Mistake: Thousands Told to Return Unemployment Overpayment

BATON ROUGE (AP) — A programming mistake caused more than 4,000 out-of-work Louisiana residents to get notices saying they’d been overpaid thousands of dollars in unemployment compensation and had to return the money, officials say.

“I apologize,” Louisiana Workforce Commission Ava Dejoie told The Advocate. She said incorrectly programmed computers miscalculated benefits and automatically sent the notices to people who applied on two days in March.

The commission has sent nearly 8,500 “cancellation adjustment notices” to more than 4,300 people, commission media office staffer Frededreia “Dede” Dunham wrote in an email Friday to The Associated Press. Most people got two overpayment notices, one for state payments and one for federal payments, she said.

- Sponsors -

“There are around 20 overpayment cases that have not been canceled yet. There are variations within these cases which require further steps to be taken before canceling,” she wrote.

Dejoie said the erroneous notices were sent Sept. 9 and 10 to people who applied for benefits on March 29 and 30.

Katherine Stephens, a legislative worker laid off in April, told WBRZ-TV that after her benefits stopped last week, she found a statement on the commission website saying she’d been overpaid. Her calls to the commission were not returned.

- Partner Content -

The Bookkeeper: Behind the Scenes of Success

From bustling restaurants and family-owned shops to contractors and creative agencies, local businesses shape the pulse of every parish. Behind many of these success...

She got two letters Monday, one saying she owed the state $4,278 and $9,600 to the federal government.

“They’re essentially asking me for $14,000, and I have 15 days to either pay it or appeal,” she said.

The commission set up an email account for people dealing with the problem, a news release said.

Digital Sponsors / Become a Sponsor

Close the CTA

Happy 504 Day!  🎉

Order a full year of local stories,

delivered to your door.

Limited time offer. New subscribers only.

Follow the issues, companies and people that matter most to business in New Orleans.

Email Newsletter

Sign up for our email newsletter