Bill Text: NY S00444 | 2025-2026 | General Assembly | Introduced
Bill Title: 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; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced) 2025-01-08 - REFERRED TO LABOR [S00444 Detail]
Download: New_York-2025-S00444-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 444 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. HOYLMAN-SIGAL -- 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; to direct the department of labor to provide claimants who have previously been denied waivers with appli- cations for individual waivers; 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: 1 Section 1. The labor law is amended by adding a new section 594-a to 2 read as follows: 3 § 594-a. Recovery of overpayments. (1) Definitions. For the purposes 4 of this section: 5 (a) "Without fault" means the claimant did not, with the intent to 6 receive benefits, intentionally supply false information or knowingly 7 omit information, which directly resulted in the department issuing 8 benefits to which the claimant knew they were not entitled; 9 (b) "Final determination" means thirty days after appeal rights have 10 been exhausted or abandoned. 11 (c) "Willful misrepresentation" or "willful false statement" means an 12 intentional, knowing, or deliberately false representation from the 13 claimant to the department, made in order to obtain unemployment insur- 14 ance benefits. "Knowing" for the purposes of this paragraph means having 15 actual knowledge. 16 (2) Notwithstanding any provision of section five hundred ninety-four 17 of this title to the contrary, any claimant who has received benefits 18 under the provisions of this article on or after January twenty-seventh, 19 two thousand twenty, to which they were not entitled shall not be held 20 liable for the amounts overpaid provided that all of the following 21 conditions exist: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01904-01-5S. 444 2 1 (a) Such overpayment was not due to a willful false statement or 2 misrepresentation; 3 (b) Such overpayment was received without fault on the part of the 4 claimant; and 5 (c) The recovery of such overpayment would be against equity and good 6 conscience. 7 (3) When determining whether an overpayment was received without fault 8 on the part of the claimant, the commissioner shall consider the follow- 9 ing factors: 10 (a) The nature and cause of such overpayment and the capacity of the 11 claimant to recognize the error resulting in such overpayment; 12 (b) Whether the claimant knew or reasonably should have known that 13 such claimant was not lawfully entitled to receive such benefits; 14 (c) Whether the benefits were received or retained because of the 15 claimant's good faith reliance on an administrative or departmental 16 error; and 17 (d) Whether the claimant willfully reported or failed to report infor- 18 mation which resulted in such overpayment. 19 (4) (a) There shall be a presumption that the claimant is without 20 fault if: 21 (i) the department provided conflicting, changing, or confusing infor- 22 mation or instructions; 23 (ii) the department took more than six months to implement a federal 24 law regarding proof of eligibility from claimants; 25 (iii) the claimant was unable to reach the department despite their 26 best efforts to inquire or clarify information the individual needed to 27 provide due to language, education, literacy, disability or similar 28 barriers; 29 (iv) the claimant was unable to understand the department's notices or 30 directives due to language, education, literacy, disability or other 31 similar barriers; 32 (v) the claimant chose a reason for separation which is legally incor- 33 rect, though reasonable for the claimant to have selected under the 34 circumstances; or 35 (vi) the claimant had assistance in filing a claim, certifying, or 36 otherwise responding to the department and the claimant's assistant did 37 not confirm required information with the claimant or misunderstood such 38 information provided by the claimant, resulting in inaccurate informa- 39 tion being submitted without the claimant's knowledge. 40 (b) There shall be a presumption that the payment of benefits is with- 41 out fault if the overpayment was due to agency error or mistake or the 42 employer provided incorrect or untimely information. Receipt or 43 possession of the claimants' unemployment insurance handbook shall not 44 create a presumption that the claimant was on notice of the handbook's 45 contents nor shall receipt or possession of the handbook be used against 46 the claimant on points of fact or law. 47 (5) Recovery of any overpayment would be against equity and good 48 conscience if: 49 (a) recovery would cause financial hardship to the person from whom 50 recovery is sought; 51 (b) the recipient of the overpayment can show, regardless of their 52 financial situation, that repayment would cause them to relinquish a 53 valuable right or change their position for the worse, including, but 54 not limited to, signing a lease, taking out a loan, or declining other 55 state or federal assistance in reliance on receipt of unemployment 