NC S828

Extends the three-year lookback trigger for extended unemployment benefits from January 1, 2012 to January 1, 2013, allowing extended benefits to continue under the Tax Relief Act of 2010 if certain unemployment thresholds are met.

Redefines "misconduct connected with the work" for disqualification from unemployment benefits to include specific examples such as violating drug policies, theft, violence, falsifying employment documents, and violation of absenteeism policies, effective November 1, 2012.

Reduces employer protest period for unemployment claims from 30 days to 10 days from delivery of notice and establishes a 45-day limitation period for the Division to raise eligibility or disqualification issues.

Increases penalties for unemployment insurance fraud to Class I felony for benefits exceeding $400 and Class 1 misdemeanor for $400 or less, and establishes a mandatory 15% penalty on fraudulent overpayments effective October 1, 2013.

Requires the Division of Employment Security to participate in the federal Treasury Offset Program for collecting unemployment compensation debts by January 1, 2013, with implementation progress reports required by September 1, 2012, November 1, 2012, and January 1, 2013.