Brown Presses ODJFS on Reports Agency is Punishing Ohioans for State’s Unemployment Mistakes

WASHINGTON, D.C. –U.S. Sen. Sherrod Brown (D-OH) wrote to Ohio Department of Jobs and Family Services (ODJFS) Director Kimberly Hall to press the agency on news reports that the state is demanding Ohioans pay back unemployment overpayments when the state is at fault. In his letter, Brown points to the financial anxiety facing hundreds of thousands of unemployed Ohioans during the COVID-19 pandemic and asks ODJFS to waive the recoupment of non-fraud overpayments when the state is at fault.

“It is imperative that Ohio’s UI program provide a safety net for laid off individuals. Thousands of Ohioans already experienced significant delays in receiving their unemployment benefits, and these recoupment letters are aggravating already financially stressful times for Ohio workers. I urge ODJFS to use its existing authority to waive recoupment of overpayments when they were made as a result of an error by the state,” wrote Brown.

In the letter, Brown also calls on Director Hall to ensure that any overpayment notices sent to UI beneficiaries clearly state whether the overpayment is the fault of the state or the individual and provides clear instructions for filing an appeal of the state’s decision. Brown also says that the state should not send any individual to collections for these non-fraud overpayments. Debt collection exacerbates racial inequities and poverty and is particularly inappropriate in instances where the state’s mistake led an unemployed individual to receive additional safety net payments while out of work.

Brown has pushed for an extension of critical unemployment benefits for Americans who are still recovering financially from the COVID-19 pandemic. The Senator has pressed Secretary Scalia for a response to a letter he led, urging DOL to undertake a comprehensive but quick survey of existing UI systems to help Congress devise the most effective policies to respond to delays in disbursements. Brown has also called for a nationwide overhaul of UI systems’ technology capabilities, which is necessary to prevent delays from occurring in the future.

Brown’s letter to ODJFS can be found HERE and below.

Dear Ms. Hall:

I am troubled by recent news reports that the State of Ohio is seeking to recoup overpayments of state unemployment insurance (UI) benefits in instances where the state agency is responsible for the error.  I understand the importance of maintaining integrity in the state’s unemployment program, but I urge the Ohio Department of Jobs and Family Services (ODJFS) not to seek recoupment of non-fraud overpayments when the state was at fault.

According to several news reports, the state is sending letters to individuals who received UI overpayments through no fault of their own, giving individuals 60 days to make the repayment and threatening to report anyone who does not to the Ohio Attorney General and collections.  The COVID-19 pandemic has disproportionately affected low-wage and Black and brown workers, and these aggressive notices are particularly distressing to families who are already facing significant challenges and who cannot tell from the notices what their options are and whether they are at fault. 

The state must ensure that any overpayment notices sent to UI beneficiaries clearly state whether the overpayment is the fault of the state or the individual and provides clear instructions for filing an appeal of the state’s decision.  More importantly, the state should not send any individual to collections for these non-fraud overpayments.  Debt collection exacerbates racial inequities and poverty and is particularly inappropriate in instances where the state’s mistake led an unemployed individual to receive additional safety net payments while out of work.

Additionally, the state should not send those notices to individuals who received overpayments through no fault of their own.  Ohio law already allows the state to waive recoupment of non-fraud overpayments when the state makes a clerical error.  Other states, including the surrounding states of Michigan, Indiana, and Illinois, similarly allow recoupment of non-fraud overpayments to be waived.  These waivers were put in place to protect UI recipients from being held responsible for errors made by the state agency.  

It is imperative that Ohio’s UI program provide a safety net for laid off individuals.  Thousands of Ohioans already experienced significant delays in receiving their unemployment benefits, and these recoupment letters are aggravating already financially stressful times for Ohio workers.  I urge ODJFS to use its existing authority to waive recoupment of overpayments when they were made as a result of an error by the state. 

Sincerely,

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