Overpayment on CARES Act Programs

The Class Action Notice is for the lawsuit, Duran v. New Mexico Department of Workforce Solutions, D-101-CV-2023-00698. During the height of the COVID-19 pandemic, many New Mexicans were incorrectly overpaid unemployment insurance benefits. Many of these overpayments were made through no fault of the claimant and may be eligible for a waiver (overpayment forgiveness) from the New Mexico Department of Workforce Solutions.

If you received this notice, you may be a member of the group of people affected, called the "class". The notice gives a summary of the terms of the proposed settlement agreement, explains what rights class members have, and helps class members make informed decisions about what action to take. If you received this notice, a PDF version will be available in your online Unemployment Insurance Claimant homepage (https://www.jobs.state.nm.us) under "View Correspondence".  

The New Mexico Department of Workforce Solutions (NMDWS) has sent the notice to those that have been identified as part of the Class. NMDWS encourages all claimants to ensure their contact information is up to date with NMDWS by logging in to their Unemployment Insurance Tax & Claims System account at https://www.jobs.state.nm.us and clicking on View and Maintain Account Information on their claimant homepage or by calling the Unemployment Insurance Operations Center at 1-877-664-6984 Monday through Friday, 8am – 4:30pm.   

The CARES Act created new temporary pandemic-related unemployment compensation programs. NMDWS identified people that were paid benefits that they were not entitled to. If it was determined that you were paid too much in federal pandemic unemployment payments, NMDWS established an overpayment. In normal circumstances, someone with an overpayment is responsible for paying the money back, but NMDWS recognizes that the pandemic was not a normal circumstance.  

NMDWS is currently reviewing overpayments to determine if they are eligible to be waived under an “automatic waiver.” You do not need to submit an individual request to be considered under one of the automatic waiver scenarios.  

Any overpayments resulting from fraud are not eligible for waiver. 

If you are eligible for an automatic waiver, NMDWS will send you a written notice.

If you received written notice that you do not need to repay NMDWS for an overpayment of federal pandemic unemployment benefits, this means that NMDWS has reviewed the overpayment and determined that you do not have to repay this money. You do not need to return any money. You do not need to do anything for this overpayment. 

Importantly, while you do not have to pay back the overpayment listed on the notice NMDWS sent you, this waiver only applies to the overpayment(s) listed in the notice and does not apply to any other overpayment you may have been assessed by NMDWS.  

You may be eligible to apply for an individualized waiver. Log in to your Unemployment Insurance Claimant account at www.jobs.state.nm.us, and look under 'View Correspondences' for information on how to apply. you may also contact the Unemployment Insurance Operations Center at 1-877-664-6984, Monday through Friday, 8 a.m. to 4:30 p.m.  

NMDWS will issue refunds to people who receive blanket waivers if they already repaid some or all of their federal pandemic unemployment benefit overpayment. You will receive a check in about two weeks after you receive the notice that you got a waiver. Make sure your address is up to date by either logging into your Unemployment Insurance Tax & Claims Online System account (https://www.jobs.state.nm.us) or call the Unemployment Insurance Operations Center 1-877-664-6984, Monday through Friday 8:00 a.m. to 4:30 p.m. 

A person will qualify for a waiver depending on how they answer the two questions on the application discussed below.

Question 1: Were you at fault for the overpayment? To qualify for a waiver, your answer to Question 1 must be "No." Any other response will disqualify you from getting a waiver, although you may appeal any denial of your waiver application. Facts that mean you were not at fault and could answer "No" to this question include:

• The overpayment was due to NMDWS's error or mistake. If it was, you may answer "No" to Question 1.
• Your employer provided incorrect or untimely information to NMDWS. If this happened, you may answer "No" to Question 1.
• You provided all the information requested by NMDWS but NMDWS did not use the information or delayed using the information. If this happened, you may answer "No" to Question 1.
• NMDWS's conflicting, changing, or confusing information or instructions caused you to provide incorrect information. If so, you may answer "no" to Question 1.
• You had a question about your Federal Pandemic Benefits and tried but were unable to reach NMDWS to ask your questions. If so, you may answer "No" to Question 1.
• You did not understand what information NMDWS needed from you. If so, you may answer "No" to Question 1.

YOU ONLY NEED TO SATISFY ONE OF THE ABOVE FACTORS TO ANSWER "NO" TO QUESTION 1. Question 2: Would requiring you to repay the overpayment create a financial hardship for you or your family? In order to qualify for a waiver, your answer to Question 2 must be "Yes." Any other response will disqualify you from getting a waiver, although you may appeal any denial of your application. Answers that would satisfy this question include information such as the following:

• Repayment would hurt you financially. If true, you may answer "Yes" to Question 2.
• You gave up something or are in a worse financial position because you relied on receiving and keeping these unemployment payments. If true, you may answer "Yes" to Question 2.
• Requiring repayment would be unconscionable, for example because it would be extremely unfair or it would undermine your financial stability. If true, you may answer "Yes" to Question 2.

YOU ONLY NEED TO SATISFY ONE OF THE ABOCE FACTORS TO ANSWER "YES" TO QUESTION 2.

Any person whose Federal Pandemic Benefit overpayment is the result of knowing fraud, misrepresentation, or false statement by that person will not be granted a waiver.

• Any person whose overpayment is not related to Federal Pandemic Benefits. If your overpayment is for State Unemployment Insurance (STUI) benefits, NMDWS is prohibited by New Mexico law from waiving your STUI overpayment. Overpayment waivers are strictly limited to benefits received under the CARES Act and related federal pandemic benefit programs.
• Waiver applications made after February 2, 2027 will not be considered. There is no right of appeal for untimely applications. There are NO EXCEPTIONS to this deadline.