Bill Text: NY A08928 | 2023-2024 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced) 2024-05-28 - reported referred to ways and means [A08928 Detail]
Download: New_York-2023-A08928-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8928--C IN ASSEMBLY January 30, 2024 ___________ Introduced by M. of A. BRONSON, SHRESTHA, COLTON, LUCAS, JACOBSON -- read once and referred to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported and referred to the Committee on Codes -- 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: 1 Section 1. The labor law is amended by adding a new section 594-a to 2 read as follows: 3 § 594-a. Recovery of overpayments. (1) Definitions. For the purposes 4 of this section: 5 (a) "Without fault" means the claimant did not, with the intent to 6 receive benefits, intentionally supply false information or knowingly 7 omit information, which directly resulted in the department issuing 8 benefits to which the claimant knew they were not entitled; 9 (b) "Final determination" means thirty days after appeal rights have 10 been exhausted or abandoned. 11 (c) "Willful misrepresentation" or "willful false statement" means an 12 intentional, knowing, or deliberately false representation from the 13 claimant to the department, made in order to obtain unemployment insur- 14 ance benefits. "Knowing" for the purposes of this paragraph means having 15 actual knowledge. 16 (2) Notwithstanding any provision of section five hundred ninety-four 17 of this title to the contrary, any claimant who has received benefits 18 under the provisions of this article on or after January twenty-seventh, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02352-09-4A. 8928--C 2 1 two thousand twenty, to which they were not entitled shall not be held 2 liable for the amounts overpaid provided that all of the following 3 conditions exist: 4 (a) Such overpayment was not due to a willful false statement or 5 misrepresentation; 6 (b) Such overpayment was received without fault on the part of the 7 claimant; and 8 (c) The recovery of such overpayment would be against equity and good 9 conscience. 10 (3) When determining whether an overpayment was received without fault 11 on the part of the claimant, the commissioner shall consider the follow- 12 ing factors: 13 (a) The nature and cause of such overpayment and the capacity of the 14 claimant to recognize the error resulting in such overpayment; 15 (b) Whether the claimant knew or reasonably should have known that 16 such claimant was not lawfully entitled to receive such benefits; 17 (c) Whether the benefits were received or retained because of the 18 claimant's good faith reliance on an administrative or departmental 19 error; and 20 (d) Whether the claimant willfully reported or failed to report infor- 21 mation which resulted in such overpayment. 22 (4) (a) There shall be a presumption that the claimant is without 23 fault if: 24 (i) the department provided conflicting, changing, or confusing infor- 25 mation or instructions; 26 (ii) the department took more than six months to implement a federal 27 law regarding proof of eligibility from claimants; 28 (iii) the claimant was unable to reach the department despite their 29 best efforts to inquire or clarify information the individual needed to 30 provide due to language, education, literacy, disability or similar 31 barriers; 32 (iv) the claimant was unable to understand the department's notices or 33 directives due to language, education, literacy, disability or other 34 similar barriers; 35 (v) the claimant chose a reason for separation which is legally incor- 36 rect, though reasonable for the claimant to have selected under the 37 circumstances; or 38 (vi) the claimant had assistance in filing a claim, certifying, or 39 otherwise responding to the department and the claimant's assistant did 40 not confirm required information with the claimant or misunderstood such 41 information provided by the claimant, resulting in inaccurate informa- 42 tion being submitted without the claimant's knowledge. 43 (b) There shall be a presumption that the payment of benefits is with- 44 out fault if the overpayment was due to agency error or mistake or the 45 employer provided incorrect or untimely information. Receipt or 46 possession of the claimants' unemployment insurance handbook shall not 47 create a presumption that the claimant was on notice of the handbook's 48 contents nor shall receipt or possession of the handbook be used against 49 the claimant on points of fact or law. 50 (5) Recovery of any overpayment would be against equity and good 51 conscience if: 52 (a) recovery would cause financial hardship to the person from whom 53 recovery is sought; 54 (b) the recipient of the overpayment can show, regardless of their 55 financial situation, that repayment would cause them to relinquish a 56 valuable right or change their position for the worse, including, butA. 8928--C 3 1 not limited to, signing a lease, taking out a loan, or declining other 2 state or federal assistance in reliance on receipt of unemployment 3 insurance benefits; 4 (c) the individual or their household receives social security income, 5 supplemental security income, social security disability, medicaid, 6 medicare, free or reduced public school lunch, FIP, temporary assist- 7 ance, supplemental nutrition assistance program benefits, nutrition 8 benefits provided as part of the special supplemental nutrition program 9 for women, infants and children (WIC), home energy assistance program 10 benefits, senior citizen rent increase exemption, disability rent 11 increase exemption, rental subsidy pursuant to federal or state law, is 12 at or below four hundred percent of the federal poverty guidelines or 13 living in project-based subsidized housing or any substantially equiv- 14 alent successor programs to the aforementioned benefits programs; 15 (d) the individual used the unemployment benefits to meet their ordi- 16 nary living expenses, including, but not limited to, food, rent, medical 17 costs or insurance, dental bills or insurance, school loans, school 18 fees, utilities, child care, mortgage payments, transportation, purchase 19 or maintenance of a car or equipment needed for employment or self-em- 20 ployment, or operating expenses for self-employment; or 21 (e) there is any other reason for which recovery of the overpayment 22 would be against equity and good conscience under the circumstances. 