Guam labor department recovered $8.8 million in PUA overpayment

By Pacific Island Times News Staff

As part of a continued federal mandate following the conclusion of the Pandemic Unemployment Assistance program, the Guam Department of Labor continues to recover overpaid benefits distributed during the Covid-19 pandemic.

Of the approximately $23 million in total overpayments, the department said it has recovered more than $8.8 million through a combination of recovery efforts, adjustment of errors, waivers and arranged payment plans.

The department said most of the collections were made through recipients who initiated contact with GDOL. Guam’s overpayment rate was as low as 2.8 percent, significantly below the national average of 17 percent. 

GDOL has distributed over $809 million in PUA funding. A total of 133,535 applications were received, of which 23,752 were deemed eligible.

GDOL has prioritized assisting individuals who qualify for relief under federal waiver guidelines, especially in situations where people may not have realized they were no longer eligible or didn’t fully understand the reporting requirements.

PUA was established as a temporary emergency benefit during a time of national crisis to support workers impacted by the pandemic, and with that came a requirement by the U.S. Department of Labor for states and territories to audit and review payments issued. As a result, overpayment notices have been going out regularly since 2023 to claimants identified through these audits and systems-based reviews.  

PUA rules allowed for initial payments to be made based on a self-certification basis to facilitate payment of these emergency benefits. Overpayments are the result of ineligibility found after GDOL has validated and reviewed a paid claim based on a claimant’s self-certification.

Overpayments are common in all unemployment-related programs across the nation and are typically resolved through offsets and collections efforts by the state agency administering Unemployment Insurance programs.

However, because Guam does not operate its own regular unemployment insurance program, benefit offsets are not commonly applied, making direct repayments or waivers the primary means of recovery of overpayments.

“We have successfully approved more than $5 million for claimants who sought waivers on their overpayments and submitted the necessary documentation,” said GDOL Director David Dell’Isola. “I’m grateful for the continued support of USDOL and the Secretary of Labor, as well as the Governor and Lt. Governor, who encouraged us to use every appropriate resource to help our people.” 

Overpayment letters are produced from a system-generated list based on data reviewed through established federal processes. Notices have been issued periodically as part of an obligation to continue this program recovery.

Recipients who receive a notice are encouraged to contact GDOL with any questions or concerns.

“We’ve helped hundreds of residents through this process,” Dell’Isola added. “If you believe an overpayment was made in error, or if you’d like to set up a payment plan, our team is available and ready to work with you. We are here to help you understand why you have an overpayment and work with you to find a resolution.”

The department reassured recipients that all communications and records related to PUA, including overpayment notices, are protected under federal confidentiality regulations.

Although PUA benefit disbursements have ceased, the overpayment recovery process remains ongoing and is federally funded.

It is currently scheduled to continue through September unless extended by USDOL. GDOL will remain compliant with these requirements and is committed to administering the program in a fair and transparent manner.

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