#1 Shock! Some unemployed jobseekers trying to double dip12-09-2010, 12:47 PMSome unemployed jobseekers trying to double dip
written by: Jeffrey Wolf Eric Kahnert 15 hrs ago
DENVER - He's got jobs to fill, yet one local employer says many applicants will only take the work if the pay is in cash. That cash, he says, would be paid under the table so the worker can continue to collect unemployment benefits.
A few local industrial companies are starting to see more potential employees trying to cheat the system.
Ed Sleeman, owner of Colorado Drywall Supply, posted two new jobs eight months ago.
Dozens of applications later, Sleeman still can't find two qualified truck drivers willing to load and unload building supplies, despite Colorado's 8.4 percent unemployment rate.
And it's not that all of the jobseekers have been unqualified.
Sleeman says about 40 of the applicants have admitted they're unemployed, and are hoping to double dip.
"They'll come in and say, 'Well, I'd look at the job but if you could pay me cash I'd take the job so I could keep my unemployment,'" Sleeman said.
Sleeman says he isn't the type of business owner to pay under the table.
"There's no way we would do that," he said.
Sleeman says he's aware double dippers have been approaching other businesses in the industrial sector.
What's worse, he says, he's heard of companies willing to pay under the table to avoid extra costs, like health benefits
"I've had other people say that that they question, maybe their competitors are doing things similar to that, paying cash," Sleeman said.
Sleeman didn't think it'd ever be this tough to fill the two jobs in this economy.
At $10 and $15 an hour, more with experience, the jobs come with benefits, but Sleeman says, apparently that's not enough for some people without jobs.
"People don't want to seem to want to work if they're already getting paid," Sleeman said.
12-09-2010, 01:06 PM
WeeWee and Wilbur, your thoughts?The Obama Administration: Deny. Deflect. Blame.
12-09-2010, 02:55 PM
I have an uncle who was injured on his last job, and now gets SSI for his "disability", and will get it for the rest of his life. He works odd jobs for cash, and never reports the money to SSA. Although it's not unemployment, it's a similar concept and a similar combination of laziness/greed.
My uncle is not really disabled at this point, but no one will ever question the issue and make him get back to work. Grandpa (his dad) offered to give him money to go back to school and learn a trade that doesn't involve physical labor, and he refused.
He used to be a very motivated worker, and was always proud that despite the fact that he was born deaf, he still had a job and paid his own way. Now, he's a slacker whose kids have grown up to be slackers. One still lives at home, is the father of a 2 year old, and works at a car wash officially, but is an ecstasy and pot dealer. I'm still holding out hope for the other kid, who at least has a decent job and got an apartment with his friends.
12-09-2010, 03:12 PM
The problem is that unemployment pays based on how much you made at your last job. So if you had a job paying $450 week, and you get laid off, unemployment benefits will try to match that, say they can match $360 a week.
So say you're now getting around $360 a week from unemployment benefits, just enough to keep paying your mortgage, car payments, food, children's clothes and so on.
Now, this person is offered a job that pays $200 a week. If he takes this job, he loses unemployment benefits, and he's cutting his income nearly in half, and may not be able to pay his bills for his family. So instead, they try to work and make money but avoid losing their unemployment benefits because it is simply financially smarter in purely practical terms.
It's cheating the system, no doubt, but people are going to try to make the best decisions for their family with the information they have a available, and if getting a low-skill low-pay job means you lose half of your income some people will try to get around that.
I've always been critical of how unemployment benefits pay out.Originally Posted by Adam Smith - Wealth of Nations
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