NY State Senate Bill 2023-S549

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2024	print number 549c
Jun 03, 2024	amend and recommit to finance
May 21, 2024	reported and committed to finance
May 15, 2024	print number 549b
May 15, 2024	amend and recommit to labor
Jan 03, 2024	referred to labor
May 09, 2023	print number 549a
May 09, 2023	amend (t) and recommit to labor
Jan 05, 2023	referred to labor

2023-S549 - Details

See Assembly Version of this Bill:: A3647
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Add §594-a, rpld §597 sub 4, Lab L
Versions Introduced in 2021-2022 Legislative Session:: S6169, A6666

2023-S549 - Summary

Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

2023-S549 - Sponsor Memo

                                 
BILL NUMBER: S549

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the labor law, in relation to the recovery of overpay-
ments of unemployment benefits; and to repeal certain provisions of such
law relating thereto

 
PURPOSE:

The purpose of this bill is to require the Commissioner of Labor to
waive certain overpayments of unemployment benefits that have occurred
during the COVID-19 pandemic, in addition to certain overpayments going
forward.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would establish that a claimant shall not be
held liable for overpayments of state or federal unemployment benefits,
as permitted under federal law, provided that the overpayment was not
due to fraud or fault on the part of the claimant and the recovery of

such overpayment would be against equity and good conscience. The
Commissioner of Labor would also be required to notify the claimant when
an overpayment has occurred and inform the claimant of his or her right
to request a waiver. Upon any denial of a waiver request, the Commis-
sioner would also be required to notify the claimant of his or her right
to request an adjustment to the repayment schedule.

Section two of the bill would repeal subdivision 4 of section 597 of the
Labor Law which sets forth the current limits for overpayments of bene-
fits.

Section three of the bill would establish the effective date.

 
JUSTIFICATION:

Overpayments of unemployment insurance benefits have become a signif-
icant problem for both claimants and state unemployment agencies
throughout the country in the wake of major job losses caused by the
COVID-19 pandemic. According to the U.S. Department of Labor, New York
paid out approximately $70 billion in unemployment benefits. in 2.020
including roughly $115 million in overpayments, while other states
across the country paid a combined $2.9 billion in overpayments. To
address these concerns, the federal government has allowed states to
waive repayments of benefits, including Pandemic Unemployment Assistance
benefits, that are found to be without fault on the part of the claimant
and when such repayment would be contrary to equity and good conscience.

Under current New York State law, state unemployment benefits which are
later determined to have been overpaid cannot be recovered from the
claimant as long as the claimant received the benefits in good faith,
did not make a false statement or representation, and did not willfully
conceal any pertinent fact in connection with his or her claim. However,
despite these requirements, data from the U.S.  Department of Labor
shows that as of March 1, 2021, the State has not granted any waivers
for overpayments throughout the duration of the pandemic, and yet has
continued to recover a total of $93.4 million in overpaid benefits
during 2020.
The enormous rise in unemployment claims during the COVID-19 pandemic
has only exacerbated the ongoing issues with the New York State unem-
ployment system and the overpayment of benefits. Amid the confusion of
businesses closing, people losing their jobs, and navigating the
outdated and complex UI system, it is reasonable to understand how some
individuals might have made honest mistakes and unintentional errors on
their unemployment applications, with no intent to defraud the system.
And yet, as our economy moves forward to recover from the impacts of the
pandemic, many of these claimants are now being asked to pay back debts
and penalties that they never knew had incurred in the first place. To
address these inequities, this bill would allow claimants that have been
overpaid benefits to which they were not entitled during the COVID-19
pandemic to apply for a waiver to have these overpayments forgiven.
Going forward, claimants would also not be held liable for overpayments
of state or federal unemployment benefits, as permitted under federal
law, provided that the overpayment was not due to fraud or fault on the
part of the claimant and the recovery of such overpayment would be
against equity and good conscience.

 
LEGISLATIVE HISTORY:

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after March 9, 2020.

2023-S549 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    549
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to the recovery  of  overpay-
   ments  of  unemployment  benefits; and to repeal certain provisions of
   such law relating thereto

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The labor law is amended by adding a new section 594-a to
 read as follows:
   § 594-A. RECOVERY OF OVERPAYMENTS. (1) NOTWITHSTANDING  ANY  PROVISION
 OF  SECTION  FIVE HUNDRED NINETY-FOUR OF THIS TITLE TO THE CONTRARY, ANY
 CLAIMANT WHO HAS RECEIVED BENEFITS UNDER THE PROVISIONS OF THIS  ARTICLE
 TO WHICH THEY WERE NOT ENTITLED SHALL NOT BE HELD LIABLE FOR THE AMOUNTS
 OVERPAID PROVIDED THAT ALL OF THE FOLLOWING CONDITIONS EXIST:
   (A)  SUCH  OVERPAYMENT  WAS NOT DUE TO FRAUD OR DUE TO A WILLFUL FALSE
 STATEMENT OR MISREPRESENTATION;
   (B) SUCH OVERPAYMENT WAS RECEIVED WITHOUT FAULT ON  THE  PART  OF  THE
 CLAIMANT; AND
   (C)  THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   (2) NOTWITHSTANDING ANY PROVISION OF SECTION FIVE HUNDRED  NINETY-FOUR
 OF  THIS  TITLE  TO THE CONTRARY, ANY CLAIMANT WHO HAS RECEIVED BENEFITS
 PAID UNDER ANY FEDERAL UNEMPLOYMENT AND EXTENDED  UNEMPLOYMENT  PROGRAMS
 ADMINISTERED BY THE DEPARTMENT TO WHICH THEY WERE NOT ENTITLED SHALL NOT
 BE  HELD  LIABLE FOR THE AMOUNTS OVERPAID, TO THE EXTENT PERMITTED UNDER
 FEDERAL LAW, IF ALL OF THE FOLLOWING CONDITIONS EXIST:
   (A) SUCH OVERPAYMENT WAS NOT DUE TO FRAUD OR DUE TO  A  WILLFUL  FALSE
 STATEMENT OR MISREPRESENTATION;
   (B)  SUCH  OVERPAYMENT  WAS  RECEIVED WITHOUT FAULT ON THE PART OF THE
 CLAIMANT; AND

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02352-01-3
 S. 549                              2

 
   (C) THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND  GOOD
 CONSCIENCE.
   (3) WHEN DETERMINING WHETHER AN OVERPAYMENT WAS RECEIVED WITHOUT FAULT
 ON THE PART OF THE CLAIMANT, THE COMMISSIONER SHALL CONSIDER THE FOLLOW-
 ING FACTORS:
   (A)  THE  NATURE AND CAUSE OF SUCH OVERPAYMENT AND THE CAPACITY OF THE
 CLAIMANT TO RECOGNIZE THE ERROR RESULTING IN SUCH OVERPAYMENT;
   (B) WHETHER THE CLAIMANT KNEW OR REASONABLY SHOULD HAVE KNOWN THAT  HE
 OR SHE WAS NOT LAWFULLY ENTITLED TO RECEIVE SUCH BENEFITS;
   (C)  WHETHER  THE  BENEFITS  WERE  RECEIVED OR RETAINED BECAUSE OF THE
 CLAIMANT'S GOOD FAITH RELIANCE  ON  AN  ADMINISTRATIVE  OR  DEPARTMENTAL
 ERROR; AND
   (D)  WHETHER  THE  CLAIMANT  NEGLIGENTLY  REPORTED OR FAILED TO REPORT
 INFORMATION WHICH RESULTED IN SUCH OVERPAYMENT.
   (4) WHEN DETERMINING WHETHER THE RECOVERY OF ANY OVERPAYMENT WOULD  BE
 AGAINST  EQUITY  AND GOOD CONSCIENCE, THE COMMISSIONER SHALL CONSIDER IF
 SUCH REPAYMENT WOULD IMPOSE EXTRAORDINARY HARDSHIP, INCLUDING  FINANCIAL
 HARDSHIP, ON THE CLAIMANT OR THE CLAIMANT'S HOUSEHOLD.
   (5) (A) IN THE EVENT THAT A NEW DETERMINATION BY THE COMMISSIONER OR A
 DECISION  BY  A  REFEREE,  THE  APPEAL  BOARD,  OR  A COURT RESULTS IN A
 DECREASE OR DENIAL OF ANY BENEFITS PREVIOUSLY ALLOWED, OR AT  ANY  OTHER
 TIME IT HAS BEEN DETERMINED THAT AN OVERPAYMENT HAS OCCURRED, THE CLAIM-
 ANT  SHALL  BE  NOTIFIED  IN  WRITING, BY MAIL OR ELECTRONICALLY, WITHIN
 FIFTEEN DAYS OF SUCH DETERMINATION OR DECISION OF HIS OR  HER  RIGHT  TO
 APPEAL  SUCH DETERMINATION OR DECISION AND TO REQUEST A WAIVER OF RECOV-
 ERY OF SUCH OVERPAYMENT. SUCH NOTICE SHALL INCLUDE,  BUT  SHALL  NOT  BE
 LIMITED TO:
   (I)  THE  TOTAL AMOUNT OF SUCH OVERPAYMENT AND THE CAUSE OF SUCH OVER-
 PAYMENT;
   (II) THE SCHEDULE OF REPAYMENT FOR SUCH AMOUNTS OVERPAID;
   (III) THE MEANS BY WHICH THE COMMISSIONER IS ENTITLED  TO  COLLECT  OR
 RECOVER SUCH OVERPAYMENT;
   (IV)  AN  EXPLANATION  OF THE CLAIMANT'S RIGHT TO APPEAL SUCH DETERMI-
 NATION OR DECISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
 ANY RULES AND REGULATIONS PROMULGATED THEREUNDER;
   (V) AN EXPLANATION OF THE STANDARDS BY WHICH A CLAIMANT SHALL  NOT  BE
 FOUND LIABLE FOR THE AMOUNTS OVERPAID, AS SET FORTH IN THIS SECTION; AND
   (VI) THE PROCESS BY WHICH THE CLAIMANT MAY REQUEST AND OBTAIN A WAIVER
 OF RECOVERY OF SUCH OVERPAYMENT.
   (B)  THE  COMMISSIONER  SHALL  REVIEW  EACH WAIVER REQUEST IN A MANNER
 CONSISTENT WITH CONDITIONS SET FORTH IN SUBDIVISIONS ONE AND TWO OF THIS
 SECTION TO DETERMINE WHETHER THE CLAIMANT SHALL BE HELD LIABLE  FOR  ANY
 AMOUNTS  OVERPAID.  ANY  CLAIMANT  WHO IS FOUND NOT TO BE LIABLE FOR ANY
 AMOUNTS OVERPAID SHALL BE ENTITLED TO RECEIVE  A  FULL  WAIVER  OF  SUCH
 OVERPAYMENT  AND  ANY  PENALTIES AND/OR INTEREST INCURRED AS A RESULT OF
 SUCH OVERPAYMENT.
   (6) (A) UPON THE DENIAL OF ANY  WAIVER  REQUEST,  OR  UPON  ANY  OTHER
 DETERMINATION BY THE COMMISSIONER OR A DECISION BY A REFEREE, THE APPEAL
 BOARD,  OR A COURT THAT A CLAIMANT SHALL BE HELD LIABLE FOR ANY OVERPAY-
 MENT, THE CLAIMANT SHALL BE NOTIFIED IN WRITING, BY  MAIL  OR  ELECTRON-
 ICALLY,  WITHIN  FIFTEEN  DAYS  OF SUCH DETERMINATION OR DECISION.  SUCH
 NOTICE SHALL SET FORTH THE REASON FOR SUCH DENIAL,  IF  APPLICABLE,  AND
 HIS OR HER RIGHT TO REQUEST AN ADJUSTMENT TO HIS OR HER REPAYMENT SCHED-
 ULE.
   (B)  THE  COMMISSIONER  SHALL  GRANT  AN  ADJUSTMENT TO THE CLAIMANT'S
 REPAYMENT SCHEDULE IF AT ANY TIME THE CLAIMANT IS  ABLE  TO  DEMONSTRATE
 S. 549                              3
 
