Indiana House Supermajority Rejects Effort To Stop Unfair Practices Aimed At Unemployed Hoosiers

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gail riecken

INDIANAPOLIS – Indiana House Republicans yesterday (Mon., Feb. 9) rejected an effort by State Rep. Gail Riecken (D-Evansville) to stop the state Department of Workforce Development (DWD) from unfairly requiring some Hoosiers to repay unemployment benefits.

The House supermajority defeated an amendment offered by Riecken that would have provided an exemption to DWD rules requiring repayment of certain unemployment benefits that were distributed after July 1, 2011. Riecken offered the amendment to House Bill 1186.

“This proposal would have benefited a large number of people who live and work in the Evansville area who received benefits when they weren’t supposed to, simply because the state did not notify them of changes to the unemployment insurance law that took place back in 2011,” Riecken said.

“Through no fault of their own, these individuals thought they qualified for the benefits, received them, then were told that they had to pay them back.

“Picture yourself in their shoes,” she continued. “These people applied for unemployment benefits in good faith, as they had in the past. Then they received a collection notice from the DWD telling them that the policy is changed and they need to pay the money back.”

The dispute primarily involved school corporation employees who are traditionally laid off during months when school is not in session, such as bus drivers, teacher aides, and cafeteria workers.

“Even though the agency made the mistake in notification,” Riecken said,” the DWD has demanded reimbursement because the agency reasons that the workers’ time off was an ‘unpaid vacation.’ An existing provision enables the DWD to waive benefit payback under certain circumstances, but the agency has failed to exercise this right.

“This ordeal has caused extreme economic hardship for many people across Southwest Indiana. The money isn’t just sitting in their bank accounts, because they have to care for themselves and their families.”

On average, these workers are being asked to repay between $2,000 and $4,000. In one instance, Riecken said one person says she must repay $30,000.

“In effect, these workers are being told that this matter is their fault, not the DWD,” Riecken said. “There was at least one instance in which a bus driver was told by DWD workers that she should apply for unemployment benefits, even though agency workers were unsure of the impact of the new laws.

“The only option for some people has been to file bankruptcy to escape the unending cycle of worry and hard times,” she noted. “Tax returns can be seized to cover unjust fees leveraged against those individuals. This is a deplorable outcome for people who simply filed for unemployment benefits.”

In addition to the proposal offered by Riecken, supporters of the change have thrown their weight behind Senate Bill 111, which has yet to get a hearing in that chamber. The Senate bill was the focal point of a Statehouse rally on Monday.

“Based on the vote on my amendment, it would appear that the supermajorities are not interested in making this change, even though it’s the humane thing to do,” Riecken said. “But that doesn’t mean we won’t stop trying to do what’s right.

To offer the best reason for the proposal, Riecken cited the words of an Indianapolis bus driver named Terri Wells, who spoke during Monday’s rally.

“Bus drivers truly make a difference in the lives of the children, and that means something to us,” said Wells. “We are responsible for the safety of your children, your nieces, nephews, and grandchildren.

“We didn’t ask for this. It’s a tough situation because we personally do not have the money to pay what the DWD says we owe. We request for the fees to be rightly waived so that we can move on with our lives.”

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37 COMMENTS

  1. If some rich folks got state incentives to “create jobs” and they flopped, the debt would just be written off. If it’s the working poor receiving a few bucks? Hey we better make sure we ruin their lives not just stop the benefits going forward.

    • Wow…remember Winnecke’s Earthcare…a so-called loan to an unproven outfit in the amount of $200,000…for political purposes, his buddy Yeager rejected calling the loan and re-upped the loan until after the November elections…few eat caviar and the school bus drivers eat cake…

  2. $30,000 overpayment in unemployment? I call bogus. I once errantly received a $15,000 check from the state. Maybe I should have been allowed to keep it?

  3. The rules of the game were changed without informing the workers. This was a very worthwhile amendment offered by Rep. Riecken,–sad to hear it was not considered.

  4. So, ignorance of the law IS an excuse according to Ms. Riecken? Perhaps she learned that during her stay in Illinois a few years back? And $30,000 overpay for unemployment comp for a EVSC employee during summer break?

    She will be an outstanding Democrat machine mayor/mortician for a dying town.

    • We suppose she will be a much better alternative then Mr. Crony Capitalist a/k/a Winnie…let’s see…HCW, Earthcare, the owner of the old CVS at the corner of N. Main & Columbia…sat on the market for nearly three years and hear comes Mr. Crony with 500k on a building worth least than 200k…of course the same individual allegedly is releasing rent free at the corner of 4th & Main street…but, why not when he is married to Christmas Carol and his Elf is Kelly…so…five more years of Mr Crony not only will we be dealing with a dying town but a broke on as well…oh, we forgot the nitwittery statement of Sinister Schaefer “you have to spend money to be prosperous” i.e. spend money we do NOT have…sounds like we live in Evansville, DC…

  5. Except, they were informed. Don’t rely on Gail to tell the whole truth.They’re not unemployed.
    “They have reasonable assurance they’re going back to work,” said Joe Frank, communications director for the Department of Workforce Development.

