You are not very far along into the system, and you should not be panicking yet. Yes, they always mention fraud,etc., in each and every communication. They want you to answer the questions carefully and truthfully, and they do, eventually try to shake out the truth of the situation as to why you are out of work. "Lack of work" is what is called a "clean claim" which means, they let you go, it was their decision, due to something that was not your fault, for example, they are cutting staff and no longer had a position for you. In this scenario, since they are the driver, they would not contest your claim. (By the way, in many cases, especially those big box sales places, they do not ever personally contest any claims. Their claims are dealt with by a consulting firm, which would contest any claim in which a person says they are laid off due to lack of work after the employer has terminated them due to "lack of good fit" or whatever)
If you were a floater, and you were let go because they no longer needed you, they certainly should have told you that. If you were let go because you were "not a good fit" that is the answer you should have given the unemployment system, regardless of how many ways you read and felt like you could interpret what it said on the claims form. It was either lack of work or it wasn't. They told you that, or in most cases, will give you a separation notice that says that if you are truly being downsized due to lack of work.
Either way, there is an extended process that will happen before it is determined if you committed fraud, have money to pay back, penalties to suffer for receiving this money fraudulently, etc. The problem with putting down "lack of work" as the reason for termination is that sometimes this results in your beginning to receive payments on a claim to which you are not entitled. This gets you overpaid. Since you were overpaid because of misinformation you supplied to the unemployment claims system, you will not only end up having to pay the money back, you'll end up with penalties, which means you will owe back more than you have received.
First of all, remember, no claim is needs based. How much you needed the money will have nothing to do with whether or not you are asked to pay the money back, are penalized, etc. It is doubtful if you cooperate with the appeals process and go through all the steps, that you would ever end up being prosecuted in civil court. They do not prosecute every case in which someone has been determined to have committed unemployment fraud, as this would be the only crime they'd ever have time and court facilities to prosecute if they did it.
In order to receive unemployment benefits, you must be out of work THROUGH NO FAULT OF YOUR OWN. The reason you chose to use when you filed your original claim may not have been accurate. But it is important that you separate these two issues, the reason you chose to mark on the initial claim you filed, and the reason you were actually separated from your employer, as the unemployment system will.
What will happen is that your money has stopped. You will get no more benefits until there are some decisions made concerning your claim. But you keep making the weekly certifications for benefits while you are in the claims investigation and appeals process.
If it were to turn out that you are approved, they'd probably do some penalties and adjustments, based on your reporting an incorrect (fraudulent)reason for separation initially, but you may turn out with an approveable claim in the long run.
They will begin to investigate the actual reason why you were let go from your job. It sounds as though "not a good fit" is the employer's euphemism for something they had a problem with related to your job performance. What is this? Are you telling us you don't know? You are trying to say you have not got a clue? Truly? Have you ever had any warnings, any write ups, ever been giving any verbal or written indications that there was SOMETHING about your performance that you needed to correct?
If you're really this blameless, you've been left so totally in the dark about your work performance and whether or not it was pleasing to the employer, and you then were called in and told you were being let go because you were "not a good fit" then you would have a pretty good chance of being able to ultimately collect benefits, even though you falsified the original reason for separation.
In order to let go an employee and keep them from receiving unemployment benefits, the employer should be able to show that they made the employee aware of problems, that the employee was given an opportunity to correct said problems, and that the employee did not do so, thus forfeiting the job.
This is the issue they'll determine first. There will be an "initial decision" made, based on what you tell the unemployment system at this point, and what the employer tells them. If you'd put any sort of "let go for cause" answer on your initial claim, they'd have already gone through this.
Instead of no questions asked, they'd have asked you a bunch. They would have been related to did you receive warnings, did you have any write ups, what was said on the very last day you worked, all questions designed to home in on the issue of whether or not you had control of your job performance or whatever you were doing that the employer did not like and wanted to let you go over.
After the initial decision, there'll be a chance to appeal for the side that does not prevail. Usually the big box stores and those who hire contractors to handle their unemployment will appeal each and every one of these claims, so even if you are approved, they'll appeal, so don't take this personally. There will be another hearing, this time with the store's representative, and with you and the appeals officer. Second appeal decisions are made here.
Even if you are approved, then we get around to the second issue, your possible fraudulent filing. Though usually in situations where a person is initially approved, receives some money from unemployment, and then later is determined not eligible in the second decision, it is considered a 'non fraud' overpayment, and is not pursued quite as vigorously, this one, based on your little "lack of work" glitch, may incur a fraud overpayment, which means more emphasis on getting that money repaid, possibly with penalties.
If you are determined to be overpaid, in other words, they discover that you have been terminated for a valid misconduct reason, that you were given warnings which you failed to heed, and then terminated, you'll be found ineligible, and you will be found to have been overpaid any monies you did receive. In most cases, if a person is first approved and then denied, they're overpaid, but not fraudulently overpaid. They have to pay the money back, but without penalties.
Because you received this money after fraudulently informing the system that you were laid off through no fault of your own, you'll very likely also be charged penalties in addition to owing just the basic money back.
Yes, as I've often said, there is never a downside to filing a claim for unemployment benefits, even if you're fired for the best reason in the world and you know it. The downside is if you file and lie about the reason why you are no longer working at the company, and get yourself overpaid before the company finds out you've done it and protests.
This is what gets you penalties. Don't worry about going to jail or something like that, you're far from there. But it is entirely possible you'll be repaying this money with penalties if you lose all the appeals and are determined ineligible. They won't put you in debtor's prison or anything if you just don't have the money to repay this, but they will keep dibs in on your future earnings, your future unemployment benefits, and your future tax returns until the money is repaid.
But go on, finish out the whole appeals process. There's a change you'll get approved, and you may be able to take care of this situation with the unemployment benefits you get to draw after the dust all settles.