 THAT  THERE HAS BEEN A MATERIAL CHANGE IN HIS OR HER FINANCIAL CONDITION
 WHICH WARRANTS SUCH ADJUSTMENT.
   § 2. Subdivision 4 of section 597 of the labor law is REPEALED.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 9, 2020.

co-Sponsors

2023-S549A - Details

See Assembly Version of this Bill:: A3647
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Add §594-a, rpld §597 sub 4, Lab L
Versions Introduced in 2021-2022 Legislative Session:: S6169, A6666

2023-S549A - Summary

Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

2023-S549A - Sponsor Memo

                                 
BILL NUMBER: S549A

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the labor law, in relation to the recovery of overpay-
ments of unemployment benefits; to direct the department of labor to
provide claimants who have previously been denied waivers with applica-
tions for individual waivers; and to repeal certain provisions of such
law relating thereto

 
PURPOSE:

The purpose of this bill is to require the Commissioner of Labor to
waive certain overpayments of unemployment benefits that have occurred
during the COVID-19 pandemic, in addition to certain overpayments going
forward.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would establish that a claimant shall not be
held liable for overpayments of state or federal unemployment benefits,

as permitted under federal law, provided that the overpayment was not
due to fraud or fault on the part of the claimant and the recovery of
such overpayment would be against equity and good conscience. The
Commissioner of Labor would also be required to notify the claimant when
an overpayment has occurred and inform the claimant of his or her right
to request a waiver. Upon any denial of a waiver request, the Commis-
sioner would also be required to notify the claimant of his or her right
to request an adjustment to the repayment schedule.

Section two of the bill would repeal subdivision 4 of section 597 of the
Labor Law which sets forth the current limits for overpayments of bene-
fits.

Section three of the bill requires the Department of Labor to provide
claimants who were previously denied waivers with applications for indi-
vidual waivers.

Section four would establish the effective date.

 
JUSTIFICATION:

Overpayments of unemployment insurance benefits have become a signif-
icant problem for both claimants and state unemployment agencies
throughout the country in the wake of major job losses caused by the
COVID-19 pandemic. According to the U.S. Department of Labor, New York
paid out approximately $70 billion in unemployment benefits. in 2.020
including roughly $115 million in overpayments, while other states
across the country paid a combined $2.9 billion in overpayments. To
address these concerns, the federal government has allowed states to
waive repayments of benefits, including Pandemic Unemployment Assistance
benefits, that are found to be without fault on the part of the claimant
and when such repayment would be contrary to equity and good conscience.

Under current New York State law, state unemployment benefits which are
later determined to have been overpaid cannot be recovered from the
claimant as long as the claimant received the benefits in good faith,
did not make a false statement or representation, and did not willfully
conceal any pertinent fact in connection with his or her claim. However,
despite these requirements, data from the U.S.  Department of Labor
shows that as of March 1, 2021, the State has not granted any waivers
for overpayments throughout the duration of the pandemic, and yet has
continued to recover a total of $93.4 million in overpaid benefits
during 2020.

The enormous rise in unemployment claims during the COVID-19 pandemic
has only exacerbated the ongoing issues with the New York State unem-
ployment system and the overpayment of benefits. Amid the confusion of
businesses closing, people losing their jobs, and navigating the
outdated and complex UI system, it is reasonable to understand how some
individuals might have made honest mistakes and unintentional errors on
their unemployment applications, with no intent to defraud the system.
And yet, as our economy moves forward to recover from the impacts of the
pandemic, many of these claimants are now being asked to pay back debts
and penalties that they never knew had incurred in the first place. To
address these inequities, this bill would allow claimants that have been
overpaid benefits to which they were not entitled during the COVID-19
pandemic to apply for a waiver to have these overpayments forgiven.
Going forward, claimants would also not be held liable for overpayments
of state or federal unemployment benefits, as permitted under federal
law, provided that the overpayment was not due to fraud or fault on the
part of the claimant and the recovery of such overpayment would be
against equity and good conscience.

 
LEGISLATIVE HISTORY:

2022: S.6169 - died in Labor / A.6666 - Passed Assembly

2021: S.6169 - died in Labor / A.6666 - Died on 3rd Reading

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after March 9, 2020.

2023-S549A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  549--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the labor law, in relation to the recovery of overpay-
   ments of unemployment benefits; to direct the department of  labor  to
   provide  claimants who have previously been denied waivers with appli-
   cations for individual waivers; and to repeal  certain  provisions  of
   such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new section  594-a  to
 read as follows:
   §  594-A.  RECOVERY OF OVERPAYMENTS. (1) DEFINITIONS. FOR THE PURPOSES
 OF THIS SECTION:
   (A) "WITHOUT FAULT" MEANS THE CLAIMANT DID NOT,  WITH  THE  INTENT  TO
 RECEIVE  BENEFITS,  INTENTIONALLY  SUPPLY FALSE INFORMATION OR KNOWINGLY
 OMIT INFORMATION, WHICH DIRECTLY  RESULTED  IN  THE  DEPARTMENT  ISSUING
 BENEFITS TO WHICH THE CLAIMANT KNEW THEY WERE NOT ENTITLED;
   (B)  "FINAL  DETERMINATION" MEANS THIRTY DAYS AFTER APPEAL RIGHTS HAVE
 BEEN EXHAUSTED OR ABANDONED.
   (C) "WILLFUL" MEANS INTENTIONAL AND DELIBERATE.
   (2) NOTWITHSTANDING ANY PROVISION OF SECTION FIVE HUNDRED  NINETY-FOUR
 OF  THIS  TITLE  TO THE CONTRARY, ANY CLAIMANT WHO HAS RECEIVED BENEFITS
 UNDER THE PROVISIONS OF THIS ARTICLE ON OR AFTER JANUARY TWENTY-SEVENTH,
 TWO THOUSAND TWENTY, TO WHICH THEY WERE NOT ENTITLED SHALL NOT  BE  HELD
 LIABLE  FOR  THE  AMOUNTS  OVERPAID  PROVIDED  THAT ALL OF THE FOLLOWING
 CONDITIONS EXIST:
   (A) SUCH OVERPAYMENT WAS NOT DUE TO FRAUD OR DUE TO  A  WILLFUL  FALSE
 STATEMENT OR MISREPRESENTATION;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02352-02-3
 S. 549--A                           2

 
   (B)  SUCH  OVERPAYMENT  WAS  RECEIVED WITHOUT FAULT ON THE PART OF THE
 CLAIMANT; AND
   (C)  THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   (3) WHEN DETERMINING WHETHER AN OVERPAYMENT WAS RECEIVED WITHOUT FAULT
 ON THE PART OF THE CLAIMANT, THE COMMISSIONER SHALL CONSIDER THE FOLLOW-
 ING FACTORS:
   (A) THE NATURE AND CAUSE OF SUCH OVERPAYMENT AND THE CAPACITY  OF  THE
 CLAIMANT TO RECOGNIZE THE ERROR RESULTING IN SUCH OVERPAYMENT;
   (B)  WHETHER THE CLAIMANT KNEW OR REASONABLY SHOULD HAVE KNOWN THAT HE
 OR SHE WAS NOT LAWFULLY ENTITLED TO RECEIVE SUCH BENEFITS;
   (C) WHETHER THE BENEFITS WERE RECEIVED  OR  RETAINED  BECAUSE  OF  THE
 CLAIMANT'S  GOOD  FAITH  RELIANCE  ON  AN ADMINISTRATIVE OR DEPARTMENTAL
 ERROR; AND
   (D) WHETHER THE CLAIMANT WILLFULLY REPORTED OR FAILED TO REPORT INFOR-
 MATION WHICH RESULTED IN SUCH OVERPAYMENT.
   (4) (A) THERE SHALL BE A PRESUMPTION  THAT  THE  CLAIMANT  IS  WITHOUT
 FAULT IF:
   (I) THE DEPARTMENT PROVIDED CONFLICTING, CHANGING, OR CONFUSING INFOR-
 MATION OR INSTRUCTIONS;
   (II)  THE  DEPARTMENT TOOK MORE THAN SIX MONTHS TO IMPLEMENT A FEDERAL
 LAW REGARDING PROOF OF ELIGIBILITY FROM CLAIMANTS;
   (III) THE CLAIMANT WAS UNABLE TO REACH THE  DEPARTMENT  DESPITE  THEIR
 BEST  EFFORTS TO INQUIRE OR CLARIFY INFORMATION THE INDIVIDUAL NEEDED TO
 PROVIDE DUE TO LANGUAGE,  EDUCATION,  LITERACY,  DISABILITY  OR  SIMILAR
 BARRIERS;
   (IV) THE CLAIMANT WAS UNABLE TO UNDERSTAND THE DEPARTMENT'S NOTICES OR
 DIRECTIVES  DUE  TO  LANGUAGE,  EDUCATION, LITERACY, DISABILITY OR OTHER
 SIMILAR BARRIERS;
   (V) THE CLAIMANT CHOSE A REASON FOR SEPARATION WHICH IS LEGALLY INCOR-
 RECT, THOUGH REASONABLE FOR THE CLAIMANT  TO  HAVE  SELECTED  UNDER  THE
 CIRCUMSTANCES; OR
   (VI)  THE  CLAIMANT  HAD  ASSISTANCE IN FILING A CLAIM, CERTIFYING, OR
 OTHERWISE RESPONDING TO THE DEPARTMENT AND THE CLAIMANT'S ASSISTANT  DID
 NOT CONFIRM REQUIRED INFORMATION WITH THE CLAIMANT OR MISUNDERSTOOD SUCH
 INFORMATION  PROVIDED  BY THE CLAIMANT, RESULTING IN INACCURATE INFORMA-
 TION BEING SUBMITTED WITHOUT THE CLAIMANT'S KNOWLEDGE.
   (B) THERE SHALL BE A PRESUMPTION THAT THE PAYMENT OF BENEFITS IS WITH-
 OUT FAULT IF THE OVERPAYMENT WAS DUE TO AGENCY ERROR OR MISTAKE  OR  THE
 EMPLOYER   PROVIDED   INCORRECT  OR  UNTIMELY  INFORMATION.  RECEIPT  OR
 POSSESSION OF THE CLAIMANTS' UNEMPLOYMENT INSURANCE HANDBOOK  SHALL  NOT
 CREATE  A  PRESUMPTION THAT THE CLAIMANT WAS ON NOTICE OF THE HANDBOOK'S
 CONTENTS NOR SHALL RECEIPT OR POSSESSION OF THE HANDBOOK BE USED AGAINST
 THE CLAIMANT ON POINTS OF FACT OR LAW.
   (5) RECOVERY OF ANY OVERPAYMENT  WOULD  BE  AGAINST  EQUITY  AND  GOOD
 CONSCIENCE IF:
   (A)  RECOVERY  WOULD  CAUSE FINANCIAL HARDSHIP TO THE PERSON FROM WHOM
 RECOVERY IS SOUGHT;
   (B) THE RECIPIENT OF THE OVERPAYMENT CAN  SHOW,  REGARDLESS  OF  THEIR
 FINANCIAL  SITUATION,  THAT  REPAYMENT  WOULD CAUSE THEM TO RELINQUISH A
 VALUABLE RIGHT OR CHANGE THEIR POSITION FOR THE  WORSE,  INCLUDING,  BUT
 NOT  LIMITED  TO, SIGNING A LEASE, TAKING OUT A LOAN, OR DECLINING OTHER
 STATE OR FEDERAL ASSISTANCE  IN  RELIANCE  ON  RECEIPT  OF  UNEMPLOYMENT
 INSURANCE BENEFITS;
   (C) THE INDIVIDUAL OR THEIR HOUSEHOLD RECEIVES SOCIAL SECURITY INCOME,
 SUPPLEMENTAL  SECURITY  INCOME,  SOCIAL  SECURITY  DISABILITY, MEDICAID,
 S. 549--A                           3

