Hey, guys, it's Ginny Silver.
And today I want to talk to those of you who are waiting
more information on an overpayment waiver.
Back in December with the stimulus bill, we had a provision
that was optional for States to include an overpayment waiver
to Claimants that were paid more than they were allowed with
their Pandemic related programs and then were required to
pay some back, sometimes with a penalty.
Well, if the overpayment was no fault of your own, you did
not. It a false statement knowingly and it creates financial
hardship. Then an overpayment waiver was created as an option
while in the state of California.
The California EDD stated that they would be opting into
this program, but we have not heard any mention of it or
additional details since winter.
Yesterday, on May 5th, a Department of Labor released
new guidance on the implementation of overpayment waivers.
This answers the question of why Edd has not stated any additional
information about the overpayment waiver.
This additional guidance from the Department of Labor very
specifically outlines how the States can implement the overpayment
waivers. So I would anticipate that following the release
of this guidance that the California Edd will release some
sort of a statement and an upcoming press release that more
information on overpayment waivers is available.
I want to go through the Department of Labor guidance for
you so that you can see the program details and what the
Department of Labor is allowing the States to choose from
in terms of how they are implementing the overpayment waivers.
Keep in mind that the California Edd will need to determine
exactly how they are going to be implementing this based
on the options of the Department of Labor provides once California
Edd decides how they're going to implement this and shares
exactly their own specific program.
Now, first up, this only applies to Pandemic related programs,
Pua, FPUC, which is the 300 dollars boost mixed earners compensation,
which is MEUC, which is not yet up and running in California
and PEUC.
It also applies to the first week of regular unemployment
compensation. Why only the first week of regular unemployment?
Because the first week is the pandemic federally funded week
of unemployment compensation so that there wasn't a gap in
a waiting period after you apply.
Now they stay here under waving Recovery of Over Payment
of Cares Act programs.
Federal law sets out the authority to waive recovery of overpayments
under certain circumstances for PUA, FPUC MEUC, PEUC in the first
week of unemployment compensation.
It is a matter of state discretion whether to exercise this
waiver authority, so it is optional for States to implement
this. It is not required.
A state may only waive repayment of an overpayment if the
state determines that number one, the payment of such compensation
was without fault on the part of any such individual.
And number two, such repayment would be contrary to equity
and good conscience.
They then go on to define what equity and good conscience
means means that it would cause financial hardship to the
person for whom it is sought.
Or the recipient of the overpayment can show, regardless
of their financial circumstances, that due to the notice
that such payment would be made, or because of the incorrect
payment, either they have relinquished a valuable right or
change positions for the worse, or recovery would be unconscionable
under the circumstances.
Now, the state can choose to either automatically determine
if this applies to every overpayment case, or they can provide
individuals with the ability to make a request.
These guidelines also lay out a provision for States to apply
blanket waiver, which means that the States may approve a
waiver of recovery for over pants using a single set of facts
which they are calling a blanket waiver.
There are two specific circumstances where States can provide
a blanket waiver.
Number one would be when an individual is eligible for payment
under an unemployment benefit program for a given week, but
through no fault of the individual, they were paid incorrectly
under either the PUA or FPUC program at a higher weekly benefit
award amount.
The state can also apply a blanket waiver if specific to
PUA claims, when, through no fault of the individual, the
state paid the individual a minimum weekly benefit reward.
Based on DUA guidance, the States must choose from three
different options.
They can choose number one, to not implement the overpayment
waiver option at all.
Or they can choose to exercise the waiver and not process
blanket waivers.
Or they can choose to exercise the waiver and process blanket
waivers. The state is opting into overpayment waivers.
Then they must notify all individuals with a non fault overpayment
of their ability to request a waiver.
If they are opting into using blanket waivers after they
assess and apply all of their blanket waivers, then they
need to alert anyone who was not covered under a blanket
waiver that they may request an overpayment waiver.
States also must, upon receipt of the waiver request, pause
further collections until a determination of waiver eligibility
is made.
That means that if you apply for an overpayment waiver while
that application is in process, the state cannot collect
any further overpayments from you until they determine a
decision. Some of you may have already paid back over payments
and you may be eligible for an overpayment waiver.
What this States here is that the state must refund any amounts
that were collected towards the applicable overpayment prior
to the determination of waiver eligibility.
But they do state here that given the many demands of state
agencies, it may take, for example, up to a year for the
States to program their computer systems and notify individuals
before they process such refunds.
Okay, you guys.
So now that the Edd has this guidance from the Department
of Labor, I would hope that we would see something in a Press
release in upcoming weeks about more information about specifics
to how California will be implementing the overpayment Labor.
I hope that was helpful.
Please Click Like Subscribe and leave me a comment down below.