Workforce Solutions says federal guidance, challenges led to overpayments
NEW MEXICO (KRQE) – The New Mexico Department of Workforce Solutions has suspended efforts to collect unemployment overpayments received during the pandemic. This is following a series of administrative errors.
The department says they experienced unprecedented challenges during the pandemic, going from processing between $100-125 million in claims a year to over $1 billion. But what ultimately led to the oversight was shifting federal guidance.
Millions in relief expected following lawsuit against NM Dept. of Workforce Solutions
'They would get new information from the federal government saying, 'Actually, this is how you administer the program,' or, 'This is how these two programs interact,' and then they would have to go back and recalculate payments,' says the Department of Workforce Solutions secretary Sarita Nair.
Last month, a settlement was reached to resolve any claims related to overpaid pandemic unemployment benefits. This settlement will forgive 100% of CARES Act overpayments to those who qualify.
It will also provide automatic waivers, individualized waiver applications, and refunds to those who were charged with overpayments.
'We have waived over $100 million of overpayments. So, it was a significant issue. Some folks didn't even know that they ever had an overpayment. And that's what we've been able to just take care of,' says Nair.
Over $22 million in refunds and waivers have been issued to New Mexico workers so far.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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