Massachusetts: 5 Things Employers May Not (But Should) Know About MA Unemployment

By Kayla E. Snider - Skoler, Abbott & Presser

March 18, 2025

When employees leave or lose their jobs, there is a good chance they will file a claim for unemployment benefits with the Massachusetts Department of Unemployment Assistance (the “DUA”).  During the unemployment claims process, employers often receive requests for information from the DUA to ensure their former employee is eligible for unemployment benefits and the amount of their benefit is determined accurately. While many employers are familiar with this process, there are several aspects of the Massachusetts unemployment law employers may not be aware of, and failing to abide by them can have serious consequences for your business.

1. The Commissioner Can Inspect Your Records at Any Time

What You Probably Already Know – Employers are required to maintain accurate records of all their employees, including details about wages, hours worked, dates of employment, and whether the individual is currently employed. (See M.G.L. c. 151, § 15; 430 C.M.R. 5.00; and M.G.L. c. 149, § 52C). This information is provided to the DUA on a quarterly basis so that your contribution rate can be calculated correctly. Maintenance of these records also helps the DUA accurately calculate unemployment benefits for former employees who submit unemployment claims.

What You May Not Know – The Commissioner of Labor and Workforce Development has the right to inspect your records at any reasonable time to ensure that you are in compliance with the unemployment laws. (See M.G.L. c. 151A, § 45). This means that even if your employment and wage detail report is not due, the Commissioner can ask to see copies of your records. The Commissioner can also require that you verify, under oath, that all of the information in your records is accurate. If you fail to maintain these records or your records are inaccurate, you will be subject to up to a $100 fine for your first offense. Then, if you are found in violation again, within two (2) years of your first offense, you will be subject to imprisonment for up to 2 years, a fine of up to $500, or both. (See M.G.L. c. 151A, § 47).

2. An “Inadequate” Response Can Result in Liability for Benefits Payments

What You Probably Already Know – Employers are required to provide all pertinent information when they receive notification of an unemployment claim. This includes filling out the questionnaire from the DUA in your online portal and submitting any supporting or additional documentation to the DUA.

What You May Not Know – The information you submit to the DUA can be deemed “inadequate” if it does not give the DUA enough information to make the correct determination of the employee’s eligibility for unemployment benefits. (See M.G.L. c. 151A, § 38A).  If the DUA determines that your response to an unemployment claim was inadequate and resulted in an award of unemployment benefits to someone who should not have received them, then you are liable for whatever payments the DUA made to your former employee, which can increase your utilization. However, if the DUA failed to ask for all necessary information and then makes an incorrect determination about a former employee’s eligibility for benefits, or the amount of their benefits, the DUA cannot deem your response “inadequate.”

3. Various Consequences for Failure to Respond to an Unemployment Claim

What You Probably Already Know – Employers have to respond to the DUA within 10 days after they receive notice that a former employee has filed an unemployment claim.  

What You May Not Know – Employers are required to respond to unemployment claims within 10 days and, as noted above, and the information they provide to the DUA must be adequate.  But that’s not all.  Employers are also responsible for alerting the DUA to any misrepresentations in their former employee’s claim and any other reasons why the claim should be denied.  This includes providing the DUA with any other relevant information or documents you may have that relate to the claim.  (See M.G.L. c. 151A, § 38(b)).

Failing to comply with these rules can:

• Bar you from participating in the proceeding as a party.
• Prohibit you from being able to appeal the DUA’s decision.
• Make you liable for any benefits paid to your former employee if the DUA approved their unemployment claim when it should not have.

4. Retaliation is Presumed if You Alter an Employee’s Employment Within 6 Months

What You Probably Already Know – Employers are not allowed to retaliate against an employee for providing information to the DUA in connection with a claim for unemployment benefits. As part of the process for making their determination, the DUA may ask current employees for information about a former colleague’s unemployment claim. Providing this information to the DUA is considered a protected activity and employers cannot take adverse action against an employee who does so.  

What You May Not Know – If an employee is terminated or there is an adverse action taken against them within six (6) months after they provided evidence to the DUA, then there is a rebuttable presumption that the employer retaliated against the employee. This means that a judge or jury must automatically presume that the action taken against the employee was taken in retaliation for their decision to provide evidence to the DUA.  You can rebut this presumption, but only by providing clear and convincing evidence that your decision was not retaliatory. This puts you at a disadvantage if an employee sues you for retaliation. So, as always, it is important to make sure that you have documentation that identifies the legitimate, non-retaliatory reasons for any adverse action you take against an employee.

5. The Unemployment Laws Allow for Punishment by Both Imprisonment and Fines

What You Probably Already Know – Employers should not make any false or misleading statements, representations, or submissions to the DUA. Doing so impedes the DUA’s ability to properly carry out its job and can result in punishment for the employer and/or the person(s) responsible.  (See M.G.L. c. 151A, § 47).

What You May Not Know – The punishments for intentionally deceiving the DUA can be steep. For starters, any individual who intentionally fails to disclose a material fact so that an ex-employee can obtain, maintain, or increase their unemployment benefits is subject to imprisonment for up to 5 years, a fine of up to $10,000, or both.

Any employer, or any officer or agent of an employer, who voluntarily and intentionally attempts to evade contribution to unemployment or makes a false statement or misrepresentation to evade or reduce any contribution, payment, interest charge, or benefit is guilty of a felony and subject to a fine of up to $50,000, imprisonment for up to 5 years, or both.

And, finally, any employer, or any officer or agent of an employer, who intentionally fails or refuses to furnish any information required by the DUA, or attempts to threaten or coerce any person to waive their rights to unemployment benefits, is subject to a fine of up to $10,000, imprisonment for up to 1 year, or both.

Takeaways

The unemployment laws in Massachusetts are not as simple as many employers may think. It is important to stay vigilant to ensure consistent compliance with employers’ recordkeeping and disclosure obligations under those laws.  Ignoring or mishandling requests for information from the DUA can have serious financial and legal consequences. By staying informed and proactive, employers can avoid costly mistakes, ensure they are meeting their obligations under Massachusetts law and avoid unexpected liability.

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