Why are thousands of people on unemployment being told to pay back?

Tens of millions of people have been on unemployment at some point in the last seven months, since the pandemic began. Now, thousands are being told they have to pay some or all of that money back, either because they made an error when they applied for benefits, or the state did.

What happens if you get overpaid for unemployment benefits?

With traditional unemployment insurance benefits and with Federal Pandemic Unemployment Compensation, if someone has been overpaid, states have the discretion to waive repayment, as long as there was no fraud involved — particularly if repayment would cause financial hardship.

What happens if you don’t win an appeal for unemployment?

But for people who do not win on appeal, or do not get a repayment waiver, states can find ways to recoup that money. Some are more aggressive than others, according to Evermore. “Every state has different recoupment authority,” she said. “In some states, other benefits can be garnished to pay for that.

What if I’m having trouble getting unemployment benefits?

If you’re having trouble getting unemployment benefits, contact your state senator, representative, or even governor. They could help move things along.

How long does it take to get back paid unemployment benefits?

This includes backdated payments for weeks you were eligible. In most states backdated PUA and FPUC payments will be paid in one lump-sum one to two weeks after you receive your first payment of eligible state UI benefits. How to File for Unemployment Benefits Back Payments

Do you have to pay back unemployment benefits to New York?

Meg Patrick of Montclair said she’s been told to repay nearly $11,000 in unemployment benefits to New York. The state said she should have been receiving benefits from New Jersey. If you’re wrongly paid unemployment benefits — whether it’s your fault or not — you have to pay the money back.

What happens if you are wrongfully paid unemployment benefits?

If you’re wrongly paid unemployment benefits — whether it’s your fault or not — you have to pay the money back. Even if you did everything correctly and followed the guidance of a state’s Department of Labor, you’re on the hook for the money if the state determines you were not eligible for benefits.