HB 2040 Overpayment Waiver

April 23, 2021
HB 2040 requires the Virginia Employment Commission to set-up a waiver application process that allows claimants to make an application to have the repayment of an overpayment of benefits waived where the claimant is at no fault for the overpayment and the repayment would be contrary to equity and good conscience during specified benefit weeks that occurred during the COVID-19 health pandemic.
  • HB 2040 only allows for the possible waiver of repayment of overpayments that occurred during the benefit week starting March 21, 2020 through the week ending July 3, 2021.
  • The general requirement to qualify for a waiver is that the claimant is at no fault for the overpayment and requiring the overpayment is contrary to good conscience and equity.
  • Claimants with an outstanding overpayment balance will be notified of the availability to make an application for the waiver.
  • Each claimant must complete an application within 30 days of notice being issued if they wish to be considered for a waiver to repay for an overpayment.
  • An online fillable form and phone number will be made available for claimants to make their application for the waiver.
  • A hearing officer will make a determination based on the waiver application. The decision is appealable.
  • If an overpayment is the result of a reversal in the appeals process, this is not considered “without fault” by the claimant unless the employer failed to respond timely to the Commission’s request regarding the claimant’s separation from employment.
With HB 2040, the Virginia Employment Commission will not issue a notice of overpayment until the decision is final. Additionally, the legislation grants the agency authority to suspend sending overpayments to collections until July 1, 2022.
At this time, claimants do not need to take any action in the waiver process. Once the bill is enacted on July 1, 2021, the VEC will notify claimants with an outstanding overpayment balance regarding the availability to make an application for the waiver. Additional information and updates will be provided on the VEC’s website.