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Applicant errors, not fraud, main source of $70 million in unemployment benefit overpayments


Lawmakers indicated they would support waiving repayments for non-fraud overages
An unprecedented surge in applications for unemployment benefits overwhelmed the state Division of Employment Security, Assistant Secretary Pryor Gibson told state lawmakers this week. And nearly a year into the pandemic, it is still struggling. 
More than 1.4 million North Carolinians have applied for unemployment benefits since last March, when the COVID-19 pandemic first shut down large segments of the economy and led to record layoffs.
“Our offices continue to get calls that we can’t often get answers for in dealing with [DES],” said Sen. Chuck Edwards (R-Henderson), co-chair of the Joint Legislative Oversight Committee on Unemployment Insurance, in Tuesday’s meeting.  “North Carolina citizens deserve an employment system that works for them.” ....

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N.C. overpaid more than $69 million in unemployment benefits last year - Carolina Journal


In yet another sign of turmoil at the N.C. Division of Employment Security, officials announced this week the division overpaid more than $69 million in unemployment benefits last year. 
The pandemic causes a sharp spike in claims in 2020, with nearly a third of workers filing for unemployment. State and federal employment programs paid out more than $8 billion to North Carolinians last year. 
NCDES Assistant Secretary Pryor Gibson told the Joint Legislative Oversight Committee on Unemployment Insurance on Tuesday, Jan. 26, that a combination of more money passing through the system and additional programs resulted in the overpayments. For example, $45 million of the overpayments came from the Pandemic Unemployment Assistance, a new federal program that provided the jobless with an additional $600 per week and included nontraditional claimants such as independent contractors. ....

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