 MEDICARE, FREE OR REDUCED PUBLIC SCHOOL LUNCH,  FIP,  TEMPORARY  ASSIST-
 ANCE,  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM  BENEFITS, NUTRITION
 BENEFITS PROVIDED AS PART OF THE SPECIAL SUPPLEMENTAL NUTRITION  PROGRAM
 FOR  WOMEN,  INFANTS  AND CHILDREN (WIC), HOME ENERGY ASSISTANCE PROGRAM
 BENEFITS,  SENIOR  CITIZEN  RENT  INCREASE  EXEMPTION,  DISABILITY  RENT
 INCREASE  EXEMPTION, RENTAL SUBSIDY PURSUANT TO FEDERAL OR STATE LAW, IS
 AT OR BELOW FOUR HUNDRED PERCENT OF THE FEDERAL  POVERTY  GUIDELINES  OR
 LIVING  IN  PROJECT-BASED SUBSIDIZED HOUSING OR ANY SUBSTANTIALLY EQUIV-
 ALENT SUCCESSOR PROGRAMS TO THE AFOREMENTIONED BENEFITS PROGRAMS;
   (D) THE INDIVIDUAL USED THE UNEMPLOYMENT BENEFITS TO MEET THEIR  ORDI-
 NARY LIVING EXPENSES, INCLUDING, BUT NOT LIMITED TO, FOOD, RENT, MEDICAL
 COSTS  OR  INSURANCE,  DENTAL  BILLS  OR INSURANCE, SCHOOL LOANS, SCHOOL
 FEES, UTILITIES, CHILD CARE, MORTGAGE PAYMENTS, TRANSPORTATION, PURCHASE
 OR MAINTENANCE OF A CAR OR EQUIPMENT NEEDED FOR EMPLOYMENT  OR  SELF-EM-
 PLOYMENT, OR OPERATING EXPENSES FOR SELF-EMPLOYMENT; OR
   (E)  THERE  IS  ANY OTHER REASON FOR WHICH RECOVERY OF THE OVERPAYMENT
 WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE UNDER THE CIRCUMSTANCES.
   (6) (A) IN THE EVENT THAT A NEW DETERMINATION BY THE COMMISSIONER OR A
 DECISION BY A REFEREE, THE  APPEAL  BOARD,  OR  A  COURT  RESULTS  IN  A
 DECREASE  OR  DENIAL OF ANY BENEFITS PREVIOUSLY ALLOWED, OR AT ANY OTHER
 TIME IT HAS BEEN DETERMINED THAT AN OVERPAYMENT HAS OCCURRED, THE CLAIM-
 ANT SHALL BE NOTIFIED IN WRITING,  BY  MAIL  OR  ELECTRONICALLY,  WITHIN
 FIFTEEN  DAYS  OF  SUCH DETERMINATION OR DECISION OF HIS OR HER RIGHT TO
 APPEAL SUCH DETERMINATION OR DECISION AND TO REQUEST A WAIVER OF  RECOV-
 ERY  OF  SUCH  OVERPAYMENT.  SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT BE
 LIMITED TO:
   (I) THE TOTAL AMOUNT OF SUCH OVERPAYMENT AND THE CAUSE OF  SUCH  OVER-
 PAYMENT;
   (II) THE SCHEDULE OF REPAYMENT FOR SUCH AMOUNTS OVERPAID;
   (III)  THE  MEANS  BY WHICH THE COMMISSIONER IS ENTITLED TO COLLECT OR
 RECOVER SUCH OVERPAYMENT;
   (IV) AN EXPLANATION OF THE CLAIMANT'S RIGHT TO  APPEAL  SUCH  DETERMI-
 NATION OR DECISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
 ANY RULES AND REGULATIONS PROMULGATED THEREUNDER;
   (V)  AN  EXPLANATION OF THE STANDARDS BY WHICH A CLAIMANT SHALL NOT BE
 FOUND LIABLE FOR THE AMOUNTS OVERPAID, AS SET FORTH IN THIS SECTION;
   (VI) THE PROCESS BY WHICH THE CLAIMANT MAY REQUEST AND OBTAIN A WAIVER
 OF RECOVERY OF SUCH OVERPAYMENT, INCLUDING A COPY OF THE WAIVER APPLICA-
 TION; AND
   (VII) THE AMOUNT THAT IS WAIVED AND THE REASON WHY ANY OR ALL  OF  THE
 OVERPAYMENT WAS NOT WAIVED.
   (B)  THE  COMMISSIONER  SHALL  REVIEW  EACH WAIVER REQUEST IN A MANNER
 CONSISTENT WITH THIS SECTION TO DETERMINE WHETHER THE CLAIMANT SHALL  BE
 HELD  LIABLE  FOR ANY AMOUNTS OVERPAID. ANY CLAIMANT WHO IS FOUND NOT TO
 BE LIABLE FOR ANY AMOUNTS OVERPAID SHALL BE ENTITLED TO RECEIVE  A  FULL
 WAIVER  OF SUCH OVERPAYMENT AND ANY PREVIOUSLY IMPOSED PENALTIES ON SUCH
 OVERPAYMENT MUST BE RESCINDED ACCORDINGLY.
   (C) (I) ANY CLAIMANT WHO DISAGREES WITH A  DETERMINATION  REGARDING  A
 WAIVER  MAY REQUEST A HEARING WITHIN SIXTY DAYS OF RECEIPT OF THE DETER-
 MINATION.
   (II) CLAIMANTS SHALL HAVE ALL APPEALS RIGHTS AS PROVIDED  UNDER  TITLE
 EIGHT  OF  THIS  ARTICLE, EXCEPT THAT REFEREES MAY EXTEND THE TIME FIXED
 FOR REQUESTING A HEARING UPON GOOD CAUSE SHOWN.
   (III) WHEN A DETERMINATION IS MADE THAT THE CLAIMANT WAS AT FAULT, THE
 REFEREE AND UNEMPLOYMENT INSURANCE APPEALS BOARD SHALL REVIEW THE DETER-
 MINATION OF FAULT AND ANY WILLFUL MISREPRESENTATIONS DE NOVO.
 S. 549--A                           4
 
