BILL NUMBER: S2025
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the labor law, in relation to waiving repayment of unem-
ployment pandemic benefits under certain circumstances
 
PURPOSE:
To provide financial relief from the need to repay certain overpayment
of unemployment benefits that were received through no fault of the
claimant.
 
SUMMARY OF PROVISIONS:
Section one of the bill adds a new section, 597-a, to the labor law to
provide the Commissioner of Labor the authority to waive certain unem-
ployment benefit overpayments. This section requires that the Commis-
sioner of Labor assess and approve blanket waivers for all claimants who
received overpayments who are eligible pursuant to Federal rules regard-
ing UPB overpayments. For those ineligible under the current rules
outlined by the Federal Department of Labor, the Commissioner would be
required to apply for categorical waivers to ensure that those who erro-
neously received benefits through non-fraudulent activity that was
through no fault of the claimant to have their overpayments waived.
Lastly, section one of this bill requires that the Department of Labor
approve all waivers not included under the blanket waiver where the
applicant received benefits through no fault of their own and recovery
would be contrary to equity and good conscience.
Section two of the bill provides a definition for willful for the
Department of Labor's evaluation of willful false statements made by
claimants.
Section three provides for an immediate effective date and shall apply
to all pandemic unemployment repayments assessed on or after March 27,
2020.
 
JUSTIFICATION:
As New Yorkers continue to navigate the economic crisis brought on by
COVID19 and the resulting high levels of unemployment, several benefici-
aries are being notified by the Department of Labor that they were over-
paid and would need to repay some of their benefits to the Department of
Labor. These claimants received such payments through no fraud or fault
on their part, and were unaware that they were not entitled to receive
the benefits that they had. These people have already spent their unem-
ployment payments to pay rent, pay utility bills, and to purchase food
for their families. These claimants are now being asked by the Depart-
ment to return some of the benefits they received, with some New Yorkers
owing more than $10,000.
The Federal Government passed legislation in December of 2020 to provide
every State with the authority to waive benefit overpayment amounts.
This legislation would require that the Department of Labor waive these
repayments for certain claimants, and provide financial relief to thou-
sands of New Yorkers who through no fault of their own owe the State
money for overpayments made by the Department of Labor.
 
LEGISLATIVE HISTORY:
2023-24: S.1245/A.8930 - Referred to Labor
2021-22: S.6244b/A.7511A Passed Senate
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S2025: 597 labor law, 597(4) labor law