Rowan Hayes received a letter on Dec. 6, 2023 from the Oregon Employment Department (OED), saying she was eligible for and would be refunded the unemployment benefits she paid back during the pandemic. This was a turnaround from their 2020 decision that Hayes, who had stopped working, must repay her unemployment benefits totaling $14,000. The Oregon Law Center had sued the OED and its Director, David Gerstenfeld, in 2022 on behalf of six Oregonians who been instructed to reimburse their unemployment benefits. They cited the overpayment system as unclear and fragmented, without proper explanation as to why already paid benefits could be reclaimed.

The case will be heard by Multnomah County Circuit Court Judge Eric Dahlin, who will determine if the process violated recipients’ constitutional rights to due process. Around 80,000 overpayment decisions were made by the OED in 2022. Hayes, an unemployed mom from Clackamas reached out to the Oregon Law Center after receiving her letter from the OED. She recounts her difficult experience interacting with the agency.

The case filed by the Oregon Law Center is asking the court to confirm the agency’s overpayment processes violate the due process clause of the 14th Amendment. The claimants are also asking the state to stop collecting overpayments until the OED establishes a new system. The OED argues that changes will come into effect later in the year, with a new system launching on March 4. Dahlin has asked for examples of similar due process decisions in Oregon and whether any problems with the overpayment system were connected to the pandemic. The lawyers representing the plaintiffs ardently argue that the issues predate the pandemic. Dahlin also questioned if the new system may perpetuate existing constitutional violations.

Questions were also raised regarding the agency’s practice of not providing complete notices in Spanish to recipients. Additional briefs were requested by Dahlin from both sides by Feb. 12.