Forgiving millions in excess unemployment benefits is no easy task in Connecticut

[TexasTowelie]

While lawmakers scramble to assist residents who have been told they must repay millions of dollars in excess unemployment benefits they collected — without fraud — during the pandemic, labor officials are warning that the matter is far more complex than many realize.

Two-thirds of the repayment obligations tallied to date are owed to the federal government, Department of Labor Commissioner Dante Bartolomeo told the legislature’s Appropriations Committee.

More important, the latest projection of what must be recouped — about $30 million — is based on a review of only about 40% of the applications for unemployment benefits filed between March 2020 and September 2021.

“That number will grow, simply because of the volume that we have,” Bartolomeo said.

Read more: https://www.courant.com/politics/hc-pol-connecticut-unemployment-forgiveness-20211107-y43dns3ntbhjxpsbppcxpjainy-story.html

[MichMan]

1. I don't understand why this is so complicated

Last edited Tue Nov 9, 2021, 01:31 AM - Edit history (1)

Claimants got benefits they ultimately were not eligible for under the rules. Given that the rules were very lenient regarding eligibility, these obviously should have never been approved in the first place.

If the state decides that it isn't fair to make the recepients pay any of them back, they can elect to pay the money back to the federal government with state funds instead.

Forcing the burden on employers if they neither caused or benefitted from it would be the wrong way to remedy the situation IMO since it was caused by state incompetence.