ILLINOIS (WAND) - Some workers who received money in a pandemic unemployment relief program have been asked to pay back the financial assistance.
WREX interviewed hairstylists Brittany Welch and Carly Inman, who said the Illinois Department of Employment Security (IDES) asked them to pay back money claimed in the Pandemic Unemployment Assistance (PUA) program. As part of the Cares Act, PUA gives relief to workers who do not qualify for unemployment.
Welch told the station she was aware she should get about $198 each week in the program, but her payments were almost double that amount. She said she attempted to get clarification from the state and was "disconnected or hung up on" 783 times. Those attempts to reach out were documented and screenshotted, according to her.
She said the state caught up to the error and sent her a letter wanting her to pay back $4,883, which is roughly all the money she received.
"So they're asking me to pay back something," Welch said. "I don't have an overpayment at all, that's all I got."
Inman had a similar story and said IDES asked for about $2,800 to be returned. A woman by the name of Marie Pastion said she must pay about $1,600 back.
The IDES sent out a statement to WREX explaining why people are ending up in this situation. According to the department, its hands are tied by federal guidance. The statement reads:
"Overpayments within the Pandemic Unemployment Assistance (PUA) system is an unfortunate consequence of a federal system haphazardly put together without much foresight concerning how it would negatively impact PUA claimants (self-employed, sole proprietors, 1099 workers, etc.). The federal guidance given to every state for PUA systems allows a PUA claimant to establish their own weekly benefit amount prior to verification by state unemployment systems. Additionally, the same federal guidance does not allow states to waive the recoupment of PUA overpayments, which has resulted in claimants, under federal requirements, being required to pay back funds otherwise needed for their families, rent, mortgages, and groceries. This is especially concerning for claimants and state unemployment agencies given the impending expiration of PUA on December 26, 2020, barring additional federal action from the federal government. At this point, unless there is a change to the federal guidance provided by USDOL, or unless there is federal action taken with a new or expanded federal stimulus package, Illinois, and every other state in the Union, is required to recoup overpayments made within the PUA system. While IDES understands the additional financial burden this places on claimants and their families, the Department is prepared to work with claimants impacted to best approach repayment options and plans."
Gov. JB Pritzker issued remarks about this situation and said only Congress can act to remedy the situation the system itself created. He said Illinois is not the only state dealing with similar issues and added the program was made "quickly and without a lot of thought" at the federal level.
Welch told WREX a lot of people will have to declare bankruptcy if they are required to follow through and pay back the funds. She called on the state to "step in and not do this to us."