   (D) THE DEPARTMENT SHALL WITHIN THIRTY DAYS OF THE EFFECTIVE  DATE  OF
 THIS  SECTION  DEVELOP  AND  IMPLEMENT  A PROCESS BY WHICH CLAIMANTS MAY
 REQUEST AND OBTAIN AN INDIVIDUAL WAIVER APPLICATION BY PHONE, FAX, MAIL,
 AND THROUGH THE DEPARTMENT'S TWO-WAY COMMUNICATION SYSTEM. THE  APPLICA-
 TION SHALL BE MADE AVAILABLE TO ALL CLAIMANTS WITHOUT REGARD TO A DETER-
 MINATION  OF FAULT OR WILLFULNESS IN THE RECEIPT OF THE CLAIMANT'S OVER-
 PAYMENT.
   (E) ALL NOTIFICATIONS SHALL BE TRANSLATED INTO THE TEN  MOST  COMMONLY
 SPOKEN LANGUAGES IN THE STATE.
   (F)  ANY  FUNDS  RECOUPED  OR REPAID PRIOR TO THE GRANTING OF A WAIVER
 UNDER THIS SECTION SHALL BE RETURNED TO THE CLAIMANT AS  PROVIDED  UNDER
 SUBDIVISION FIVE OF THIS SECTION.
   (7)  (A)  UPON  THE  DENIAL  OF  ANY WAIVER REQUEST, OR UPON ANY OTHER
 DETERMINATION BY THE COMMISSIONER OR A DECISION BY A REFEREE, THE APPEAL
 BOARD, OR A COURT THAT A CLAIMANT SHALL BE HELD LIABLE FOR ANY  OVERPAY-
 MENT,  THE  CLAIMANT  SHALL BE NOTIFIED IN WRITING, BY MAIL OR ELECTRON-
 ICALLY, WITHIN FIFTEEN DAYS OF SUCH DETERMINATION  OR  DECISION.    SUCH
 NOTICE  SHALL  SET  FORTH THE REASON FOR SUCH DENIAL, IF APPLICABLE, AND
 HIS OR HER RIGHT TO REQUEST AN ADJUSTMENT TO HIS OR HER REPAYMENT SCHED-
 ULE.
   (B) WHERE A WAIVER REQUEST IS DENIED, A CLAIMANT SHALL  BE  OFFERED  A
 REPAYMENT PLAN TO PAY DOWN THE AMOUNT OWED OVER A PERIOD OF TIME NO LESS
 THAN THREE YEARS. THE DURATION OF A REPAYMENT PLAN SHALL BE BASED ON THE
 CLAIMANT'S  ABILITY TO PAY. UPON A SHOWING OF FINANCIAL HARDSHIP, REPAY-
 MENT PLANS SHALL BE SET FOR AN INDEFINITE PERIOD WITH  MINIMUM  PAYMENTS
 OF  NO  LESS  THAN FIVE DOLLARS PER MONTH. NOTHING IN THIS SECTION SHALL
 IMPEDE THE ABILITY OF THE DEPARTMENT TO DISCHARGE, WRITE OFF,  OR  WAIVE
 ANY OVERPAYMENT.
   (C)  THE  COMMISSIONER  SHALL  GRANT  AN  ADJUSTMENT TO THE CLAIMANT'S
 REPAYMENT SCHEDULE IF AT ANY TIME THE CLAIMANT IS  ABLE  TO  DEMONSTRATE
 THAT  THERE  HAS  BEEN  A CHANGE IN HIS OR HER FINANCIAL CONDITION WHICH
 WARRANTS SUCH ADJUSTMENT.  THE DEPARTMENT SHALL NOTIFY CLAIMANTS OF  THE
 ABILITY TO SEEK A MODIFIED REPAYMENT PLAN IN WRITING UPON THE CLAIMANT'S
 ENTRY INTO A REPAYMENT PLAN.
   § 2. Subdivision 4 of section 597 of the labor law is REPEALED.
   §  3. Within sixty days of the effective date of this act, the depart-
 ment of labor shall provide claimants who have  previously  been  denied
 waivers  between  March 9, 2020, and the effective date of this act with
 applications for individual waivers. If it is found that the  department
 has collected benefits from a claimant as a result of the recovery of an
 overpayment  which would be barred under the provisions of this act, the
 department shall refund such benefits to the claimant within thirty days
 of the approval of the waiver.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after March 9, 2020.

co-Sponsors

2023-S549B - Details

See Assembly Version of this Bill:: A3647
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Add §594-a, rpld §597 sub 4, Lab L
Versions Introduced in 2021-2022 Legislative Session:: S6169, A6666

2023-S549B - Summary

Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

2023-S549B - Sponsor Memo

                                 
BILL NUMBER: S549B

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the labor law, in relation to the recovery of overpay-
ments of unemployment benefits; to direct the department of labor to
provide claimants who have previously been denied waivers with applica-
tions for individual waivers; and to repeal certain provisions of such
law relating thereto

 
PURPOSE:

The purpose of this bill is to require the Commissioner of Labor to
waive certain overpayments of unemployment benefits that have occurred
during the COVID-19 pandemic, in addition to certain overpayments going
forward.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would establish that a claimant shall not be
held liable for overpayments of state or federal unemployment benefits,

as permitted under federal law, provided that the overpayment was not
due to fraud or fault on the part of the claimant and the recovery of
such overpayment would be against equity and good conscience. The
Commissioner of Labor would also be required to notify the claimant when
an overpayment has occurred and inform the claimant of his or her right
to request a waiver. Upon any denial of a waiver request, the Commis-
sioner would also be required to notify the claimant of his or her right
to request an adjustment to the repayment schedule.

Section two of the bill would repeal subdivision 4 of section 597 of the
Labor Law which sets forth the current limits for overpayments of bene-
fits.

Section three of the bill would establish the effective date.

 
JUSTIFICATION:

Overpayments of unemployment insurance benefits have become a signif-
icant problem for both claimants and state unemployment agencies
throughout the country in the wake of major job losses caused by the
COVID-19 pandemic. According to the U.S. Department of Labor, New York
paid out approximately $70 billion in unemployment benefits in 2020
including roughly $115 million in overpayments, while other states
across the country paid a combined $2.9 billion in overpayments. To
address these concerns, the federal government has allowed states to
waive repayments of benefits, including Pandemic Unemployment Assistance
benefits, that are found to be without fault on the part of the claimant
and when such repayment would be contrary to equity and good conscience.

Under current New York State law, state unemployment benefits which are
later determined to have been overpaid cannot be recovered from the
claimant as long as the claimant received the benefits in good faith,
did not make a false statement or representation, and did not willfully
conceal any pertinent fact in connection with his or her claim. However,
despite these requirements, data from the U.S. Department of Labor shows
that as of March 1, 2021, the State has not granted any waivers for
overpayments throughout the duration of the pandemic, and yet has
continued to recover a total of $93.4 million in overpaid benefits
during 2020.

The enormous rise in unemployment claims during the COVID-19 pandemic
has only exacerbated the ongoing issues with the New York State unem-
ployment system and the overpayment of benefits. Amid the confusion of
businesses closing, people losing their jobs, and navigating the
outdated and complex UI system, it is reasonable to understand how some
individuals might have made honest mistakes and unintentional errors on
their unemployment applications, with no intent to defraud the system.
And yet, as our economy moves forward to recover from the impacts of the
pandemic, many of these claimants are now being asked to pay back debts
and penalties that they never knew had incurred in the first place. To
address these inequities, this bill would allow claimants that have been
overpaid benefits to which they were not entitled during the COVID-19
pandemic to apply for a waiver to have these overpayments forgiven .
Going forward, claimants would also not be held liable for overpayments
of state or federal unemployment benefits, as permitted under federal
law, provided that the overpayment was not due to fraud or fault on the
part of the claimant and the recovery of such overpayment would be
against equity and good conscience.

 
LEGISLATIVE HISTORY:

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after March 9, 2020.

2023-S549B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  549--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  KRUEGER,  RAMOS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Labor  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted  to  said  committee  --  recommitted  to  the
   Committee on Labor in accordance with Senate Rule 6, sec. 8 -- commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the labor law, in relation to the recovery  of  overpay-
   ments  of  unemployment benefits; to direct the department of labor to
   provide claimants who have previously been denied waivers with  appli-
   cations  for  individual  waivers; and to repeal certain provisions of
   such law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The labor law is amended by adding a new section 594-a to
 read as follows:
   § 594-A. RECOVERY OF OVERPAYMENTS. (1) DEFINITIONS. FOR  THE  PURPOSES
 OF THIS SECTION:
   (A)  "WITHOUT  FAULT"  MEANS  THE CLAIMANT DID NOT, WITH THE INTENT TO
 RECEIVE BENEFITS, INTENTIONALLY SUPPLY FALSE  INFORMATION  OR  KNOWINGLY
 OMIT  INFORMATION,  WHICH  DIRECTLY  RESULTED  IN THE DEPARTMENT ISSUING
 BENEFITS TO WHICH THE CLAIMANT KNEW THEY WERE NOT ENTITLED;
   (B) "FINAL DETERMINATION" MEANS THIRTY DAYS AFTER APPEAL  RIGHTS  HAVE
 BEEN EXHAUSTED OR ABANDONED.
   (C)  "WILLFUL MISREPRESENTATION" OR "WILLFUL FALSE STATEMENT" MEANS AN
 INTENTIONAL, KNOWING, OR  DELIBERATELY  FALSE  REPRESENTATION  FROM  THE
 CLAIMANT  TO THE DEPARTMENT, MADE IN ORDER TO OBTAIN UNEMPLOYMENT INSUR-
 ANCE BENEFITS. "KNOWING" FOR THE PURPOSES OF THIS PARAGRAPH MEANS HAVING
 ACTUAL KNOWLEDGE.
   (2) NOTWITHSTANDING ANY PROVISION OF SECTION FIVE HUNDRED  NINETY-FOUR
 OF  THIS  TITLE  TO THE CONTRARY, ANY CLAIMANT WHO HAS RECEIVED BENEFITS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02352-08-4

