An unknown number of New Yorkers receiving unemployment benefits may have to repay some of the money to the state after being overpaid a year ago.
The state Department of Labor said a ‘small’ number of people would receive double payments in April and May 2020, as the state’s unemployment system was destroyed due to the benefit applications filed by hundreds of thousands of newly unemployed individuals during COVID-19 pandemic has been filed.
Upper West Side resident Bryn Taylor is among those who may be forced to return the cash.
The 40-year-old freelance fashion stylist received an email from the Department of Labor on Friday saying she had an “overpayment” on her account, with more details expected to appear in a letter, according to an email alert shared with Gothamist.
“When I read that it was an overpayment, I initially felt incredibly confused because I thought, ‘Oh, did I miss something?’,” Taylor told Gothamist / WNYC. “I actually felt a little offended.”
The freelance fashion stylist had to stop working a year ago because her work required visits to customers and shopping trips. She qualifies for the benefits through a federal program that extends unemployment benefits to unemployed freelancers – calling Taylor an ‘absolute lifesaver’.
“We were very patient as recipients of this unemployment in the early days,” she added. “I have been closely monitoring my unemployment payments since I submitted.”
Now Taylor will try to apply for a waiver so she does not have to repay the state.
In April and May 2020, a small portion of plaintiffs received double payments as NYS DOL worked to get New Yorkers their benefits as quickly as possible.
Under federal law, NYS DOL is obligated to recover any overpaid funds.
MORE.
– NYS Department of Labor (@NYSLabor) 16 April 2021
The state Labor Department said on Twitter that according to federal law, “it is necessary to recover any overpaid funds”. Anyone who has been overpaid will receive a letter with more information, as well as information on how to file a waiver to forgive the overpayment. The department said those affected could apply for a waiver on April 23 at 12:00 p.m.
Without waiver, unemployment benefits will be reduced by 20% until the overpaid funds are returned.
Taylor said many unemployed people suspect that it initially paid out $ 600 to New Yorkers in a hurry to pay out the benefits to those forced to stop working to stay safe from coronavirus.
“If that is what it is for me, it would be paid to us because it was the department’s fault that there was such a delay between our application and its acceptance,” Taylor said. “So it did not feel like it was a favor or a handout.”
At a news conference on April 8, 2020, Governor Andrew Cuomo said that anyone who applied for unemployment would receive an additional, immediate $ 600 payment that the state would reimburse for the federal government. “People need money in their pockets now, so New York will do it right away,” Cuomo said at the time.
The Department of Labor said the overpayments came from the Federal Pandemic Program for Unemployment Compensation. People who have been notified of the overpayments can, within thirty days of receiving a paper letter by post, file an appeal or waiver, detailing how to file one. If they submit, their benefits will not be reduced until a final decision is made. The department did not immediately specify how the overpayments took place. It also did not immediately respond to questions about how many people have been affected or how many unemployed New Yorkers will have to return.
This article has been updated with additional information from the Department of Labor.