Senate Committee Approves Legislation Aiding Individuals Who Erroneously Received Unemployment Benefits
Legislation designed to assist Virginian residents who have received overpayments from the Virginia Employment Commission has gained bipartisan approval from a Senate committee. This issue has become pertinent due to the increase in applicants mistakenly approved for benefits during the peak of the pandemic. The proposed bill from Sen. Lamont Bagby would broaden the agency’s capacity to grant waivers in cases where demanding repayment would conflict with good conscience. Under the existing law, overpayments may only be written off after seven years, or if the individual has filed for bankruptcy or died. A bill from Sen. Adam Ebbin proposes that nonfraudulent overpayments must be written off after five years or if the individual has filed for bankruptcy or died. The Virginia Employment Commission admitted in 2022 that it was pursuing the collection of over $859 million in overpayments made to 366,000 Virginians during the pandemic. The proposed legislation has the potential to ease the burden of unexpected repayments, which can put households under significant financial strain.