SD 39 Massachusetts Senate · 194th Legislature (2025-2026)

An Act to correct non-fault unemployment insurance overpayments

This bill (SD 39) amends Massachusetts unemployment insurance law to better handle overpayments made to individuals who were not at fault. It limits deductions from future benefits for non-fault overpayments to 10% of the weekly benefit rate and requires the department to stop recovery efforts for 60 days after notifying recipients of their waiver rights. The bill expands automatic waiver eligibility for overpayments when recipients are on programs like SNAP, TAFDC, or SSI, or when overpayments resulted from department errors (e.g., pandemic program mix-ups). It also sets a 3-year deadline for recovery actions in non-fault cases, compared to 6 years previously. The changes directly affect unemployed individuals who received benefits by mistake but did not cause the error.
Bill status Introduction 0 of 4 stages cleared
Introduction
Committee Review
Floor Vote
Governor