Massachusetts Pandemic Unemployment
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In early 2020, the federal CARES Act added significant benefits to the unemployment system, including additional weekly benefits and establishment of pandemic unemployment benefits to allow the self-employed and independent contractors to access benefits during the pandemic.
Though the pandemic unemployment benefits expired on September 4, 2021, many individuals are still fighting to either receive or not pay back pandemic unemployment benefits for the period between March, 2020 and September 4, 2021. Early on, independent contractors or people otherwise ineligible for traditional unemployment simply had to self-certify that they met the criteria for pandemic benefits. Later in 2020, Congress required states to seek documentation of eligibility, and to pursue overpayments. By the time this occurred, many people had stopped receiving benefits and stopped paying attention to their online DUA accounts. Some missed the request for documentation; others provided documentation that the DUA deemed insufficient. As a result, these individuals are facing notices of overpayment- sometimes in excess of $30,000- to the state. Do You Need a Lawyer for Your Overpayment Notice?This depends on where you are in the process. Like regular unemployment, there are things most people can handle themselves with the right information and guidance. For these parts, it just may not make economic sense to hire an attorney. There are other parts of the process, however, where having a representative significantly increases your chances of overturning an overpayment notice.
That's why we have created the Unemployment Roadmap- a low-cost, step by step "how to" guide through the process. You can use this to guide you all the way through, or use it to get it as far as you can go and give us a call when you are ready for help. If you have an appeal hearing scheduled already, or have received a denial after a hearing, this would be a good time to get a lawyer involved. If you are earlier in the process, however, the Roadmap may be your perfect solution.
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Need Help With an Unemployment Decision?
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Eligibility for Pandemic Unemployment
Pandemic unemployment benefits were made available to individuals who were affected by COVID-19 but otherwise ineligible for traditional unemployment. Most commonly this affected the self-employed, independent contractors, and "gig" workers. it also affected people who had not made enough income in the prior base period to qualify for regular unemployment.
Early guidance from the federal Department of Labor confirmed that there was no minimum amount a self-employed individual needed to have earned prior to the pandemic, and established a "minimum base rate." People in this category were eligible to receive the minimum base rate, as well as the additional funds made available by the federal government $600 per week and later $300 per week).
In December, 2020, Congress passed a law requiring states to obtain documentation from people who collected benefits to confirm their eligibility, including documentation that they had been connected to the workforce (i.e., earned money) in their business prior to the pandemic and had lost that income as a result of COVID-19. Per the Department of Labor, this was meant to impact only benefits after that date, not benefits previously received. The DUA, however, has issued overpayment notices for amounts paid in 2020 where it is not satisfied with the documentation provided.
Early guidance from the federal Department of Labor confirmed that there was no minimum amount a self-employed individual needed to have earned prior to the pandemic, and established a "minimum base rate." People in this category were eligible to receive the minimum base rate, as well as the additional funds made available by the federal government $600 per week and later $300 per week).
In December, 2020, Congress passed a law requiring states to obtain documentation from people who collected benefits to confirm their eligibility, including documentation that they had been connected to the workforce (i.e., earned money) in their business prior to the pandemic and had lost that income as a result of COVID-19. Per the Department of Labor, this was meant to impact only benefits after that date, not benefits previously received. The DUA, however, has issued overpayment notices for amounts paid in 2020 where it is not satisfied with the documentation provided.
Overpayment Issues for PUA
The most common issue we have seen is a claim by the state that the individual did not prove a loss associated with COVID-19. This could be because the individual did not have the proper 2019 tax returns to show self-employment income pre-pandemic. This situation also arises where the individual has the necessary documentation, but did not receive the request for that information in time to provide it.
If you have documentation of your pre-COVID income but simply missed the window to provide it to the DUA, you can submit that documentation along with your appeal of the overpayment notice.
If you cannot prove pre-COVID income, you still have an argument that, at least for benefits paid in 2020, there was no requirement that you show income. We have several cases pending before the Board of Review seeking to overturn an overpayment finding on this basis.
If you have documentation of your pre-COVID income but simply missed the window to provide it to the DUA, you can submit that documentation along with your appeal of the overpayment notice.
If you cannot prove pre-COVID income, you still have an argument that, at least for benefits paid in 2020, there was no requirement that you show income. We have several cases pending before the Board of Review seeking to overturn an overpayment finding on this basis.
What if I Have Missed the Appeal Deadline?
If you stopped collecting benefits before the end of 2020, you may not have even been checking your online unemployment account for notifications and updates. Worse, if you opted for only electronic notifications, you may not have even been getting physical notices in the mail.
This means many people missed the deadline to appeal a decision of ineligibility, and did not even know that decision had been made until they were notified that they owe the state money.
If you are in this situation, you can still file a request to submit a late appeal. You will have to show "good cause" for the untimely appeal. If the DUA allows you to file a late appeal, you will have the chance to contest the finding on substantive grounds. If it does not allow you to appeal, you can still request a waiver of the overpayment. You should appeal first, however, as the waiver process requires you to show current financial hardship if required to pay back the money. In contrast, establishing that you were not overpaid in the first place removes the debt entirely, even if you are now doing better financially and cannot prove a hardship.
This means many people missed the deadline to appeal a decision of ineligibility, and did not even know that decision had been made until they were notified that they owe the state money.
If you are in this situation, you can still file a request to submit a late appeal. You will have to show "good cause" for the untimely appeal. If the DUA allows you to file a late appeal, you will have the chance to contest the finding on substantive grounds. If it does not allow you to appeal, you can still request a waiver of the overpayment. You should appeal first, however, as the waiver process requires you to show current financial hardship if required to pay back the money. In contrast, establishing that you were not overpaid in the first place removes the debt entirely, even if you are now doing better financially and cannot prove a hardship.
How Can We Help?
If you have received an overpayment notice, we can help. You can use the button below to schedule a call back from a member of our team, give us a call at 781-784-2322, or fill out our web form to let us know a little more about your situation.
