Texas Reverses on Collection of Overpaid Unemployment Benefits

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The State of Texas said on Wednesday that it would not ask people who received overpayments from the Texas Workforce Commission (TWC) because of the agency’s error to reimburse them, reversing the previous position of the Commission. The agency said on Monday that it would seek reimbursement for 46,000 people who were initially overpaid in unemployment benefits, even if the overpayments were not their fault.

The agency estimates unemployment benefits overpaid to claimants at $ 32 million.

However, the commission backed down later in the week, saying it would no longer need returns.

“Texas is prevented by court order from collecting overpayments caused solely by the commission’s error,” Texas Workforce Commission spokesperson Cisco Gamez said Wednesday in a media update. online, according to the Texas Tribune.

The court order, which Gamez said he was not aware of before, dates back to 1978, according to the Texas Tribune.

Gamez said the commission did not yet have data for 2020 regarding exactly the number of overpayments for which TWC was responsible.

In 2019, TWC was responsible for 0.4% of the incorrect payments based on an audit by the U.S. Department of Labor.



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