 S. 549--B                           2
 
 UNDER THE PROVISIONS OF THIS ARTICLE ON OR AFTER JANUARY TWENTY-SEVENTH,
 TWO THOUSAND TWENTY, TO WHICH THEY WERE NOT ENTITLED SHALL NOT  BE  HELD
 LIABLE  FOR  THE  AMOUNTS  OVERPAID  PROVIDED  THAT ALL OF THE FOLLOWING
 CONDITIONS EXIST:
   (A)  SUCH  OVERPAYMENT  WAS  NOT  DUE  TO A WILLFUL FALSE STATEMENT OR
 MISREPRESENTATION;
   (B) SUCH OVERPAYMENT WAS RECEIVED WITHOUT FAULT ON  THE  PART  OF  THE
 CLAIMANT; AND
   (C)  THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   (3) WHEN DETERMINING WHETHER AN OVERPAYMENT WAS RECEIVED WITHOUT FAULT
 ON THE PART OF THE CLAIMANT, THE COMMISSIONER SHALL CONSIDER THE FOLLOW-
 ING FACTORS:
   (A) THE NATURE AND CAUSE OF SUCH OVERPAYMENT AND THE CAPACITY  OF  THE
 CLAIMANT TO RECOGNIZE THE ERROR RESULTING IN SUCH OVERPAYMENT;
   (B)  WHETHER  THE  CLAIMANT  KNEW OR REASONABLY SHOULD HAVE KNOWN THAT
 SUCH CLAIMANT WAS NOT LAWFULLY ENTITLED TO RECEIVE SUCH BENEFITS;
   (C) WHETHER THE BENEFITS WERE RECEIVED  OR  RETAINED  BECAUSE  OF  THE
 CLAIMANT'S  GOOD  FAITH  RELIANCE  ON  AN ADMINISTRATIVE OR DEPARTMENTAL
 ERROR; AND
   (D) WHETHER THE CLAIMANT WILLFULLY REPORTED OR FAILED TO REPORT INFOR-
 MATION WHICH RESULTED IN SUCH OVERPAYMENT.
   (4) (A) THERE SHALL BE A PRESUMPTION  THAT  THE  CLAIMANT  IS  WITHOUT
 FAULT IF:
   (I) THE DEPARTMENT PROVIDED CONFLICTING, CHANGING, OR CONFUSING INFOR-
 MATION OR INSTRUCTIONS;
   (II)  THE  DEPARTMENT TOOK MORE THAN SIX MONTHS TO IMPLEMENT A FEDERAL
 LAW REGARDING PROOF OF ELIGIBILITY FROM CLAIMANTS;
   (III) THE CLAIMANT WAS UNABLE TO REACH THE  DEPARTMENT  DESPITE  THEIR
 BEST  EFFORTS TO INQUIRE OR CLARIFY INFORMATION THE INDIVIDUAL NEEDED TO
 PROVIDE DUE TO LANGUAGE,  EDUCATION,  LITERACY,  DISABILITY  OR  SIMILAR
 BARRIERS;
   (IV) THE CLAIMANT WAS UNABLE TO UNDERSTAND THE DEPARTMENT'S NOTICES OR
 DIRECTIVES  DUE  TO  LANGUAGE,  EDUCATION, LITERACY, DISABILITY OR OTHER
 SIMILAR BARRIERS;
   (V) THE CLAIMANT CHOSE A REASON FOR SEPARATION WHICH IS LEGALLY INCOR-
 RECT, THOUGH REASONABLE FOR THE CLAIMANT  TO  HAVE  SELECTED  UNDER  THE
 CIRCUMSTANCES; OR
   (VI)  THE  CLAIMANT  HAD  ASSISTANCE IN FILING A CLAIM, CERTIFYING, OR
 OTHERWISE RESPONDING TO THE DEPARTMENT AND THE CLAIMANT'S ASSISTANT  DID
 NOT CONFIRM REQUIRED INFORMATION WITH THE CLAIMANT OR MISUNDERSTOOD SUCH
 INFORMATION  PROVIDED  BY THE CLAIMANT, RESULTING IN INACCURATE INFORMA-
 TION BEING SUBMITTED WITHOUT THE CLAIMANT'S KNOWLEDGE.
   (B) THERE SHALL BE A PRESUMPTION THAT THE PAYMENT OF BENEFITS IS WITH-
 OUT FAULT IF THE OVERPAYMENT WAS DUE TO AGENCY ERROR OR MISTAKE  OR  THE
 EMPLOYER   PROVIDED   INCORRECT  OR  UNTIMELY  INFORMATION.  RECEIPT  OR
 POSSESSION OF THE CLAIMANTS' UNEMPLOYMENT INSURANCE HANDBOOK  SHALL  NOT
 CREATE  A  PRESUMPTION THAT THE CLAIMANT WAS ON NOTICE OF THE HANDBOOK'S
 CONTENTS NOR SHALL RECEIPT OR POSSESSION OF THE HANDBOOK BE USED AGAINST
 THE CLAIMANT ON POINTS OF FACT OR LAW.
   (5) RECOVERY OF ANY OVERPAYMENT  WOULD  BE  AGAINST  EQUITY  AND  GOOD
 CONSCIENCE IF:
   (A)  RECOVERY  WOULD  CAUSE FINANCIAL HARDSHIP TO THE PERSON FROM WHOM
 RECOVERY IS SOUGHT;
   (B) THE RECIPIENT OF THE OVERPAYMENT CAN  SHOW,  REGARDLESS  OF  THEIR
 FINANCIAL  SITUATION,  THAT  REPAYMENT  WOULD CAUSE THEM TO RELINQUISH A
 S. 549--B                           3
 
 VALUABLE RIGHT OR CHANGE THEIR POSITION FOR THE  WORSE,  INCLUDING,  BUT
 NOT  LIMITED  TO, SIGNING A LEASE, TAKING OUT A LOAN, OR DECLINING OTHER
 STATE OR FEDERAL ASSISTANCE  IN  RELIANCE  ON  RECEIPT  OF  UNEMPLOYMENT
 INSURANCE BENEFITS;
   (C) THE INDIVIDUAL OR THEIR HOUSEHOLD RECEIVES SOCIAL SECURITY INCOME,
 SUPPLEMENTAL  SECURITY  INCOME,  SOCIAL  SECURITY  DISABILITY, MEDICAID,
 MEDICARE, FREE OR REDUCED PUBLIC SCHOOL LUNCH,  FIP,  TEMPORARY  ASSIST-
 ANCE,  SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM  BENEFITS, NUTRITION
 BENEFITS PROVIDED AS PART OF THE SPECIAL SUPPLEMENTAL NUTRITION  PROGRAM
 FOR  WOMEN,  INFANTS  AND CHILDREN (WIC), HOME ENERGY ASSISTANCE PROGRAM
 BENEFITS,  SENIOR  CITIZEN  RENT  INCREASE  EXEMPTION,  DISABILITY  RENT
 INCREASE  EXEMPTION, RENTAL SUBSIDY PURSUANT TO FEDERAL OR STATE LAW, IS
 AT OR BELOW FOUR HUNDRED PERCENT OF THE FEDERAL  POVERTY  GUIDELINES  OR
 LIVING  IN  PROJECT-BASED SUBSIDIZED HOUSING OR ANY SUBSTANTIALLY EQUIV-
 ALENT SUCCESSOR PROGRAMS TO THE AFOREMENTIONED BENEFITS PROGRAMS;
   (D) THE INDIVIDUAL USED THE UNEMPLOYMENT BENEFITS TO MEET THEIR  ORDI-
 NARY LIVING EXPENSES, INCLUDING, BUT NOT LIMITED TO, FOOD, RENT, MEDICAL
 COSTS  OR  INSURANCE,  DENTAL  BILLS  OR INSURANCE, SCHOOL LOANS, SCHOOL
 FEES, UTILITIES, CHILD CARE, MORTGAGE PAYMENTS, TRANSPORTATION, PURCHASE
 OR MAINTENANCE OF A CAR OR EQUIPMENT NEEDED FOR EMPLOYMENT  OR  SELF-EM-
 PLOYMENT, OR OPERATING EXPENSES FOR SELF-EMPLOYMENT; OR
   (E)  THERE  IS  ANY OTHER REASON FOR WHICH RECOVERY OF THE OVERPAYMENT
 WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE UNDER THE CIRCUMSTANCES.
   (6) (A) IN THE EVENT THAT A NEW DETERMINATION BY THE COMMISSIONER OR A
 DECISION BY A REFEREE, THE  APPEAL  BOARD,  OR  A  COURT  RESULTS  IN  A
 DECREASE  OR  DENIAL OF ANY BENEFITS PREVIOUSLY ALLOWED, OR AT ANY OTHER
 TIME IT HAS BEEN DETERMINED THAT AN OVERPAYMENT HAS OCCURRED, THE CLAIM-
 ANT SHALL BE NOTIFIED IN WRITING,  BY  MAIL  OR  ELECTRONICALLY,  WITHIN
 FIFTEEN  DAYS OF SUCH DETERMINATION OR DECISION OF SUCH CLAIMANT'S RIGHT
 TO APPEAL SUCH DETERMINATION OR DECISION AND  TO  REQUEST  A  WAIVER  OF
 RECOVERY  OF  SUCH OVERPAYMENT. SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT
 BE LIMITED TO:
   (I) THE TOTAL AMOUNT OF SUCH OVERPAYMENT AND THE CAUSE OF  SUCH  OVER-
 PAYMENT;
   (II) THE SCHEDULE OF REPAYMENT FOR SUCH AMOUNTS OVERPAID;
   (III)  THE  MEANS  BY WHICH THE COMMISSIONER IS ENTITLED TO COLLECT OR
 RECOVER SUCH OVERPAYMENT;
   (IV) AN EXPLANATION OF THE CLAIMANT'S RIGHT TO  APPEAL  SUCH  DETERMI-
 NATION OR DECISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
 ANY RULES AND REGULATIONS PROMULGATED THEREUNDER;
   (V)  AN  EXPLANATION OF THE STANDARDS BY WHICH A CLAIMANT SHALL NOT BE
 FOUND LIABLE FOR THE AMOUNTS OVERPAID, AS SET FORTH IN THIS SECTION;
   (VI) THE PROCESS BY WHICH THE CLAIMANT MAY REQUEST AND OBTAIN A WAIVER
 OF RECOVERY OF SUCH OVERPAYMENT, INCLUDING A COPY OF THE WAIVER APPLICA-
 TION; AND
   (VII) THE AMOUNT THAT IS WAIVED AND THE REASON WHY ANY OR ALL  OF  THE
 OVERPAYMENT WAS NOT WAIVED.
   (B)  THE  COMMISSIONER  SHALL  REVIEW  EACH WAIVER REQUEST IN A MANNER
 CONSISTENT WITH THIS SECTION TO DETERMINE WHETHER THE CLAIMANT SHALL  BE
 HELD  LIABLE  FOR ANY AMOUNTS OVERPAID. ANY CLAIMANT WHO IS FOUND NOT TO
 BE LIABLE FOR ANY AMOUNTS OVERPAID SHALL BE ENTITLED TO RECEIVE  A  FULL
 WAIVER  OF SUCH OVERPAYMENT AND ANY PREVIOUSLY IMPOSED PENALTIES ON SUCH
 OVERPAYMENT MUST BE RESCINDED ACCORDINGLY.
   (C) (I) ANY CLAIMANT WHO DISAGREES WITH A  DETERMINATION  REGARDING  A
 WAIVER  MAY REQUEST A HEARING WITHIN SIXTY DAYS OF RECEIPT OF THE DETER-
 MINATION.
 S. 549--B                           4
 
