Dems call on restitution for victims of unemployment agency botch-up

moneyThere’s a fight brewing in the Legislature over compensation for people wrongly accused of ripping off the state’s unemployment compensation system.

Democrats say the state’s response has been too little, too late to people who were wrongly tagged by a computer program for fraud. The error means thousands of people who collected benefits after losing their jobs were improperly sanctioned.

House Democratic Leader Sam Singh says it’s not enough to simply repay wrongly accused workers garnished wages.

“Many of them have legal costs. They’ve got legal counsel. You’ve probably read in some of the papers that people actually went into bankruptcy, actually caused divorces.”

Hearings on the fiasco begin this week. The state also faces a class-action lawsuit.