S T A T E O F N E W Y O R K
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2021-2022 Regular Sessions
I N A S S E M B L Y
March 24, 2021
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Introduced by M. of A. JOYNER -- read once and referred 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.
LBD10646-01-1
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(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
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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.