   (II) CLAIMANTS SHALL HAVE ALL APPEALS RIGHTS AS PROVIDED  UNDER  TITLE
 EIGHT  OF  THIS  ARTICLE, EXCEPT THAT REFEREES MAY EXTEND THE TIME FIXED
 FOR REQUESTING A HEARING UPON GOOD CAUSE SHOWN.
   (III) WHEN A DETERMINATION IS MADE THAT THE CLAIMANT WAS AT FAULT, THE
 REFEREE AND UNEMPLOYMENT INSURANCE APPEALS BOARD SHALL REVIEW THE DETER-
 MINATION OF FAULT AND ANY WILLFUL MISREPRESENTATIONS DE NOVO.
   (D)  THE  DEPARTMENT SHALL WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF
 THIS SECTION DEVELOP AND IMPLEMENT A  PROCESS  BY  WHICH  CLAIMANTS  MAY
 REQUEST AND OBTAIN AN INDIVIDUAL WAIVER APPLICATION BY PHONE, FAX, MAIL,
 AND  THROUGH THE DEPARTMENT'S TWO-WAY COMMUNICATION SYSTEM. THE APPLICA-
 TION SHALL BE MADE AVAILABLE TO ALL CLAIMANTS WITHOUT REGARD TO A DETER-
 MINATION OF FAULT OR WILLFULNESS IN THE RECEIPT OF THE CLAIMANT'S  OVER-
 PAYMENT.
   (E) ALL NOTIFICATIONS SHALL BE TRANSLATED INTO THE TWELVE MOST COMMON-
 LY SPOKEN LANGUAGES IN THE STATE.
   (F)  ANY  FUNDS  RECOUPED  OR REPAID PRIOR TO THE GRANTING OF A WAIVER
 UNDER THIS SECTION SHALL BE RETURNED TO THE CLAIMANT AS  PROVIDED  UNDER
 SUBDIVISION FIVE OF THIS SECTION.
   (7)  (A)  UPON  THE  DENIAL  OF  ANY WAIVER REQUEST, OR UPON ANY OTHER
 DETERMINATION BY THE COMMISSIONER OR A DECISION BY A REFEREE, THE APPEAL
 BOARD, OR A COURT THAT A CLAIMANT SHALL BE HELD LIABLE FOR ANY  OVERPAY-
 MENT,  THE  CLAIMANT  SHALL BE NOTIFIED IN WRITING, BY MAIL OR ELECTRON-
 ICALLY, WITHIN FIFTEEN DAYS OF SUCH DETERMINATION  OR  DECISION.    SUCH
 NOTICE  SHALL  SET  FORTH THE REASON FOR SUCH DENIAL, IF APPLICABLE, AND
 SUCH CLAIMANT'S RIGHT TO REQUEST AN ADJUSTMENT TO SUCH CLAIMANT'S REPAY-
 MENT SCHEDULE.
   (B) WHERE A WAIVER IS DENIED, THE CLAIMANT SHALL BE OFFERED  A  REPAY-
 MENT PLAN TO PAY DOWN THE AMOUNT OWED OVER A PERIOD OF TIME NO LESS THAN
 THREE YEARS. THE REPAYMENT PLAN SHALL BE BASED ON THE CLAIMANT'S ABILITY
 TO  REPAY.  AFTER SUCH THREE YEAR REPAYMENT PERIOD, THE DEPARTMENT SHALL
 WRITE OFF ANY FURTHER OVERPAYMENT DEBT REMAINING ON THE CLAIM.   NOTHING
 IN  THIS SECTION SHALL IMPEDE THE ABILITY OF THE DEPARTMENT TO DISCHARGE
 OR WAIVE ANY OVERPAYMENT.
   (C) THE COMMISSIONER SHALL  GRANT  AN  ADJUSTMENT  TO  THE  CLAIMANT'S
 REPAYMENT  SCHEDULE  IF  AT ANY TIME THE CLAIMANT IS ABLE TO DEMONSTRATE
 THAT THERE HAS BEEN A CHANGE  IN  SUCH  CLAIMANT'S  FINANCIAL  CONDITION
 WHICH  WARRANTS  SUCH ADJUSTMENT.  THE DEPARTMENT SHALL NOTIFY CLAIMANTS
 OF THE ABILITY TO SEEK A MODIFIED REPAYMENT PLAN  IN  WRITING  UPON  THE
 CLAIMANT'S ENTRY INTO A REPAYMENT PLAN.
   § 2. Subdivision 4 of section 597 of the labor law is REPEALED.
   §  3.  Paragraph (c) of subdivision 1 of section 600 of the labor law,
 as amended by section 19 of part O of chapter 57 of the laws of 2013, is
 amended to read as follows:
   (c) If, at the time benefits are payable, it has not been  established
 that  the claimant will be receiving such pension, retirement or retired
 pay, annuity or other payment, benefits due  shall  be  paid  without  a
 reduction,  subject to review within the period and under the conditions
 as provided in [subdivisions] SUBDIVISION three [and  four]  of  section
 five  hundred ninety-seven with respect to retroactive payment of remun-
 eration.
   § 4. Within ninety days of the effective date of this act, the depart-
 ment of labor shall provide claimants who have  previously  been  denied
 waivers  between  March 9, 2020, and the effective date of this act with
 applications for individual waivers. If it is found that the  department
 has collected benefits from a claimant as a result of the recovery of an
 overpayment  which would be barred under the provisions of this act, the
 S. 549--B                           5
 
 department shall refund such benefits to the claimant within thirty days
 of the approval of the waiver.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 9, 2020.

co-Sponsors

2023-S549C (ACTIVE) - Details

See Assembly Version of this Bill:: A3647
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Add §594-a, rpld §597 sub 4, Lab L
Versions Introduced in 2021-2022 Legislative Session:: S6169, A6666

2023-S549C (ACTIVE) - Summary

Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

2023-S549C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S549C

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the labor law, in relation to the recovery of overpay-
ments of unemployment benefits; to direct the department of labor to
provide claimants who have previously been denied waivers with applica-
tions for individual waivers; and to repeal certain provisions of such
law relating thereto

 
PURPOSE:

The purpose of this bill is to require the Commissioner of Labor to
waive certain overpayments of unemployment benefits that have occurred
during the COVID-19 pandemic, in addition to certain overpayments going
forward.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would establish that a claimant shall not be
held liable for overpayments of state or federal unemployment benefits,

as permitted under federal law, provided that the overpayment was not
due to fraud or fault on the part of the claimant and the recovery of
such overpayment would be against equity and good conscience. The
Commissioner of Labor would also be required to notify the claimant when
an overpayment has occurred and inform the claimant of his or her right
to request a waiver. Upon any denial of a waiver request, the Commis-
sioner would also be required to notify the claimant of his or her right
to request an adjustment to the repayment schedule.

Section two of the bill would repeal subdivision 4 of section 597 of the
Labor Law which sets forth the current limits for overpayments of bene-
fits.

Section three of the bill would establish the effective date.

 
JUSTIFICATION:

Overpayments of unemployment insurance benefits have become a signif-
icant problem for both claimants and state unemployment agencies
throughout the country in the wake of major job losses caused by the
COVID-19 pandemic. According to the U.S. Department of Labor, New York
paid out approximately $70 billion in unemployment benefits in 2020
including roughly $115 million in overpayments, while other states
across the country paid a combined $2.9 billion in overpayments. To
address these concerns, the federal government has allowed states to
waive repayments of benefits, including Pandemic Unemployment Assistance
benefits, that are found to be without fault on the part of the claimant
and when such repayment would be contrary to equity and good conscience.

Under current New York State law, state unemployment benefits which are
later determined to have been overpaid cannot be recovered from the
claimant as long as the claimant received the benefits in good faith,
did not make a false statement or representation, and did not willfully
conceal any pertinent fact in connection with his or her claim. However,
despite these requirements, data from the U.S.  Department of Labor
shows that as of March 1, 2021, the State has not granted any waivers
for overpayments throughout the duration of the pandemic, and yet has
continued to recover a total of $93.4 million in overpaid benefits
during 2020.

The enormous rise in unemployment claims during the COVID-19 pandemic
has only exacerbated the ongoing issues with the New York State unem-
ployment system and the overpayment of benefits. Amid the confusion of
businesses closing, people losing their jobs, and navigating the
outdated and complex UI system, it is reasonable to understand how some
individuals might have made honest mistakes and unintentional errors on
their unemployment applications, with no intent to defraud the system.
And yet, as our economy moves forward to recover from the impacts of the
pandemic, many of these claimants are now being asked to pay back debts
and penalties that they never knew had incurred in the first place. To
address these inequities, this bill would allow claimants that have been
overpaid benefits to which they were not entitled during the COVID-19
pandemic to apply for a waiver to have these overpayments forgiven.
Going forward, claimants would also not be held liable for overpayments
of state or federal unemployment benefits, as permitted under federal
law, provided that the overpayment was not due to fraud or fault on the
part of the claimant and the recovery of such overpayment would be
against equity and good conscience.

 
LEGISLATIVE HISTORY:

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after March 9, 2020.

2023-S549C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  549--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced by Sens. HOYLMAN-SIGAL, FERNANDEZ, JACKSON, KRUEGER, RAMOS --
   read  twice  and  ordered printed, and when printed to be committed to
   the Committee on Labor -- committee discharged, bill amended,  ordered
   reprinted  as amended and recommitted to said committee -- recommitted
   to the Committee on Labor in accordance with Senate Rule 6, sec. 8  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- reported favorably from said  commit-
   tee and committed to the Committee on Finance -- committee discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the labor law, in relation to the recovery  of  overpay-
   ments  of  unemployment benefits; to direct the department of labor to
   provide claimants who have previously been denied waivers with  appli-
   cations  for  individual  waivers; and to repeal certain provisions of
   such law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The labor law is amended by adding a new section 594-a to
 read as follows:
   § 594-A. RECOVERY OF OVERPAYMENTS. (1) DEFINITIONS. FOR  THE  PURPOSES
 OF THIS SECTION:
   (A)  "WITHOUT  FAULT"  MEANS  THE CLAIMANT DID NOT, WITH THE INTENT TO
 RECEIVE BENEFITS, INTENTIONALLY SUPPLY FALSE  INFORMATION  OR  KNOWINGLY
 OMIT  INFORMATION,  WHICH  DIRECTLY  RESULTED  IN THE DEPARTMENT ISSUING
 BENEFITS TO WHICH THE CLAIMANT KNEW THEY WERE NOT ENTITLED;
   (B) "FINAL DETERMINATION" MEANS THIRTY DAYS AFTER APPEAL  RIGHTS  HAVE
 BEEN EXHAUSTED OR ABANDONED.
   (C)  "WILLFUL MISREPRESENTATION" OR "WILLFUL FALSE STATEMENT" MEANS AN
 INTENTIONAL, KNOWING, OR  DELIBERATELY  FALSE  REPRESENTATION  FROM  THE
 CLAIMANT  TO THE DEPARTMENT, MADE IN ORDER TO OBTAIN UNEMPLOYMENT INSUR-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02352-10-4
 S. 549--C                           2

