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New Yorkers Must Return Thousands of Dollars in Unemployment Benefits Due to Department of Labor Error

'19.02.2021'

Lyudmila Balabay

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New Yorkers have faced a problem due to mistakes by the State Department of Labor in the issue of unemployment benefits. To some recipients, the agency transferred much larger amounts than it should have, and now New Yorkers are asked to return this money, writes CBS6 Albany.

Photo: Shutterstock

Thousands of New Yorkers were faced with the daunting task of getting back the unemployment benefits they felt they were entitled to.

According to a Times Union report, the New York State Department of Labor (NYSDOL) has awarded more than $ 114 million in benefits to non-eligible applicants. Labor lawyer Patrick Sorsby says he has received dozens of calls from people needing help with such cases.

“They did not question whether they were eligible for this benefit because everyone advised them to apply for this assistance, in particular their employers, and the Labor Department did not bother to explain to these people that they were not eligible for such financial assistance,” - explained the lawyer.

One applicant, who wished to remain anonymous, lamented that the Labor Department was expecting more than $ 5000 in debt from her. Now she needs to pay off this debt in monthly payments, otherwise she will have to face the courts and additional fines.

On the subject: Financial aid resources for New Yorkers: where and for what needs you can get money

Casting director Allison Frank noted that she, too, was the victim of a mistake. NYSDOL paid her more money than she owed. When she called the department to find out what to do now, they could not give her a concrete answer.

“They don't give me the opportunity to get this money back,” Frank said. "I called them, wrote by e-mail, they switch me to different people all the time."

Sorsby says the state will not be able to recover overpaid benefits unless it can prove the plaintiff falsified his claim to get more. That is, it must be proved that the plaintiff deliberately tried to mislead the department.

“Some of these people have been overpaid thousands of dollars, and now the state wants that money back. I don't think the problem is whether they can get the money back. They can, if they want to. But now the question is different - should they do it? In the midst of a difficult economic situation we are in, is it the right thing to do? Sorsby asks.

The New York State Department of Labor has not yet responded to requests for comment.

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