Bill would waive repayment of some unemployment overpayments

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FRANKFORT, Ky. (WTVQ) The House of Representatives unanimously passed legislation that establishes criteria and procedures in which unemployment overpayment may be waived for situations when a recipient receives unemployment benefits they did not qualify for or were paid the incorrect amount of unemployment benefits.

HB 468 is sponsored by Rep. Josh Branscum, R-Russell Springs.

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“Many of our citizens are hurting as they try to provide for their families. Asking them to reimburse overpayments would cause further hardships,” said Branscum. “Kentucky is one of 10 states that does not have a statutory process in place to handle unemployment overpayment when the employer is not at fault. This bill is a great step forward in helping Kentuckians that are doing all they can to simply make ends meet.”

HB 468 would require the secretary of the Labor Cabinet to waive unemployment insurance overpayment debts if the overpayment was due to an employer or agency error, not the result of fraud or misconduct by the recipient, and repayment would cause economic hardship to the recipient.

HB 468 will move to the Senate for consideration. Details of the measure can be viewed on the Legislative Research Commission’s website at www.legislature.ky.gov.