TWC Won't Collect Overpaid Unemployment Benefits
A Texas Workforce Commission spokesperson said he was previously unaware that a judicial order bars the state from recovering funds when the overpayment is the agency's fault.
Texas reverses course, says it won't collect overpaid unemployment benefits in instances when it was the state's mistake
"Texas reverses course, says it won't collect overpaid unemployment benefits in instances when it was the state's mistake" was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.
Workers who lost their jobs and received overpayments from the Texas Workforce Commission won’t have to pay back those unemployment benefits if it was the state’s mistake, commission officials now say.
That's different from the agency's previous insistence, first reported by the Houston Chronicle, that the 46,000 Texans who received overpayments in recent months would have to pay the state back — even if they were not to blame.
“Texas is prevented by court order from collecting overpayments caused solely by the commission's error,” spokesperson Cisco Gamez said Wednesday during a media update posted on Facebook. That court order, which Gamez said he was previously unaware of, dates to 1978.
"I have to apologize for giving you information that was not more clear," Gamez wrote in an email to The Texas Tribune on Thursday.
The agency is seeking $32 million in unemployment benefits back. The commission is unsure how many people were overpaid because of a TWC error but says it’s very rare. Last year, according to a U.S. Department of Labor audit, TWC was responsible for 0.4% of incorrect payments.
“Anecdotally, there are roughly eight to 10 of these types of errors identified each year,” Gamez said Monday.
In most cases, overpayments occur because applicants report incorrect information or are not eligible, according to the agency.
Claimants who have received notices about overpayments can appeal the process, but TWC can take legal action if it doesn’t recover the money. If TWC finds unemployment fraud in a case, the person has to give back the benefits and pay a 15% penalty.
“There is no statute of limitations on debts owed to the state,” Gamez wrote in a previous email. “TWC cannot forgive or dismiss the overpayment and there is no exception for hardship.”
After two months of decline, unemployment claims have started to increase in Texas again. More than 117,244 people applied for unemployment claims last week, an increase of 21.4% compared with the week before. It was the second week in a row that the number of claims rose. Since mid-March, nearly 2.8 million people have filed for unemployment benefits in Texas.
This article originally appeared in The Texas Tribune at https://www.texastribune.org/2020/07/09/texas-unemployment-overpayment/.
The Texas Tribune is proud to celebrate 10 years of exceptional journalism for an exceptional state. Explore the next 10 years with us.
Texas Workforce Commission Overpaid Unemployment Benefits
The Texas Workforce Commission said that incorrect filings and fraud can lead to overpayments, but the money must be paid back even if it was the state's mistake.
Texas clawing back $32 million in unemployment benefits after finding 46,000 people were overpaid
"Texas clawing back $32 million in unemployment benefits after finding 46,000 people were overpaid" was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.
More than 46,000 Texans who lost their jobs in recent months are having portions of their unemployment benefits clawed back after the Texas Workforce Commission found that they were initially overpaid.
The overpayments, first reported by the Houston Chronicle, are estimated to be more than $32 million in total since March.
“State law requires TWC to recover all unemployment benefits overpayments,” Cisco Gamez, spokesperson for the state agency, said in an email. “Overpayments stay on your record until repaid."
There can be several causes for overpayment, according to the agency, including fraud or incorrect reporting on an application. If TWC finds unemployment fraud in a case, the person has to give back the benefits and pay a 15% penalty.
Benefits must be repaid even if the state is to blame for the overpayment, or if it was otherwise not the recipient's fault.
"We cannot pay you benefits if you have an overpayment," Gamez said.
If the person that receives the notification of overpayment doesn't send back the money, the state comptroller can recover the money by withholding certain funds, including lottery winnings, unclaimed property, unemployment benefits and other state job-related expenses. Some state funding for college students cannot be released until a repayment is made in full.
Claimants who have received notices can appeal the process, but TWC can take legal action too if they don’t recover the money.
“There is no statute of limitations on debts owed to the state,” Gamez said on an email. “TWC cannot forgive or dismiss the overpayment and there is no exception for hardship.”
As of late June, 2.7 million Texans had filed for unemployment relief since mid-March, but TWC has struggled to keep up with the high levels of demand. Since the pandemic started, countless Texans have experienced problems accessing these benefits, encountering busy phone lines and an overwhelmed application website.
This article originally appeared in The Texas Tribune at https://www.texastribune.org/2020/07/06/texas-unemployment-benefits-workers/.
The Texas Tribune is proud to celebrate 10 years of exceptional journalism for an exceptional state. Explore the next 10 years with us.