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.â€
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.â€
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.â€
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.â€
