New Mexico DWS Unemployment Overpayment Settlement

If you were overpaid pandemic unemployment benefits, you may be eligible to claim forgiveness and receive a refund of monies paid back from a class action settlement.

The New Mexico Department of Workforce Solutions has agreed to settle a class action lawsuit for alleged mismanagement of unemployment benefit overpayments during the COVID-19 pandemic.

Who is eligible for the settlement?

Class members include:

• You received federal pandemic unemployment benefits such as Pandemic Unemployment Assistance (PUA), Pandemic Emergency Unemployment Compensation (PEUC), Federal Pandemic Unemployment Compensation (FPUC), or Mixed Earner Unemployment Compensation (MEUC)
• You were informed by the New Mexico Department of Workforce Solutions (DWS) that you were overpaid and were required to repay the amount overpaid

How much is the settlement payout?

Class members may receive:

• DWS has temporarily halted the collection process from class members
• Automatic forgiveness of the overpaid amount
• Refunds of any amounts already repaid to DWS once overpayment is forgiven
• Set up a process in which class members that do not receive automatic forgiveness can automatically apply for a waiver of their overpayment
• DWS will process waiver applications and denials will be given the opportunity to appeal

No action needed to participate in the settlement

• Class members do not need to file a claim to receive overpayment forgiveness or a refund of any amount paid back.
• DWS will automatically evaluate overpayments for forgiveness and notify individuals of their status.
• This process may take several months
• Class members should verify that DWS has up to date contact information.

Is proof required?

Additional documentation is not required. Class members do need to ensure that DWS has up-to-date contact information. This can be done by updating your online DWS account or calling (877) 664-6984, Monday through Friday, between 8:00 AM and 4:30 PM.

Settlement fund

The settlement fund will cover:

• Refunds to any class members that have paid back some or all of the overpayment and subsequently are granted forgiveness
• Attorneys' fees and costs up to $400,000
• Service payment to the named class representatives of $10,000 each

Important dates

Fairness Hearing: January 9, 2025

When is the Duran v. New Mexico Department of Workforce Solutions payment date?

DWS will process overpayment evaluations and refunds. Class members will be notified of their forgiveness status and any refunds due. The court will oversee the settlement until all actions are completed. This process may take several months

Why is there a class action settlement?

The lawsuit alleged that the New Mexico Department of Workforce Solutions failed to provide adequate notice and recourse for overpayments of federal pandemic benefits, leading to financial and personal consequences for claimants. The settlement was agreed to in order to avoid further litigation

Source

• Official Settlement Website