NY State Senate Bill 2021-S6169

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to labor
Apr 13, 2021	referred to labor

2021-S6169 (ACTIVE) - Details

See Assembly Version of this Bill:: A6666
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add §594-a, rpld §597 sub 4, Lab L
Versions Introduced in 2023-2024 Legislative Session:: S549, A3647, A8928

2021-S6169 (ACTIVE) - Summary

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.

2021-S6169 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6169

SPONSOR: HOYLMAN
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to require the Commissioner of Labor to
waive certain overpayments of unemployment benefits that have occurred
during the COVID-19 pandemic, in addition to certain overpayments going
forward.

 
SUMMARY OF PROVISIONS:

Section one of the bill would establish that a claimant shall not be
held liable for overpayments of state or federal unemployment benefits,
as permitted under federal law, provided that the overpayment was not

due to fraud or fault on the part of the claimant and the recovery of
such overpayment would be against equity and good conscience. The
Commissioner of Labor would also be required to notify the claimant when
an overpayment has occurred and inform the claimant of his or her right
to request a waiver. Upon any denial of a waiver request, the Commis-
sioner would also be required to notify the claimant of his or her right
to request an adjustment to the repayment schedule.

Section two of the bill would repeal subdivision 4 of section 597 of the
Labor Law which sets forth the current limits for overpayments of bene-
fits.

Section three of the bill would establish the effective date.

 
JUSTIFICATION:

Overpayments of unemployment insurance benefits have become a signif-
icant problem for both claimants and state unemployment agencies
throughout the country in the wake of major job losses caused by the
COVID-19 pandemic. According to the U.S. Department of Labor, New York
paid out approximately $70 billion in unemployment benefits in 2020
including roughly $115 million in overpayments, while other states
across the country paid a combined $2.9 billion in overpayments. To
address these concerns, the federal government has allowed states to
waive repayments of benefits, including Pandemic Unemployment Assistance
benefits, that are found to be without fault on the part of the claimant
and when such repayment would be contrary to equity and good conscience.

Under current New York State law, state unemployment benefits which are
later determined to have been overpaid cannot be recovered from the
claimant as long as the claimant received the benefits in good faith,
did not make a false statement or representation, and did not willfully
conceal any pertinent fact in connection with his or her claim. However,
despite these requirements, data from the U.S.  Department of Labor
shows that as of March 1, 2021, the State has not granted any waivers
for overpayments throughout the duration of the pandemic, and yet has
continued to recover a total of $93.4 million in overpaid benefits
during 2020.
The enormous rise in unemployment claims during the COVID-19 pandemic
has only exacerbated the ongoing issues with the New York State unem-
ployment system and the overpayment of benefits. Amid the confusion of
businesses closing, people losing their jobs, and navigating the
outdated and complex UI system, it is reasonable to understand how some
individuals might have made honest mistakes and unintentional errors on
their unemployment applications, with no intent to defraud the system.
And yet, as our economy moves forward to recover from the impacts of the
pandemic, many of these claimants are now being asked to pay back debts
and penalties that they never knew had incurred in the first place. To
address these inequities, this bill would allow claimants that have been
overpaid benefits to which they were not entitled during the COVID-19
pandemic to apply for a waiver to have these overpayments forgiven.
Going forward, claimants would also not be held liable for overpayments
of state or federal unemployment benefits, as permitted under federal
law, provided that the overpayment was not due to fraud or fault on the
part of the claimant and the recovery of such overpayment would be
against equity and good conscience.

 
PRIOR LEGISLATIVE HISTORY:

None, new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after March 9, 2020.

2021-S6169 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6169
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 13, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed 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

 S. 6169                             2
 
   (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

 S. 6169                             3
 
 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S6169

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

2021-S6169 (ACTIVE) - Details

2021-S6169 (ACTIVE) - Summary

2021-S6169 (ACTIVE) - Sponsor Memo

2021-S6169 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6169

Share this bill

Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - In Senate Committee Labor Committee

2021-S6169 (ACTIVE) - Details

2021-S6169 (ACTIVE) - Summary

2021-S6169 (ACTIVE) - Sponsor Memo

2021-S6169 (ACTIVE) - Bill Text download pdf

Comments