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DOL Guides States on Waiving Recovery of Erroneous Jobless Aid

May 5, 2021, 7:46 PM

The Biden administration is extending new flexibility to states on how to demonstrate leniency to workers who received extra jobless benefits to which they weren’t entitled during the pandemic, but would struggle to pay back.

In a letter Wednesday, the U.S. Labor Department explained that state agencies can waive the recovery of unemployment insurance overpayments—and even refund erroneous benefits that they’ve already recouped—in situations where the individual wasn’t to blame and when demanding collection would be contrary to “equity and good conscience.”

States that don’t already have their own laws on defining “equity and good conscience” in this circumstance must ...

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