23 (6) (a) In the event that a new determination by the commissioner or a 24 decision by a referee, the appeal board, or a court results in a 25 decrease or denial of any benefits previously allowed, or at any other 26 time it has been determined that an overpayment has occurred, the claim- 27 ant shall be notified in writing, by mail or electronically, within 28 fifteen days of such determination or decision of such claimant's right 29 to appeal such determination or decision and to request a waiver of 30 recovery of such overpayment. Such notice shall include, but shall not 31 be limited to: 32 (i) The total amount of such overpayment and the cause of such over- 33 payment; 34 (ii) The schedule of repayment for such amounts overpaid; 35 (iii) The means by which the commissioner is entitled to collect or 36 recover such overpayment; 37 (iv) An explanation of the claimant's right to appeal such determi- 38 nation or decision in accordance with the provisions of this article and 39 any rules and regulations promulgated thereunder; 40 (v) An explanation of the standards by which a claimant shall not be 41 found liable for the amounts overpaid, as set forth in this section; 42 (vi) The process by which the claimant may request and obtain a waiver 43 of recovery of such overpayment, including a copy of the waiver applica- 44 tion; and 45 (vii) the amount that is waived and the reason why any or all of the 46 overpayment was not waived. 47 (b) The commissioner shall review each waiver request in a manner 48 consistent with this section to determine whether the claimant shall be 49 held liable for any amounts overpaid. Any claimant who is found not to 50 be liable for any amounts overpaid shall be entitled to receive a full 51 waiver of such overpayment and any previously imposed penalties on such 52 overpayment must be rescinded accordingly. 53 (c) (i) Any claimant who disagrees with a determination regarding a 54 waiver may request a hearing within sixty days of receipt of the deter- 55 mination.A. 8928--C 4 1 (ii) Claimants shall have all appeals rights as provided under title 2 eight of this article, except that referees may extend the time fixed 3 for requesting a hearing upon good cause shown. 4 (iii) When a determination is made that the claimant was at fault, the 5 referee and unemployment insurance appeals board shall review the deter- 6 mination of fault and any willful misrepresentations de novo. 7 (d) The department shall within thirty days of the effective date of 8 this section develop and implement a process by which claimants may 9 request and obtain an individual waiver application by phone, fax, mail, 10 and through the department's two-way communication system. The applica- 11 tion shall be made available to all claimants without regard to a deter- 12 mination of fault or willfulness in the receipt of the claimant's over- 13 payment. 14 (e) All notifications shall be translated into the twelve most common- 15 ly spoken languages in the state. 16 (f) Any funds recouped or repaid prior to the granting of a waiver 17 under this section shall be returned to the claimant as provided under 18 subdivision five of this section. 19 (7) (a) Upon the denial of any waiver request, or upon any other 20 determination by the commissioner or a decision by a referee, the appeal 21 board, or a court that a claimant shall be held liable for any overpay- 22 ment, the claimant shall be notified in writing, by mail or electron- 23 ically, within fifteen days of such determination or decision. Such 24 notice shall set forth the reason for such denial, if applicable, and 25 such claimant's right to request an adjustment to such claimant's repay- 26 ment schedule. 27 (b) Where a waiver is denied, the claimant shall be offered a repay- 28 ment plan to pay down the amount owed over a period of time no less than 29 three years. The repayment plan shall be based on the claimant's ability 30 to repay. After such three year repayment period, the department shall 31 write off any further overpayment debt remaining on the claim. Nothing 32 in this section shall impede the ability of the department to discharge 33 or waive any overpayment. 34 (c) The commissioner shall grant an adjustment to the claimant's 35 repayment schedule if at any time the claimant is able to demonstrate 36 that there has been a change in such claimant's financial condition 37 which warrants such adjustment. The department shall notify claimants 38 of the ability to seek a modified repayment plan in writing upon the 39 claimant's entry into a repayment plan. 40 § 2. Subdivision 4 of section 597 of the labor law is REPEALED. 41 § 3. Paragraph (c) of subdivision 1 of section 600 of the labor law, 42 as amended by section 19 of part O of chapter 57 of the laws of 2013, is 43 amended to read as follows: 44 (c) If, at the time benefits are payable, it has not been established 45 that the claimant will be receiving such pension, retirement or retired 46 pay, annuity or other payment, benefits due shall be paid without a 47 reduction, subject to review within the period and under the conditions 48 as provided in [subdivisions] subdivision three [and four] of section 49 five hundred ninety-seven with respect to retroactive payment of remun- 50 eration. 51 § 4. Within ninety days of the effective date of this act, the depart- 52 ment of labor shall provide claimants who have previously been denied 53 waivers between March 9, 2020, and the effective date of this act with 54 applications for individual waivers. If it is found that the department 55 has collected benefits from a claimant as a result of the recovery of an 56 overpayment which would be barred under the provisions of this act, theA. 8928--C 5 1 department shall refund such benefits to the claimant within thirty days 2 of the approval of the waiver. 3 § 5. This act shall take effect immediately and shall be deemed to 4 have been in full force and effect on and after March 9, 2020.
