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Bill > HB2040

VA HB2040

VA HB2040
Unemployment compensation; failure to respond, continuation of benefits, repayment of overpayments.

summary

Introduced
01/12/2021
In Committee
02/05/2021
Crossed Over
02/04/2021
Passed
Dead
02/08/2021

Introduced Session

2021 Regular Session

Bill Summary

Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately. Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim. Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately. Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim. The bill provides that when a claimant has had a determination of initial eligibility for benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard. The bill provides that the Commission shall waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. The Commission shall have authority to negotiate the terms of repayment for any overpayment where repayment is not forgiven. Overpayments shall not be considered "without fault" if the overpayment was the result of (i) a reversal in the appeals process, unless the employer failed to respond or timely respond or (ii) a programming, technological, or automated system error that results in erroneous payments to a group of individuals. The bill also provides that the Commission shall notify each person with an unpaid overpayment of benefits that they may be entitled to a waiver of repayment and provide 30 days to request such a waiver. The bill applies to overpayments established for the week commencing March 15, 2020 through the week commencing June 26, 2021 and only to those overpayments that have not been fully or partially repaid. Finally, the bill allows the Commission to suspend or forego referring any overpayment to the collections process until June 30, 2022.

AI Summary

This bill makes several changes to unemployment compensation laws in Virginia: 1. It reduces the number of times an employer must fail to respond to requests for information from the Virginia Employment Commission (VEC) before being considered to have established a pattern of failure, from four times to two times within a 48-month period. It also imposes a $75 civil penalty on the employer upon the second failure, rather than the third. 2. It provides that if an employer fails to respond timely or adequately to a VEC request for information, the employer forfeits any appeal rights to that claim. 3. It requires the VEC to continue benefit payments to a claimant who has already been determined eligible, until a new determination is made that provides the claimant notice and an opportunity to be heard. 4. It allows the VEC to waive the requirement to repay overpayments of benefits if the overpayment was not the claimant's fault and repayment would be contrary to equity and good conscience. 5. It requires the VEC to notify individuals with unpaid overpayments that they may be eligible for a waiver, and give them 30 days to request a waiver. 6. It allows the VEC to suspend or forego referring overpayments to collections until June 30, 2022.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (28)

Last Action

Continued to 2021 Sp. Sess. 1 in Commerce and Labor (15-Y 0-N) (on 02/05/2021)

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