56 insurance benefits;S. 444 3 1 (c) the individual or their household receives social security income, 2 supplemental security income, social security disability, medicaid, 3 medicare, free or reduced public school lunch, FIP, temporary assist- 4 ance, supplemental nutrition assistance program benefits, nutrition 5 benefits provided as part of the special supplemental nutrition program 6 for women, infants and children (WIC), home energy assistance program 7 benefits, senior citizen rent increase exemption, disability rent 8 increase exemption, rental subsidy pursuant to federal or state law, is 9 at or below four hundred percent of the federal poverty guidelines or 10 living in project-based subsidized housing or any substantially equiv- 11 alent successor programs to the aforementioned benefits programs; 12 (d) the individual used the unemployment benefits to meet their ordi- 13 nary living expenses, including, but not limited to, food, rent, medical 14 costs or insurance, dental bills or insurance, school loans, school 15 fees, utilities, child care, mortgage payments, transportation, purchase 16 or maintenance of a car or equipment needed for employment or self-em- 17 ployment, or operating expenses for self-employment; or 18 (e) there is any other reason for which recovery of the overpayment 19 would be against equity and good conscience under the circumstances. 20 (6) (a) In the event that a new determination by the commissioner or a 21 decision by a referee, the appeal board, or a court results in a 22 decrease or denial of any benefits previously allowed, or at any other 23 time it has been determined that an overpayment has occurred, the claim- 24 ant shall be notified in writing, by mail or electronically, within 25 fifteen days of such determination or decision of such claimant's right 26 to appeal such determination or decision and to request a waiver of 27 recovery of such overpayment. Such notice shall include, but shall not 28 be limited to: 29 (i) The total amount of such overpayment and the cause of such over- 30 payment; 31 (ii) The schedule of repayment for such amounts overpaid; 32 (iii) The means by which the commissioner is entitled to collect or 33 recover such overpayment; 34 (iv) An explanation of the claimant's right to appeal such determi- 35 nation or decision in accordance with the provisions of this article and 36 any rules and regulations promulgated thereunder; 37 (v) An explanation of the standards by which a claimant shall not be 38 found liable for the amounts overpaid, as set forth in this section; 39 (vi) The process by which the claimant may request and obtain a waiver 40 of recovery of such overpayment, including a copy of the waiver applica- 41 tion; and 42 (vii) the amount that is waived and the reason why any or all of the 43 overpayment was not waived. 44 (b) The commissioner shall review each waiver request in a manner 45 consistent with this section to determine whether the claimant shall be 46 held liable for any amounts overpaid. Any claimant who is found not to 47 be liable for any amounts overpaid shall be entitled to receive a full 48 waiver of such overpayment and any previously imposed penalties on such 49 overpayment must be rescinded accordingly. 50 (c) (i) Any claimant who disagrees with a determination regarding a 51 waiver may request a hearing within sixty days of receipt of the deter- 52 mination. 53 (ii) Claimants shall have all appeals rights as provided under title 54 eight of this article, except that referees may extend the time fixed 55 for requesting a hearing upon good cause shown.S. 444 4 1 (iii) When a determination is made that the claimant was at fault, the 2 referee and unemployment insurance appeals board shall review the deter- 3 mination of fault and any willful misrepresentations de novo. 4 (d) The department shall within thirty days of the effective date of 5 this section develop and implement a process by which claimants may 6 request and obtain an individual waiver application by phone, fax, mail, 7 and through the department's two-way communication system. The applica- 8 tion shall be made available to all claimants without regard to a deter- 9 mination of fault or willfulness in the receipt of the claimant's over- 10 payment. 11 (e) All notifications shall be translated into the twelve most common- 12 ly spoken languages in the state. 13 (f) Any funds recouped or repaid prior to the granting of a waiver 14 under this section shall be returned to the claimant as provided under 15 subdivision five of this section. 16 (7) (a) Upon the denial of any waiver request, or upon any other 17 determination by the commissioner or a decision by a referee, the appeal 18 board, or a court that a claimant shall be held liable for any overpay- 19 ment, the claimant shall be notified in writing, by mail or electron- 20 ically, within fifteen days of such determination or decision. Such 21 notice shall set forth the reason for such denial, if applicable, and 22 such claimant's right to request an adjustment to such claimant's repay- 23 ment schedule. 