fraud Team online, by email or by phone at 802-828-4104; File a report with the Federal Trade Commission at identitytheft.gov; File a police report; Close any accounts that were tampered with or opened without your permission; Get a free credit report at annualcreditreport.com and think about a credit freeze
What is the penalty for unemployment fraud in Vermont?
Under 21 V.S.A. § 1347(c), a person found to have intentionally misrepresented or hidden an important fact must repay the overpaid benefits plus a penalty of 15 percent of the overpaid amount. The Commissioner can collect it through a civil action in Superior Court.
Is an honest mistake on a weekly claim fraud in Vermont?
Fraud requires intent. A good-faith reporting error usually leads to an overpayment you have to repay, but without the 15 percent fraud penalty or penalty weeks.
Official Vermont Sources & Resources
- Vermont Department of Labor: https://labor.vermont.gov/unemployment-insurance
- Report unemployment fraud in Vermont: https://labor.vermont.gov/form/report-ui-fraud
- Vermont unemployment statute: 21 V.S.A. ch. 17
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This Vermont unemployment fraud guide was last verified against official Vermont sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Vermont Unemployment Guides
- Vermont Unemployment Overpayment: Waivers and Repayment
- Vermont Unemployment Appeal: Deadline and Hearing
- Vermont Unemployment Benefits: How Much and How Long
- Unemployment Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Unemployment benefit amounts, deadlines and rules change — every figure here carries the date we verified it. Confirm the current figure and any deadline with your state unemployment agency before you act.