    The law was changed in 2011 though, making drivers and head start employees no longer eligible for unemployment benefits.

    “What we did was we sent out a postcard to all Indiana employers that have anyone employed in the state of Indiana,” said Frank.

    DWD officials say they made it crystal clear that the unemployment benefits were no longer valid. They were issued anyway however, and now, years later, drivers have received invoices demanding that money back.

    “The reason why there’s a lot of overpayment notices going out now is because the supreme court ruled that not only is the law correct, these folks are to repay these overpayments,” said Frank.

    “They’re the ones that have to hit the button, yes you’re eligible, no you’re not eligible, enter, done, boom, there’s your money,” said Wells.”

    http://fox59.com/2015/02/09/thousands-in-unemployment-benefits-demanded-back-from-in-school-bus-drivers/

  6. Anytime anybody overpays me I refund that amount just because it’s the right thing to do and it promotes good Karma.

    Those funds are collected from the workers and their employers and just because a “mistake” was made is no reason to allow a few to receive a bonus.

    I would however provide an interest free easy repayment process.

    • I would think a payment plan could be arranged, and perhaps it would be a good gesture to abate any fees or interest, but to just cancel the debt is unfair to all taxpayers.

  7. I think that your suggestion of an interest free easy payment process seems the fairest/best way out of this unfortunate situation for all concerned.

  8. It’s amazing that school bus drivers were ever allowed to collect it to start with.

  9. Early Head Start
    Child Care Partnerships:
    The Budget proposes $650 million in FY 2015 for Early Head Start Child Care Partnerships, an increase of
    $150 million above FY 2014. These funds will support and expand the availability of high quality early learning programs for tens of thousands of infants and toddlers through competitive grants to new and existing Early Head Start programs that partner with child care providers, especially those receiving federal child care subsidies. In addition, the Budget provides $120 million above FY 2014 to strengthen services for children served by the Head Start program. Together, these investments total $8.9 billion, an increase of $270 million over FY 2014.

    * * * * * * * * * * * * * * * * * * * * *

    INDIANA 2015 BUDGET
    “And building on the historic first step we took last session, we will invest $10 million a year to fund scholarships for our new pre-K pilot, because every Hoosier child deserves to start school ready to learn.” (State Legislature)

    * * * * * * * * * * * * * * * * * * * * *

    Why are two separate taxpayer funded programs needed for 4 year old pre-kindergarten children? If the $8.9 billion federal program is not getting the job done, perhaps we should eliminate that program and keep our share of those funds within our state.

  10. Gail Riecken has the proper take on this. The heartless anti-educationeers here, the fake toughies, think nothing of taking their spite out on folks who actually do something worthwhile for the children. Let ’em keep the money.

    • Sure, let’s just let them keep money from the tax paying parents. Bus drivers are more important than parents. Get a summer job and pay back what you took just like any other person would have to do.

        • Hey Bent, I know that because unlike you I create jobs for others and actually have to pay unemployment “insurance.” . But if I pay it, then someone has to earn it. So in the end it is the working woman who is asked to give up what she worked for to give to someone who didn’t work for it.

          Oh, but you’re right, it is an insurance not a tax. That makes it feel totally different. Sorry I oversimplified it for your oversized genius brain.

          The law was clear. They should not have taken it, and the court ruled they need to pay it back just like everyone else would have to.

          • I’ve never made a claim on my homeowner’s insurance, so how dare another policyholder make a claim against my hard earned premium dollars!

          • Fine, let people making false claims drive up your rates. But then this insurance is one you will never pay.

          • “Hey Bent, I know that because unlike you I create jobs for others and actually have to pay unemployment “insurance.” . ”

            Whatever pissing contest you have with Benton…

            You ‘create’ jobs. Fantastic. If you’re one of the good ones I’m sure it’s turning you a profit, benefitting those who work for you, and benefitting society in the form of the wages and taxes you pay. But it would be nice if the ‘creators’ would occasionally step down off their high horse and recognize that most of the folks who are working for those ‘creators’ are busting their asses as well, and said ‘creators’ wouldn’t have a pot to piss in if it wasn’t for us poor grunts. Worker =/ = worthless.

            Perhaps that wasn’t your intent, but it sure as hell sounded like it.

        • During Mitch’s last days in office the state of Indiana repaid $900 million dollars to the federal government for money borrowed to pay unemployment benefits. People received more in unemployment benefits than was paid in. The biggest abuse and abuser of the unemployment compensation program is seasonal union employees. They normally get off 2-4 months during the winter, go to Florida and receive unemployment benefits. For low paid workers to receive unemployment is one thing but for high paid union workers that are in the top 15% of high paid workers in this country it is wrong. The 900 million that Mitch repaid the feds was tax payer money, so unemployment insurance is not insurance it’s welfare to the wealthy.

          • Need to go back just a few years more. That state fund was lush following a
            good run of jobs. The rate was cut for employers to pay into, which helped create
            the fund balance to drop when the recession hit.

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