New York 2025-2026 Regular Session

New York Assembly Bill A09578

Introduced
1/21/26  

Caption

Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

Impact

The implications of A09578 on state laws revolve around how unemployment benefits are administered. If enacted, it would reshuffle the existing procedures regarding the recovery of overpaying benefits, balancing the needs of the state to recoup financial missteps against the burden this might impose on claimants. Particularly critical is the provision that would create a presumption of 'without fault' in numerous scenarios, easing the repayment pressure on individuals who relied on potentially erroneous guidance from the state. This is particularly important as many claimants navigate complicated systems that can obscure their eligibility and responsibilities.

Summary

Bill A09578 aims to amend the labor law in New York concerning the recovery of overpayments of unemployment benefits. It stipulates that claimants who receive benefits they were not entitled to shall not be held liable for the overpayment amounts under certain conditions. The bill outlines definitions for terms such as 'without fault' and 'willful misrepresentation', establishing a framework for determining when a claimant may be exempt from repayment. The proposed legislation further directs the Department of Labor to provide applications for individual waivers to claimants who have previously been denied such waivers, simplifying the process for individuals seeking relief from overpayment recovery.

Contention

Notable points of contention in the bill focus on who determines fault and how overpayments are assessed. Critics may argue that while protecting claimants is essential, the bill could encourage carelessness in reporting or claiming benefits if individuals believe they will not face consequences for overpayment. Additionally, the bill's provisions allowing for waivers may raise concerns regarding fiscal responsibility and the potential for increased costs to the unemployment insurance fund. The balance between aiding claimants and protecting the integrity of the unemployment system is likely to be a significant area of debate.

Companion Bills

NY S09841

Same As Provides that any claimant who has received certain unemployment benefits to which they were not entitled shall not be held liable for the amounts overpaid provided certain conditions exist; directs the department of labor to provide claimants who have previously been denied waivers with applications for individual waivers; repeals certain provisions of law relating thereto.

Similar Bills

No similar bills found.