No path forward for pandemic-era waivers of overpayments
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CHARLESTON -- While billions of dollars of fraud likely occurred nationwide due to unemployment benefits paid out during the COVID-19 pandemic, in many cases states overpaid unemployment benefits to out-of-work residents due to no fault of their own.
Now, West Virginia officials are attempting to claw back some of those overpayments of pandemic-era unemployment benefits more than a year after a waiver program meant to forgive those overpayments expired, leaving some recipients of unemployment benefits nearly three years ago unable to repay or unable to show documentation that they were not overpaid benefits.
According to WorkForce West Virginia, officials have identified 251 overpayments of unemployment benefits since Feb. 17, 2022, when an executive order by Gov. Jim Justice allowing WorkForce West Virginia to waive the recovery of non-fraudulent overpayment of unemployment benefits expired.
"The primary cause of the overpayments is due to those receiving benefits failing to report earnings accurately for weeks in which they received unemployment benefits or due to fraudulent misrepresentation, all of which were discovered through claim audits conducted by WorkForce West Virginia's Fraud/Integrity Unit," Andy Malinoski, a spokesperson for WorkForce West Virginia, said.
Justice signed the executive order on March 29, 2021, allowing for the waiver of collection of non-fraudulent overpayments of unemployment benefits distributed through the federal Coronavirus Aid, Relief and Economic Security Act, the American Rescue Act, the 2021 Consolidated Appropriations Act, the 2020 Continued Assistance for Unemployed Workers Act and other subsequent federal legislation meant to provide relief to unemployed workers.
"Some overpayments are waivable, but to be eligible for a waiver of overpayment, it must be determined that the overpayment was received without fault on the part of the claimant," Malinoski said.
But the window for those who received pandemic-era overpayments of unemployment benefits to have those non-fraudulent overpayments waived by WorkForce West Virginia is closed. According to a letter sent at the end of August to a recipient of unemployment benefits who declined to be identified, WorkForce West Virginia is seeking additional information regarding a March 18, 2020, unemployment claim. The respondent had until Sept. 5 to contact WorkForce West Virginia's Crossmatch Unit.
"Failure to do so could result in a decision being made with the available information which could result in an overpayment," according to the letter.
"The letters outline the formal process for investigating these overpayments and determining the proper course of action," Malinoski said. "Workforce WV takes its fraud identification and mitigation responsibility very seriously and works diligently to prevent improper use of state or federal money."