New York overpaid some unemployment recipients, who may have to pay it back

New York overpaid some unemployment recipients, who may have to pay it back

The state’s Labor Department says it accidentally overpaid some people unemployment insurance a year ago and now those people are being notified they must pay it back.

“In April and May of 2020, a small portion of claimants received duplicate payments as NYS DOL worked to get New Yorkers their benefits as quickly as possible,” the department posted on social media late Friday. “Under federal law, NYS DOL is required to recover any overpaid funds.”

There is a way to ask for forgiveness, so that you don’t have to repay the overpayment.

First, if you did receive extra money, you’ll receive notification in a letter, according to the department. That letter will also include instructions on requesting an appeal or waiver that would forgive the overpayment.

Additionally, some people may receive a waiver form through email to sign using a DocuSign form, according to the department.

Finally, anyone who did get an overpayment and wants to apply online for a waiver can, starting at noon on Friday, April 23. Check this website for details.

There is no deadline to request a waiver, according to the Labor Department. But waivers not filed within 30 days of the date on the letter will see 20% of their benefit reduced to go toward repayment. Anyone who applies for a waiver within 30 days will not see their benefits reduced until a decision is made, according to the department.

What is a Waiver Request?

A waiver request is a request to be forgiven for an overpayment of benefits because of a financial hardship. Certain federal programs permit claimants who have received an overpayment of benefits to apply for a waiver from repayment if:

1. The claimant was not at fault for the overpayment; and
2. Recovery of the overpayment would be contrary to equity and good conscience.

What is “Contrary to Equity and Good Conscience”?

When determining if repayment of the overpayment would be “contrary to equity and good conscience,” the primary consideration is whether repayment of the overpayment will cause the claimant extraordinary financial hardship, such as an inability to pay for shelter, food, and/or medicine.

Determining Fault

When determining if the claimant was at fault for the overpayment, the following factors are considered:

1. Whether or not the claimant made a material statement or representation on the application for benefits that resulted in the overpayment and that the claimant knew, or should have known, was false;
2. Whether or not the claimant failed, or caused another person to fail, to disclose a material fact in connection with the application for benefits that resulted in the overpayment and the claimant knows, or should have known, was material;
3. Whether or not the claimant knew, or could have been expected to know, that they were not entitled to the payment of benefits;
4. Whether or not the overpayment resulted directly or indirectly from an action or omission by the claimant which was known and was erroneous, inaccurate, or otherwise wrong; and
5. Whether or not there was a determination of fraud associated with the payment of benefits.

How to Apply for a Waiver

You may receive a DocuSign email with a waiver request application. If you do not receive the DocuSign waiver request, you can request one beginning Friday, April 23 at 12:00 p.m.

Federal programs that permit claimants to apply for a waiver from repayment include:

1. Federal Pandemic Unemployment Compensation (FPUC);
2. Pandemic Emergency Unemployment Compensation (PEUC); 
3. Pandemic Unemployment Assistance (PUA);
4. Lost Wages Assistance;
5. Mixed Earners Unemployment Compensation; and
6. 2008 Emergency Unemployment Compensation (EUC08).