24 (b) Where a waiver is denied, the claimant shall be offered a repay- 25 ment plan to pay down the amount owed over a period of time no less than 26 three years. The repayment plan shall be based on the claimant's ability 27 to repay. After such three year repayment period, the department shall 28 write off any further overpayment debt remaining on the claim. Nothing 29 in this section shall impede the ability of the department to discharge 30 or waive any overpayment. 31 (c) The commissioner shall grant an adjustment to the claimant's 32 repayment schedule if at any time the claimant is able to demonstrate 33 that there has been a change in such claimant's financial condition 34 which warrants such adjustment. The department shall notify claimants 35 of the ability to seek a modified repayment plan in writing upon the 36 claimant's entry into a repayment plan. 37 § 2. Subdivision 4 of section 597 of the labor law is REPEALED. 38 § 3. Paragraph (c) of subdivision 1 of section 600 of the labor law, 39 as amended by section 19 of part O of chapter 57 of the laws of 2013, is 40 amended to read as follows: 41 (c) If, at the time benefits are payable, it has not been established 42 that the claimant will be receiving such pension, retirement or retired 43 pay, annuity or other payment, benefits due shall be paid without a 44 reduction, subject to review within the period and under the conditions 45 as provided in [subdivisions] subdivision three [and four] of section 46 five hundred ninety-seven with respect to retroactive payment of remun- 47 eration. 48 § 4. Within 30 days of the effective date of this act, the Commis- 49 sioner of Labor shall seek a review of this act by the United States 50 Department of Labor to determine the effect of this act on the ability 51 of New York State to receive a cap and/or waiver on the reduction of tax 52 credits, otherwise known as the Benefit Cost Rate (BCR) penalty, pursu- 53 ant to section 3302 of the Federal Unemployment Tax Act and 20 CFR 54 606.20. As part of the request to review the act, the Commissioner shall 55 ask the USDOL how the provisions of this act that allow for the waiver 56 of the overpayments of Federal unemployment or assistance benefits,S. 444 5 1 alone, including Pandemic Unemployment Assistance, Pandemic Emergency 2 Unemployment Compensation and Federal Pandemic Unemployment Compensation 3 shall effect the ability of New York State to receive a cap and/or waiv- 4 er on the reduction of tax credits, otherwise known as the Benefit Cost 5 Rate (BCR) penalty, pursuant to section 3302 of the Federal Unemployment 6 Tax Act and 20 CFR 606.20. Within one week of the receipt of the USDOL's 7 review, the Commissioner shall certify that this act will or will not 8 prevent a cap and/or waiver of the BCR penalty and provide such certif- 9 ication along with a copy of the USDOL's response to a request for such 10 review to the Assembly and Senate Labor Committee chairs. As part of 11 this certification, the Commissioner shall state whether or not the 12 provisions of this act that allow for the waiver of the overpayments of 13 Federal unemployment or assistance benefits, alone, including Pandemic 14 Unemployment Assistance, Pandemic Emergency Unemployment Compensation 15 and Federal Pandemic Unemployment Compensation will or will not prevent 16 a cap and/or waiver of the BCR penalty. The Commissioner shall seek such 17 review as of January 15 of each successive year until the sooner of the 18 Commissioner certifying that this act will not prevent a cap and/or 19 waiver of the BCR penalty or the State unemployment insurance trust fund 20 becomes solvent. 21 § 5. This act shall take effect immediately provided, however that 22 sections one, two and three shall take effect upon the certification by 23 the Commissioner of Labor that this act will not prevent a cap and/or 24 waiver of the BCR penalty and shall be deemed to have been in full force 25 and effect on and after March 9, 2020. If the Commissioner certifies 26 that the provisions of this act that allow for the waiver of the over- 27 payments of Federal unemployment or assistance benefits including 28 Pandemic Unemployment Assistance, Pandemic Emergency Unemployment 29 Compensation and Federal Pandemic Unemployment Compensation will not 30 prevent a cap and/or waiver of the BCR penalty, those provisions shall 31 take effect immediately and shall be deemed to have been in full force 32 and effect on and after March 9, 2020. In the event that the Commission- 33 er certifies that all provisions of this act will prevent a cap and/or 34 waiver of the BCR penalty, the provisions of this act shall take effect 35 upon the solvency of the State unemployment compensation trust fund and 36 shall be deemed to have been in full force and effect on and after March 37 9, 2020. The Commissioner of Labor shall notify the legislative bill 38 drafting commission upon the Commissioner's certification as required by 39 this section in order that the commission may maintain an accurate and 40 timely effective data base of the official text of the laws of the state 41 of New York in furtherance of effectuating the provisions of section 44 42 of the legislative law and section 70-b of the public officers law.
