28-03-2025
Audit finds Colorado Department of Labor over-collected millions of dollars from employers
Colorado employers paid $5 million more than they owed in unemployment insurance last year, according to a newly released audit.
The Office of the State Auditor says a programming error in the Department of Labor and Employment's MyUI+ system -- the system for unemployment benefits in the state -- led to some employers overpaying and others underpaying.
Up to 30,000 employers were impacted.
The audit also found that 4,100 employers who should have been paying into the Family and Medical Leave Insurance -- or FAMLI -- Program, have not made payments, while others who were exempt from the program paid $127 million.
The Labor Department refunded the money, but the audit found it failed to account for the refunds on its books.
"Fundamentally, what we have here -- between these two programs -- is a system that breeds a lack of trust," said Republican State Sen. Lisa Frizell, vice chair of the state's Legislative Audit Committee. "This is a system that is problematic for employers, it's problematic for those who pay into FAMLI. We need systems in the State of Colorado that citizens and businesses can trust and unfortunately in these two situations we have neither."
The Colorado Department of Labor released a statement saying it takes the findings seriously and is addressing the issues identified in the audit. It says it has also identified affected employers and will be crediting them for overpayments or billing them for underpayments.
