The Department of Labor could owe you money: who is entitled to payments

Workers who have been asked to return unemployment benefits given to them in error during the COVID-19 pandemic can get their money back. How is this possible, said the publication CNBC.

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However, according to a memo released by the US Department of Labor, it could take states up to a year to get the money back.

Since spring 2020, states have been trying to recover unemployment benefits they mistakenly paid hundreds of thousands of Americans.

Many received money through the new federal pandemic unemployment assistance program created under the CARES Act to expand assistance to a wider range of people who would normally not be eligible for benefits.

States rushed to pay benefits amid a flood of claims, only later realizing that some had been paid out in error, due to errors by both claimants and unemployment agencies.

On the subject: $ 300 federal unemployment benefit supplement: who gets it, when and how long

However, CARES did not offer states the ability to forgive overpayments. Basically, this meant that the states had to try to get the funds back.

Texas, for example, sent out notices to approximately 260 recipients between March 000 and October 1 and attempted to return $ 1 million.

A $ 900 billion bailout bill passed in December allowed states to forgive Americans for overpayment of benefits.

Now, according to the US Department of Labor, states that agree to this forgiveness must return money to workers who paid some or all of their benefits prior to receiving the forgiveness.

“States may take some time, up to approximately a year, to process such returns and States are encouraged to contact the Department for technical assistance,” the guidance issued Wednesday, May 5, said.

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States can forgive overpayments if the employee is not at fault, or, for example, refunds can cause financial hardship.

Otherwise, states have many ways to claim benefits that are considered overpaid. For example, they can reduce current benefits, receive tax refunds, intercept lottery winnings, and sue individuals to recover aid.

“In many cases, people received benefits that they may not have been entitled to through no fault of their own,” said Susie Levin, deputy assistant commissioner for the Department of Workforce Development. “The guidance issued by the U.S. Department of Labor will help states address this important issue by giving them greater flexibility to refuse to collect improper payments from honest workers.”

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