 
 ANCE BENEFITS. "KNOWING" FOR THE PURPOSES OF THIS PARAGRAPH MEANS HAVING
 ACTUAL KNOWLEDGE.
   (2)  NOTWITHSTANDING ANY PROVISION OF SECTION FIVE HUNDRED NINETY-FOUR
 OF THIS TITLE TO THE CONTRARY, ANY CLAIMANT WHO  HAS  RECEIVED  BENEFITS
 UNDER THE PROVISIONS OF THIS ARTICLE ON OR AFTER JANUARY TWENTY-SEVENTH,
 TWO  THOUSAND  TWENTY, TO WHICH THEY WERE NOT ENTITLED SHALL NOT BE HELD
 LIABLE FOR THE AMOUNTS OVERPAID  PROVIDED  THAT  ALL  OF  THE  FOLLOWING
 CONDITIONS EXIST:
   (A)  SUCH  OVERPAYMENT  WAS  NOT  DUE  TO A WILLFUL FALSE STATEMENT OR
 MISREPRESENTATION;
   (B) SUCH OVERPAYMENT WAS RECEIVED WITHOUT FAULT ON  THE  PART  OF  THE
 CLAIMANT; AND
   (C)  THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   (3) WHEN DETERMINING WHETHER AN OVERPAYMENT WAS RECEIVED WITHOUT FAULT
 ON THE PART OF THE CLAIMANT, THE COMMISSIONER SHALL CONSIDER THE FOLLOW-
 ING FACTORS:
   (A) THE NATURE AND CAUSE OF SUCH OVERPAYMENT AND THE CAPACITY  OF  THE
 CLAIMANT TO RECOGNIZE THE ERROR RESULTING IN SUCH OVERPAYMENT;
   (B)  WHETHER  THE  CLAIMANT  KNEW OR REASONABLY SHOULD HAVE KNOWN THAT
 SUCH CLAIMANT WAS NOT LAWFULLY ENTITLED TO RECEIVE SUCH BENEFITS;
   (C) WHETHER THE BENEFITS WERE RECEIVED  OR  RETAINED  BECAUSE  OF  THE
 CLAIMANT'S  GOOD  FAITH  RELIANCE  ON  AN ADMINISTRATIVE OR DEPARTMENTAL
 ERROR; AND
   (D) WHETHER THE CLAIMANT WILLFULLY REPORTED OR FAILED TO REPORT INFOR-
 MATION WHICH RESULTED IN SUCH OVERPAYMENT.
   (4) (A) THERE SHALL BE A PRESUMPTION  THAT  THE  CLAIMANT  IS  WITHOUT
 FAULT IF:
   (I) THE DEPARTMENT PROVIDED CONFLICTING, CHANGING, OR CONFUSING INFOR-
 MATION OR INSTRUCTIONS;
   (II)  THE  DEPARTMENT TOOK MORE THAN SIX MONTHS TO IMPLEMENT A FEDERAL
 LAW REGARDING PROOF OF ELIGIBILITY FROM CLAIMANTS;
   (III) THE CLAIMANT WAS UNABLE TO REACH THE  DEPARTMENT  DESPITE  THEIR
 BEST  EFFORTS TO INQUIRE OR CLARIFY INFORMATION THE INDIVIDUAL NEEDED TO
 PROVIDE DUE TO LANGUAGE,  EDUCATION,  LITERACY,  DISABILITY  OR  SIMILAR
 BARRIERS;
   (IV) THE CLAIMANT WAS UNABLE TO UNDERSTAND THE DEPARTMENT'S NOTICES OR
 DIRECTIVES  DUE  TO  LANGUAGE,  EDUCATION, LITERACY, DISABILITY OR OTHER
 SIMILAR BARRIERS;
   (V) THE CLAIMANT CHOSE A REASON FOR SEPARATION WHICH IS LEGALLY INCOR-
 RECT, THOUGH REASONABLE FOR THE CLAIMANT  TO  HAVE  SELECTED  UNDER  THE
 CIRCUMSTANCES; OR
   (VI)  THE  CLAIMANT  HAD  ASSISTANCE IN FILING A CLAIM, CERTIFYING, OR
 OTHERWISE RESPONDING TO THE DEPARTMENT AND THE CLAIMANT'S ASSISTANT  DID
 NOT CONFIRM REQUIRED INFORMATION WITH THE CLAIMANT OR MISUNDERSTOOD SUCH
 INFORMATION  PROVIDED  BY THE CLAIMANT, RESULTING IN INACCURATE INFORMA-
 TION BEING SUBMITTED WITHOUT THE CLAIMANT'S KNOWLEDGE.
   (B) THERE SHALL BE A PRESUMPTION THAT THE PAYMENT OF BENEFITS IS WITH-
 OUT FAULT IF THE OVERPAYMENT WAS DUE TO AGENCY ERROR OR MISTAKE  OR  THE
 EMPLOYER   PROVIDED   INCORRECT  OR  UNTIMELY  INFORMATION.  RECEIPT  OR
 POSSESSION OF THE CLAIMANTS' UNEMPLOYMENT INSURANCE HANDBOOK  SHALL  NOT
 CREATE  A  PRESUMPTION THAT THE CLAIMANT WAS ON NOTICE OF THE HANDBOOK'S
 CONTENTS NOR SHALL RECEIPT OR POSSESSION OF THE HANDBOOK BE USED AGAINST
 THE CLAIMANT ON POINTS OF FACT OR LAW.
   (5) RECOVERY OF ANY OVERPAYMENT  WOULD  BE  AGAINST  EQUITY  AND  GOOD
 CONSCIENCE IF:
 S. 549--C                           3
 
   (A)  RECOVERY  WOULD  CAUSE FINANCIAL HARDSHIP TO THE PERSON FROM WHOM
 RECOVERY IS SOUGHT;
   (B)  THE  RECIPIENT  OF  THE OVERPAYMENT CAN SHOW, REGARDLESS OF THEIR
 FINANCIAL SITUATION, THAT REPAYMENT WOULD CAUSE  THEM  TO  RELINQUISH  A
 VALUABLE  RIGHT  OR  CHANGE THEIR POSITION FOR THE WORSE, INCLUDING, BUT
 NOT LIMITED TO, SIGNING A LEASE, TAKING OUT A LOAN, OR  DECLINING  OTHER
 STATE  OR  FEDERAL  ASSISTANCE  IN  RELIANCE  ON RECEIPT OF UNEMPLOYMENT
 INSURANCE BENEFITS;
   (C) THE INDIVIDUAL OR THEIR HOUSEHOLD RECEIVES SOCIAL SECURITY INCOME,
 SUPPLEMENTAL SECURITY  INCOME,  SOCIAL  SECURITY  DISABILITY,  MEDICAID,
 MEDICARE,  FREE  OR  REDUCED PUBLIC SCHOOL LUNCH, FIP, TEMPORARY ASSIST-
 ANCE, SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM  BENEFITS,  NUTRITION
 BENEFITS  PROVIDED AS PART OF THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
 FOR WOMEN, INFANTS AND CHILDREN (WIC), HOME  ENERGY  ASSISTANCE  PROGRAM
 BENEFITS,  SENIOR  CITIZEN  RENT  INCREASE  EXEMPTION,  DISABILITY  RENT
 INCREASE EXEMPTION, RENTAL SUBSIDY PURSUANT TO FEDERAL OR STATE LAW,  IS
 AT  OR  BELOW  FOUR HUNDRED PERCENT OF THE FEDERAL POVERTY GUIDELINES OR
 LIVING IN PROJECT-BASED SUBSIDIZED HOUSING OR ANY  SUBSTANTIALLY  EQUIV-
 ALENT SUCCESSOR PROGRAMS TO THE AFOREMENTIONED BENEFITS PROGRAMS;
   (D)  THE INDIVIDUAL USED THE UNEMPLOYMENT BENEFITS TO MEET THEIR ORDI-
 NARY LIVING EXPENSES, INCLUDING, BUT NOT LIMITED TO, FOOD, RENT, MEDICAL
 COSTS OR INSURANCE, DENTAL BILLS  OR  INSURANCE,  SCHOOL  LOANS,  SCHOOL
 FEES, UTILITIES, CHILD CARE, MORTGAGE PAYMENTS, TRANSPORTATION, PURCHASE
 OR  MAINTENANCE  OF A CAR OR EQUIPMENT NEEDED FOR EMPLOYMENT OR SELF-EM-
 PLOYMENT, OR OPERATING EXPENSES FOR SELF-EMPLOYMENT; OR
   (E) THERE IS ANY OTHER REASON FOR WHICH RECOVERY  OF  THE  OVERPAYMENT
 WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE UNDER THE CIRCUMSTANCES.
   (6) (A) IN THE EVENT THAT A NEW DETERMINATION BY THE COMMISSIONER OR A
 DECISION  BY  A  REFEREE,  THE  APPEAL  BOARD,  OR  A COURT RESULTS IN A
 DECREASE OR DENIAL OF ANY BENEFITS PREVIOUSLY ALLOWED, OR AT  ANY  OTHER
 TIME IT HAS BEEN DETERMINED THAT AN OVERPAYMENT HAS OCCURRED, THE CLAIM-
 ANT  SHALL  BE  NOTIFIED  IN  WRITING, BY MAIL OR ELECTRONICALLY, WITHIN
 FIFTEEN DAYS OF SUCH DETERMINATION OR DECISION OF SUCH CLAIMANT'S  RIGHT
 TO  APPEAL  SUCH  DETERMINATION  OR  DECISION AND TO REQUEST A WAIVER OF
 RECOVERY OF SUCH OVERPAYMENT. SUCH NOTICE SHALL INCLUDE, BUT  SHALL  NOT
 BE LIMITED TO:
   (I)  THE  TOTAL AMOUNT OF SUCH OVERPAYMENT AND THE CAUSE OF SUCH OVER-
 PAYMENT;
   (II) THE SCHEDULE OF REPAYMENT FOR SUCH AMOUNTS OVERPAID;
   (III) THE MEANS BY WHICH THE COMMISSIONER IS ENTITLED  TO  COLLECT  OR
 RECOVER SUCH OVERPAYMENT;
   (IV)  AN  EXPLANATION  OF THE CLAIMANT'S RIGHT TO APPEAL SUCH DETERMI-
 NATION OR DECISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
 ANY RULES AND REGULATIONS PROMULGATED THEREUNDER;
   (V) AN EXPLANATION OF THE STANDARDS BY WHICH A CLAIMANT SHALL  NOT  BE
 FOUND LIABLE FOR THE AMOUNTS OVERPAID, AS SET FORTH IN THIS SECTION;
   (VI) THE PROCESS BY WHICH THE CLAIMANT MAY REQUEST AND OBTAIN A WAIVER
 OF RECOVERY OF SUCH OVERPAYMENT, INCLUDING A COPY OF THE WAIVER APPLICA-
 TION; AND
   (VII)  THE  AMOUNT THAT IS WAIVED AND THE REASON WHY ANY OR ALL OF THE
 OVERPAYMENT WAS NOT WAIVED.
   (B) THE COMMISSIONER SHALL REVIEW EACH  WAIVER  REQUEST  IN  A  MANNER
 CONSISTENT  WITH THIS SECTION TO DETERMINE WHETHER THE CLAIMANT SHALL BE
 HELD LIABLE FOR ANY AMOUNTS OVERPAID. ANY CLAIMANT WHO IS FOUND  NOT  TO
 BE  LIABLE  FOR ANY AMOUNTS OVERPAID SHALL BE ENTITLED TO RECEIVE A FULL
 S. 549--C                           4
 
