The U.S. Department of Labor issued guidance Monday to reduce the number of households asked to repay pandemic-era jobless benefits paid in error.
The U.S. Department of Labor issued guidance to states on Monday expanding the reasons for which they may waive an "overpayment" of CARES Act unemployment benefits paid in error.
In the early days of the Covid-19 pandemic, states implemented new federal benefit programs created by the CARES Act to support the jobless. However, the CARES Act didn't offer a safety valve for states to forgive overpayments. That essentially meant states had to try to collect the funds.earlier in the pandemic; Labor Department officials issued initial rules in May 2021 that let states waive collection in some cases, and asked states to refund any amounts already collected toward the overpayment.
"Anecdotally, we are hearing of states beginning to establish overpayments on claims from the pandemic that amount to tens of thousands of dollars owed over innocent mistakes," said Michele Evermore, a senior policy advisor for unemployment insurance at the Labor Department.
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