Nearly 30,000 workers have only six months to apply for forgiveness or risk continued collection efforts by the state

Contact: Sierra Ludington, (505)300-1099

ALBUQUERQUE, NM– Years after the Covid-19 pandemic, tens of thousands of New Mexicans may still have unemployment debt on their accounts from benefits they received in 2020 and 2021—and may not know that the debt can be forgiven. Nearly 30,000 workers covered by a class action settlement have until February 21, 2027 to apply for forgiveness.

The debt stems from overpayments of pandemic unemployment benefits that workers in New Mexico were told they had to repay due to administrative errors by the New Mexico Department of Workforce Solutions (DWS). Despite the federal government allowing states to forgive much of this money, 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. 

The New Mexico Center on Law and Poverty (NMCLP) 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 roughly 60,000 workers who became eligible for a refund and/or forgiveness of the unemployment debt. 

As of now, nearly 30,000 class members of Duran v. New Mexico Department of Workforce Solutions still have not applied for debt forgiveness, and must do so by February 21, 2027. Some may not realize that they still have an outstanding unemployment debt or that the debt may be eligible for forgiveness. Others may not have received notices from DWS because their contact information has changed since they received pandemic unemployment benefits. If they do not apply by the deadline, the debt will remain on their account, future unemployment benefits will be withheld, and DWS will continue to try and collect it–including garnishing their tax refunds or placing liens on their real estate. 

“We want to encourage everyone who received unemployment benefits during the pandemic to check their DWS account and find out if they are eligible for forgiveness,” said Stephanie Welch, Workers’ Rights Director at NMCLP. “Unemployment is a critical program that protects workers and their families when the unimaginable happens–like a global pandemic. We want all of these workers to get the forgiveness they are owed, rather than have this debt taken out of benefits they may need in the future.”

To find out if they are eligible for forgiveness, people need to login to their DWS account or call DWS. 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.