Feds fault Ind. unemployment actions

By: The Associated Press
By: The Associated Press

The U.S. Department of Labor says Indiana's unemployment agency broke federal rules in writing and awarding contracts, including a rushed $7 million deal with Ivy Tech Community College last June that it says must be canceled immediately.

A labor department report also says the Indiana Department of Workforce Development miscalculated jobless benefits at a rate five times the national average.

The March 9 report obtained by The Associated Press says the state agency might be contributing to the insolvency of the state's unemployment insurance fund by ignoring a federal mandate to check a national database for newly hired workers.

A Workforce Development spokesman says the agency is reviewing the report and has begun implementing some suggested improvements.

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