States Demand Refunds For Unemployment Money Paid In Error

For months, Stephen Ordway had March 13 circled on his calendar.

That was opening day for Dos Mexican Eats, his new restaurant in Dover, N.H.

Then eight short days after selling his first burrito, the pandemic forced Ordway to close down.

"It was terrible," Ordway said. "That's an understatement."

Like millions of Americans who lost their source of income due to COVID-19, Ordway filed for unemployment benefits this year. The payments — roughly $750 a week — served as a financial lifeline for the new business owner.

Then came the hook: in late July, he received an overpayment demand letter from the New Hampshire Employment Security office. The notice said that he wasn't entitled to benefits after all because the agency determined he left his previous restaurant job for personal reasons.

The state wanted him to return nearly $12,000.