SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2021 SPECIAL SESSION I

  • | print version

HB 2040 Unemployment compensation; continuation of benefits, repayment of overpayments.

Introduced by: Sally L. Hudson | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that when a claimant has had a determination of initial eligibility for unemployment benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard.

The bill requires the Virginia Employment Commission to waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. Overpayments shall not be considered "without fault on the part of the individual" if the overpayment was the result of (a) a reversal in the appeals process, unless the employer failed to respond timely or adequately; (b) a programming, technological, or automated system error that results in erroneous payments to a group of individuals; or (c) fraud.

The bill also provides that the Commission shall notify each person with an unpaid overpayment of benefits that he may be entitled to a waiver of repayment and provide 30 days to request such a waiver. The bill applies to outstanding overpayments established for the week commencing March 15, 2020, through the week commencing June 27, 2021. Amounts already paid or collected against such overpayments shall not be reimbursed to the claimant, except for benefits paid under the Pandemic Unemployment Assistance program. The bill allows the Commission to suspend or forgo referring any overpayment to the collections process. The bill provides that all costs to the Unemployment Compensation Fund (the Fund) resulting from the provisions of the bill for overpayments of benefits shall be reimbursed to the Fund from the general fund in the general appropriation act and that employers are not responsible for reimbursing benefits or benefits charges except when the employer failed to respond timely or adequately. The provisions of the bill expire on July 1, 2022.

SUMMARY AS PASSED:

Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that when a claimant has had a determination of initial eligibility for unemployment benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard.

The bill requires the Virginia Employment Commission to waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. Overpayments shall not be considered "without fault on the part of the individual" if the overpayment was the result of (a) a reversal in the appeals process, unless the employer failed to respond timely or adequately; (b) a programming, technological, or automated system error that results in erroneous payments to a group of individuals; or (c) fraud.

The bill also provides that the Commission shall notify each person with an unpaid overpayment of benefits that he may be entitled to a waiver of repayment and provide 30 days to request such a waiver. The bill applies to overpayments established for the week commencing March 15, 2020, through the week commencing June 26, 2021, and only to those overpayments that remain outstanding as of July 1, 2021. Amounts already paid or collected against such overpayments shall not be reimbursed to the claimant, except for benefits paid under the Pandemic Unemployment Assistance program. The bill allows the Commission to suspend or forgo referring any overpayment to the collections process. The bill provides that all costs to the Unemployment Compensation Fund (the Fund) resulting from the provisions of the bill for overpayments of benefits shall be reimbursed to the Fund from the general fund in the general appropriation act and that employers are not responsible for reimbursing benefits or benefits charges except when the employer failed to respond timely or adequately. The provisions of the bill expire on July 1, 2022.

SUMMARY AS PASSED HOUSE:

Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately. Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim.

The bill provides that when a claimant has had a determination of initial eligibility for benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard.

The bill provides that the Commission shall waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. The Commission shall have authority to negotiate the terms of repayment for any overpayment where repayment is not forgiven. Overpayments shall not be considered "without fault" if the overpayment was the result of (a) a reversal in the appeals process, unless the employer failed to respond or timely respond, or (b) a programming, technological, or automated system error that results in erroneous payments to a group of individuals.

The bill also provides that the Commission shall notify each person with an unpaid overpayment of benefits that he may be entitled to a waiver of repayment and provide 30 days to request such a waiver. The bill applies to overpayments established for the week commencing March 15, 2020, through the week commencing June 26, 2021, and only to those overpayments that have not been fully or partially repaid. Finally, the bill allows the Commission to suspend or forgo referring any overpayment to the collections process until June 30, 2022.

SUMMARY AS INTRODUCED:

Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately. Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim.

The bill provides that when a claimant has begun receiving unemployment benefits, such benefits shall continue to be paid under a presumption of continuing entitlement unless or until a deputy determines, in a process providing notice and opportunity to be heard to the claimant, that the claimant is ineligible or disqualified.

The bill provides that an individual who receives an overpayment of unemployment benefits is not liable to repay the overpayments to the Commission if the Commission determines that (i) the overpayment was not due to fraud, misrepresentation, or willful nondisclosure on the part of the recipient and its recovery would be against equity and good conscience; (ii) the overpayment was a direct result of inducement, solicitation, or coercion on the part of the employer; or (iii) the overpayment occurred due to administrative error. The bill requires the Commission to waive an overpayment of benefits under a federal unemployment benefit program if the program authorizes the waiver. The bill provides that any person who receives an overpayment of benefits is not required to repay such overpayment if the Commission determines that the overpayment was made because the employer failed to respond timely or adequately to a written request by the Commission for information relating to the claim. Finally, the bill prohibits a determination with respect to benefit overpayments to be issued until after a determination or decision that finds a claimant ineligible or disqualified for benefits previously paid has become final.