Hull state rep's bill aimed at helping people ordered to repay unemployment benefits

As many families in Massachusetts climb out of a financial hole created by COVID-19, Rep. Joan Meschino, D-Hull, said the state is telling some that they must repay unemployment benefits received in error during the pandemic.

The problem, Meschino said, is that many of those families don't have the money.

"It was all in good faith. People spent the money. They don't have it. And now (the Department of Unemployment Assistance) is looking for it back and it's causing a tremendous amount of stress and anxiety," Meschino said.

She has filed legislation backed by the AFL-CIO and others that would clarify the standards used to determine whether a beneficiary of unemployment benefits qualifies for a waiver from having to repay excess benefits.

Those waivers are only available if the overpayment was not the fault of the applicant, and one of the stated criteria would be if the money was used to meet ordinary living expenses.

Meschino filed the bill in late September based on constituent cases handled by her office, and thanked the Committee on Labor and Workforce Development for scheduling a hearing quickly so that the Legislature might consider remedies.

"We recognize there's an issue and (the Department of Unemployment Assistance) recognizes there's an issue and we certainly want to work with everyone on this," said Rep. Josh Cutler, D-Pembroke, co-chair of the Labor and Workforce Development Committee.

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Meschino said many of the overpayments were made during a period when the Department of Unemployment Assistance was processing huge volumes of claims for unemployment benefits and trying to apply changing rules and administer new programs authorized by Congress to support unemployed workers during the pandemic.

The constituents who have called her office seeking help come from all sectors, including the gig economy, tourism and hospitality, Meschino said. Her bill would also seek to address language, technology and other barriers preventing workers from applying for waivers from overpayment.

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John Drinkwater, of the AFL-CIO, said the union has helped hundreds of workers navigate the unemployment insurance system and resolve issues of eligibility, but he said not all cases involving overpayment waivers can be easily adjudicated.

"They don't have the money to repay because they spent it on their families," Drinkwater said.

The Department of Unemployment Assistance did not immediately respond to a request for comment, and it was unclear how much money in overpayments the agency is seeking to recoup.