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Update on Unemployment Overpayment Waiver - CA EDD Over Payment Waiver - DOL Issues New Guidance - YouTube
Channel: Ginny Silver - Business Coach for Creatives
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Hey, guys, it's Ginny Silver.
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And today I want to talk to those of you who are waiting
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more information on an overpayment waiver.
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Back in December with the stimulus bill, we had a provision
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that was optional for States to include an overpayment waiver
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to Claimants that were paid more than they were allowed with
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their Pandemic related programs and then were required to
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pay some back, sometimes with a penalty.
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Well, if the overpayment was no fault of your own, you did
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not. It a false statement knowingly and it creates financial
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hardship. Then an overpayment waiver was created as an option
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while in the state of California.
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The California EDD stated that they would be opting into
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this program, but we have not heard any mention of it or
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additional details since winter.
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Yesterday, on May 5th, a Department of Labor released
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new guidance on the implementation of overpayment waivers.
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This answers the question of why Edd has not stated any additional
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information about the overpayment waiver.
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This additional guidance from the Department of Labor very
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specifically outlines how the States can implement the overpayment
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waivers. So I would anticipate that following the release
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of this guidance that the California Edd will release some
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sort of a statement and an upcoming press release that more
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information on overpayment waivers is available.
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I want to go through the Department of Labor guidance for
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you so that you can see the program details and what the
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Department of Labor is allowing the States to choose from
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in terms of how they are implementing the overpayment waivers.
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Keep in mind that the California Edd will need to determine
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exactly how they are going to be implementing this based
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on the options of the Department of Labor provides once California
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Edd decides how they're going to implement this and shares
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exactly their own specific program.
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Now, first up, this only applies to Pandemic related programs,
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Pua, FPUC, which is the 300 dollars boost mixed earners compensation,
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which is MEUC, which is not yet up and running in California
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and PEUC.
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It also applies to the first week of regular unemployment
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compensation. Why only the first week of regular unemployment?
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Because the first week is the pandemic federally funded week
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of unemployment compensation so that there wasn't a gap in
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a waiting period after you apply.
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Now they stay here under waving Recovery of Over Payment
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of Cares Act programs.
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Federal law sets out the authority to waive recovery of overpayments
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under certain circumstances for PUA, FPUC MEUC, PEUC in the first
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week of unemployment compensation.
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It is a matter of state discretion whether to exercise this
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waiver authority, so it is optional for States to implement
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this. It is not required.
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A state may only waive repayment of an overpayment if the
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state determines that number one, the payment of such compensation
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was without fault on the part of any such individual.
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And number two, such repayment would be contrary to equity
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and good conscience.
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They then go on to define what equity and good conscience
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means means that it would cause financial hardship to the
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person for whom it is sought.
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Or the recipient of the overpayment can show, regardless
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of their financial circumstances, that due to the notice
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that such payment would be made, or because of the incorrect
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payment, either they have relinquished a valuable right or
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change positions for the worse, or recovery would be unconscionable
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under the circumstances.
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Now, the state can choose to either automatically determine
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if this applies to every overpayment case, or they can provide
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individuals with the ability to make a request.
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These guidelines also lay out a provision for States to apply
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blanket waiver, which means that the States may approve a
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waiver of recovery for over pants using a single set of facts
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which they are calling a blanket waiver.
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There are two specific circumstances where States can provide
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a blanket waiver.
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Number one would be when an individual is eligible for payment
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under an unemployment benefit program for a given week, but
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through no fault of the individual, they were paid incorrectly
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under either the PUA or FPUC program at a higher weekly benefit
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award amount.
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The state can also apply a blanket waiver if specific to
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PUA claims, when, through no fault of the individual, the
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state paid the individual a minimum weekly benefit reward.
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Based on DUA guidance, the States must choose from three
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different options.
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They can choose number one, to not implement the overpayment
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waiver option at all.
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Or they can choose to exercise the waiver and not process
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blanket waivers.
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Or they can choose to exercise the waiver and process blanket
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waivers. The state is opting into overpayment waivers.
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Then they must notify all individuals with a non fault overpayment
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of their ability to request a waiver.
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If they are opting into using blanket waivers after they
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assess and apply all of their blanket waivers, then they
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need to alert anyone who was not covered under a blanket
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waiver that they may request an overpayment waiver.
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States also must, upon receipt of the waiver request, pause
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further collections until a determination of waiver eligibility
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is made.
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That means that if you apply for an overpayment waiver while
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that application is in process, the state cannot collect
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any further overpayments from you until they determine a
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decision. Some of you may have already paid back over payments
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and you may be eligible for an overpayment waiver.
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What this States here is that the state must refund any amounts
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that were collected towards the applicable overpayment prior
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to the determination of waiver eligibility.
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But they do state here that given the many demands of state
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agencies, it may take, for example, up to a year for the
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States to program their computer systems and notify individuals
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before they process such refunds.
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Okay, you guys.
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So now that the Edd has this guidance from the Department
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of Labor, I would hope that we would see something in a Press
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release in upcoming weeks about more information about specifics
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to how California will be implementing the overpayment Labor.
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I hope that was helpful.
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