 WAIVER OF SUCH OVERPAYMENT AND ANY PREVIOUSLY IMPOSED PENALTIES ON  SUCH
 OVERPAYMENT MUST BE RESCINDED ACCORDINGLY.
   (C)  (I)  ANY  CLAIMANT WHO DISAGREES WITH A DETERMINATION REGARDING A
 WAIVER MAY REQUEST A HEARING WITHIN SIXTY DAYS OF RECEIPT OF THE  DETER-
 MINATION.
   (II)  CLAIMANTS  SHALL HAVE ALL APPEALS RIGHTS AS PROVIDED UNDER TITLE
 EIGHT OF THIS ARTICLE, EXCEPT THAT REFEREES MAY EXTEND  THE  TIME  FIXED
 FOR REQUESTING A HEARING UPON GOOD CAUSE SHOWN.
   (III) WHEN A DETERMINATION IS MADE THAT THE CLAIMANT WAS AT FAULT, THE
 REFEREE AND UNEMPLOYMENT INSURANCE APPEALS BOARD SHALL REVIEW THE DETER-
 MINATION OF FAULT AND ANY WILLFUL MISREPRESENTATIONS DE NOVO.
   (D)  THE  DEPARTMENT SHALL WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF
 THIS SECTION DEVELOP AND IMPLEMENT A  PROCESS  BY  WHICH  CLAIMANTS  MAY
 REQUEST AND OBTAIN AN INDIVIDUAL WAIVER APPLICATION BY PHONE, FAX, MAIL,
 AND  THROUGH THE DEPARTMENT'S TWO-WAY COMMUNICATION SYSTEM. THE APPLICA-
 TION SHALL BE MADE AVAILABLE TO ALL CLAIMANTS WITHOUT REGARD TO A DETER-
 MINATION OF FAULT OR WILLFULNESS IN THE RECEIPT OF THE CLAIMANT'S  OVER-
 PAYMENT.
   (E) ALL NOTIFICATIONS SHALL BE TRANSLATED INTO THE TWELVE MOST COMMON-
 LY SPOKEN LANGUAGES IN THE STATE.
   (F)  ANY  FUNDS  RECOUPED  OR REPAID PRIOR TO THE GRANTING OF A WAIVER
 UNDER THIS SECTION SHALL BE RETURNED TO THE CLAIMANT AS  PROVIDED  UNDER
 SUBDIVISION FIVE OF THIS SECTION.
   (7)  (A)  UPON  THE  DENIAL  OF  ANY WAIVER REQUEST, OR UPON ANY OTHER
 DETERMINATION BY THE COMMISSIONER OR A DECISION BY A REFEREE, THE APPEAL
 BOARD, OR A COURT THAT A CLAIMANT SHALL BE HELD LIABLE FOR ANY  OVERPAY-
 MENT,  THE  CLAIMANT  SHALL BE NOTIFIED IN WRITING, BY MAIL OR ELECTRON-
 ICALLY, WITHIN FIFTEEN DAYS OF SUCH DETERMINATION  OR  DECISION.    SUCH
 NOTICE  SHALL  SET  FORTH THE REASON FOR SUCH DENIAL, IF APPLICABLE, AND
 SUCH CLAIMANT'S RIGHT TO REQUEST AN ADJUSTMENT TO SUCH CLAIMANT'S REPAY-
 MENT SCHEDULE.
   (B) WHERE A WAIVER IS DENIED, THE CLAIMANT SHALL BE OFFERED  A  REPAY-
 MENT PLAN TO PAY DOWN THE AMOUNT OWED OVER A PERIOD OF TIME NO LESS THAN
 THREE YEARS. THE REPAYMENT PLAN SHALL BE BASED ON THE CLAIMANT'S ABILITY
 TO  REPAY.  AFTER SUCH THREE YEAR REPAYMENT PERIOD, THE DEPARTMENT SHALL
 WRITE OFF ANY FURTHER OVERPAYMENT DEBT REMAINING ON THE CLAIM.   NOTHING
 IN  THIS SECTION SHALL IMPEDE THE ABILITY OF THE DEPARTMENT TO DISCHARGE
 OR WAIVE ANY OVERPAYMENT.
   (C) THE COMMISSIONER SHALL  GRANT  AN  ADJUSTMENT  TO  THE  CLAIMANT'S
 REPAYMENT  SCHEDULE  IF  AT ANY TIME THE CLAIMANT IS ABLE TO DEMONSTRATE
 THAT THERE HAS BEEN A CHANGE  IN  SUCH  CLAIMANT'S  FINANCIAL  CONDITION
 WHICH  WARRANTS  SUCH ADJUSTMENT.  THE DEPARTMENT SHALL NOTIFY CLAIMANTS
 OF THE ABILITY TO SEEK A MODIFIED REPAYMENT PLAN  IN  WRITING  UPON  THE
 CLAIMANT'S ENTRY INTO A REPAYMENT PLAN.
   § 2. Subdivision 4 of section 597 of the labor law is REPEALED.
   §  3.  Paragraph (c) of subdivision 1 of section 600 of the labor law,
 as amended by section 19 of part O of chapter 57 of the laws of 2013, is
 amended to read as follows:
   (c) If, at the time benefits are payable, it has not been  established
 that  the claimant will be receiving such pension, retirement or retired
 pay, annuity or other payment, benefits due  shall  be  paid  without  a
 reduction,  subject to review within the period and under the conditions
 as provided in [subdivisions] SUBDIVISION three [and  four]  of  section
 five  hundred ninety-seven with respect to retroactive payment of remun-
 eration.
 S. 549--C                           5
 
   § 4.  Within 30 days of the effective date of this  act,  the  Commis-
 sioner  of  Labor  shall  seek a review of this act by the United States
 Department of Labor to determine the effect of this act on  the  ability
 of New York State to receive a cap and/or waiver on the reduction of tax
 credits,  otherwise known as the Benefit Cost Rate (BCR) penalty, pursu-
 ant to section 3302 of the Federal  Unemployment  Tax  Act  and  20  CFR
 606.20. As part of the request to review the act, the Commissioner shall
 ask  the  USDOL how the provisions of this act that allow for the waiver
 of the overpayments of  Federal  unemployment  or  assistance  benefits,
 alone,  including  Pandemic  Unemployment Assistance, Pandemic Emergency
 Unemployment Compensation and Federal Pandemic Unemployment Compensation
 shall effect the ability of New York State to receive a cap and/or waiv-
 er on the reduction of tax credits, otherwise known as the Benefit  Cost
 Rate (BCR) penalty, pursuant to section 3302 of the Federal Unemployment
 Tax Act and 20 CFR 606.20. Within one week of the receipt of the USDOL's
 review,  the  Commissioner  shall certify that this act will or will not
 prevent a cap and/or waiver of the BCR penalty and provide such  certif-
 ication  along with a copy of the USDOL's response to a request for such
 review to the Assembly and Senate Labor Committee  chairs.  As  part  of
 this  certification,  the  Commissioner  shall  state whether or not the
 provisions of this act that allow for the waiver of the overpayments  of
 Federal  unemployment  or assistance benefits, alone, including Pandemic
 Unemployment Assistance, Pandemic  Emergency  Unemployment  Compensation
 and  Federal Pandemic Unemployment Compensation will or will not prevent
 a cap and/or waiver of the BCR penalty. The Commissioner shall seek such
 review as of January 15 of each successive year until the sooner of  the
 Commissioner  certifying  that  this  act  will not prevent a cap and/or
 waiver of the BCR penalty or the State unemployment insurance trust fund
 becomes solvent.
   § 5. This act shall take effect  immediately  provided,  however  that
 sections  one, two and three shall take effect upon the certification by
 the Commissioner of Labor that this act will not prevent  a  cap  and/or
 waiver of the BCR penalty and shall be deemed to have been in full force
 and  effect  on  and  after March 9, 2020. If the Commissioner certifies
 that the provisions of this act that allow for the waiver of  the  over-
 payments  of  Federal  unemployment  or  assistance  benefits  including
 Pandemic  Unemployment  Assistance,  Pandemic   Emergency   Unemployment
 Compensation  and  Federal  Pandemic  Unemployment Compensation will not
 prevent a cap and/or waiver of the BCR penalty, those  provisions  shall
 take  effect  immediately and shall be deemed to have been in full force
 and effect on and after March 9, 2020. In the event that the Commission-
 er certifies that all provisions of this act will prevent a  cap  and/or
 waiver  of the BCR penalty, the provisions of this act shall take effect
 upon the solvency of the State unemployment compensation trust fund  and
 shall be deemed to have been in full force and effect on and after March
 9,  2020.  The  Commissioner  of Labor shall notify the legislative bill
 drafting commission upon the Commissioner's certification as required by
 this section in order that the commission may maintain an  accurate  and
 timely effective data base of the official text of the laws of the state
 of  New York in furtherance of effectuating the provisions of section 44
 of the legislative law and section 70-b of the public officers law.

Senate Bill S549

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

May 21, 2024 - Labor Committee Vote

Labor Committee Vote: May 21, 2024

Bill Amendments

2023-S549 - Details

2023-S549 - Summary

2023-S549 - Sponsor Memo

2023-S549 - Bill Text download pdf

co-Sponsors

2023-S549A - Details

2023-S549A - Summary

2023-S549A - Sponsor Memo

2023-S549A - Bill Text download pdf

co-Sponsors

2023-S549B - Details

2023-S549B - Summary

2023-S549B - Sponsor Memo

2023-S549B - Bill Text download pdf

co-Sponsors

2023-S549C (ACTIVE) - Details

2023-S549C (ACTIVE) - Summary

2023-S549C (ACTIVE) - Sponsor Memo

2023-S549C (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S549

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

Bill Amendments

2023-S549 - Details

2023-S549 - Summary

2023-S549 - Sponsor Memo

2023-S549 - Bill Text download pdf

co-Sponsors

2023-S549A - Details

2023-S549A - Summary

2023-S549A - Sponsor Memo

2023-S549A - Bill Text download pdf

co-Sponsors

2023-S549B - Details

2023-S549B - Summary

2023-S549B - Sponsor Memo

2023-S549B - Bill Text download pdf

co-Sponsors

2023-S549C (ACTIVE) - Details

2023-S549C (ACTIVE) - Summary

2023-S549C (ACTIVE) - Sponsor Memo

2023-S549C (ACTIVE) - Bill Text download pdf

Comments