BUFFALO (WBEN) - The New York State Department of Labor is now demanding residents who wrongfully claimed and received unemployment benefits during the height of the pandemic to repay that money.
According to local employment attorney Kevin Wicka, the state became so overrun with claims that it made it much easier for fraudulent claims to slip through the cracks, but now, there's more time to review those claims.
"There was quite a large influx of applicants, and what happens then is that paperwork would be generated to the employers who would have to fill out reasoning as to whether someone was truly eligible or not, what the circumstances were surrounding them losing their job," Wicka explained. "The state is now getting around to reviewing all of those, and people that received benefits, who otherwise were not eligible, are now receiving notices of repayment."
If residents fall under that category, they're receiving notices in the mail through the Department of Labor, so if you received unemployment benefits and aren't contacted by the state, then there shouldn't be an issue. However, Wicka doesn't know when the notices will stop.
"I think because of COVID, the panic, and people losing their jobs, I think people thought it was much easier to collect, and it was, than what would be normal," said EG Tax CEO Esther Gulyas. "There's many people that were offered jobs that were collecting $1,100 a week in unemployment, and they turned (the jobs) down because they could make more money on unemployment - if that was the case, you may have to pay back something."
Gulyas' message for residents who receive the notice is not to panic, but she certainly doesn't recommend ignoring it either.
"Sometimes, especially people who are unemployed and can't make the payments, the State of New York has no choice but to wait for them to be able to pay that obligation," she said, noting people can work with the state to arrange some sort of payment plan. "Making terms with the state obviously will make it much better."
Another avenue, according to Wicka, is to take the claim to court.
"There is a process to be able to appeal that, and what you can do if you receive one of those notices is you can fill out the paperwork requesting a hearing...and an administrative law judge will review the circumstances," said Wicka. "In many cases, they will reverse that determination if in fact it turns out the person did properly receive those benefits."
Wicka noted that for a determination to be overturned, residents will have to show that they indeed met the criteria to receive those benefits.
