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States must refund unemployment benefits they clawed back in error, Labor Department says. It may take a year


Unemployment applications are seen as City of Hialeah employees hand them out to people in front of the John F. Kennedy Library on April 08, 2020 in Hialeah, Florida.

Joe Raedle/Getty Images

However, the CARES Act didn’t offer a safety valve for states to forgive overpayments. That essentially meant states had to try to collect the funds.

Texas, for example, sent notices to about 260,000 PUA recipients between March 1 and Oct. 1 and tried to claw back $214 million.

Refunds and waivers



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