When SARS-CoV-2 (Covid-19) began gripping the United States, The United States Congress enacted a stimulus package that included a $600 increase in the amount an individual can collect in unemployment insurance benefits. Shortly after the law was enacted, and the State of Arizona began receiving federal funds, the Arizona Department of Economic Security (“DES”) started to implement the increase for the individuals who qualified.
As unemployment numbers increased at a high rate, DES became inundated with the influx of increasing unemployment claims. Local news outlets reported cases of lengthy delays, fraudulent applications, and even individuals receiving benefits who did not even submit an application. It appears that DES then began erring on the side of safety and providing individuals with unemployment insurance benefits even though there may be doubt over whether the individual met the qualifications. Now that the unemployment numbers have decreased, and DES has been able to catch its breath, DES has been reviewing individuals’ applications more thoroughly and determining whether the individual should have received the CARES Act assistance.
If DES determines that a person who received CARES Act assistance in fact did not qualify for the aid, DES will send the person a notice letter, stating why he or she should not have received the aid, and provide notice that the person will be responsible for paying the aid back. The amount can be substantial and reach several thousand dollars. Fortunately, if the person believes DES is mistaken, and that he or she did qualify, the person can appeal the determination. Once the appeal is received by DES, the person will receive a confirmation number, and a hearing will be scheduled with the Office of Appeals. It is important that if you wish to appeal the determination, you do so before the deadline stated in the Notice.
If you have any questions regarding the DES appeal process, contact our office to schedule a consultation.