FOR IMMEDIATE RELEASE

MAY 19, 2026

Contact: Sierra Ludington, (505) 300-1099

ALBUQUERQUE, NM –– Workers across the state received much-needed pandemic unemployment benefits but later were told they owed money back due to administrative errors. Despite the federal government allowing states to forgive much of this money, the New Mexico Department of Workforce Solutions (DWS) intercepted people’s tax refunds and future unemployment benefits, placed liens on their real estate, threatened to garnish their wages, and put them on difficult payment plans. This deepened the incredible financial strain on New Mexicans during the COVID-19 pandemic.

The New Mexico Center on Law and Poverty and Ives and Flores Law Firm filed a lawsuit against DWS to stop these aggressive actions, get overpayments forgiven, and get money refunded to people. This lawsuit resulted in a class action settlement including 60,000 New Mexicans who became eligible for a refund and/or forgiveness of the unemployment debt. 

As of now, nearly 30,000 class action members of Duran v. New Mexico Department of Workforce Solutions still have not claimed their refunds or forgiveness, and must apply by February 21, 2027 or the debt will remain on their account and future unemployment benefits will be withheld. 

“When DWS told me I owed them thousands of dollars back, I panicked. I did everything right when I applied, and I had spent all of the money on my rent and living expenses. I had to give them all of my savings to pay it back, so it was such a relief when I heard about the settlement. Things are expensive right now and that money helps a lot,” said Dimitri Viramontes, a class member of the lawsuit.

Many class members have not been notified due to incorrect contact information in their unemployment account. Most of the New Mexicans who have not received relief reside in Albuquerque, Las Cruces, Santa Fe, Rio Rancho, Roswell, Jal, Clovis, Farmington, and Los Lunas. However, there are class action members in nearly every city and town across the state.

“Workers turned to this program for help during an unprecedented crisis and many were left worse off than before. This settlement is an opportunity to repair that harm–but we still have to reach 30,000 New Mexicans who are owed relief,” said Stephanie Welch, Workers’ Rights Director at New Mexico Center on Law and Poverty.

To find out if they are eligible for a refund and/or forgiveness, people need to login to their DWS account or call DWS. If they are potentially eligible, they will be asked to answer two yes/no questions so DWS can determine if they qualify. More information for class action members can be found at www.nmpovertylaw.org/ui.