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2021 SPECIAL SESSION I

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

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

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION: (all summaries)

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.


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