Labor Dept

Labor Dept. claims Loudon County man owes $24K for overpaid benefits

LOUDON COUNTY, Tenn. (WATE) — A Loudon County man received a notice from the state that he owes over $24,000 in unemployment benefits.

Mike Cooper, who was self-employed, started drawing unemployment during the pandemic, but the Labor Department claims the appeals he made were late. Cooper is defiant, claiming he was eligible for the benefits. He shared that he does not intend to repay the money.

Cooper, whose health is bad, just qualified for Social Security disability benefits this month. Four years ago, he was self-employed when the pandemic began. Under the Pandemic Unemployment Assistance Program, state and federal benefits were provided to self-employed Tennesseans.

Figures from the Tennessee Labor Department show Cooper received $720 a week in state unemployment benefits and federal stimulus money during the pandemic. The single dad of a teenage daughter said the money got him through that tough time of being without a job four years ago. Last month, the state sent a statement that he owed the state labor department $24,000.

Cooper doesn’t believe he’ll ever be able to pay the money back and said he doesn’t understand why he’s being penalized for the overpayment. He showed us the original qualification letter sent by the state in April 2020.

“I’m eligible. I think I’m eligible. I did everything that was required of me,” said Cooper.

After receiving a letter dated July 2021, Cooper knew something was up. He said after reviewing his unemployment eligibility, the state wrote saying he didn’t provide the proper information. So, Cooper was required to send pictures of his driver’s license, a selfie holding his driver’s license, his social security card, proof of address and tax documents. But it did no good.

“Why am I disqualified when I was approved when all the documents, everything they need was sent? I did exactly what they wanted me to do,” said Cooper.

So, he fought the decision that he didn’t provide the proper documentation to prove his eligibility.

“The conclusion was I did nothing wrong through the tribunal appeal authority,” said Cooper.

The conclusion states: “There is no evidence the claimant knowingly made false statements to obtain benefits.” The issue however was returned to the Labor Department and Cooper got more bad news.

“I wasn’t fraudulent doing one thing. But it went back to the agency and it started all over again,” said Cooper.

He now has to repay all the money he received in unemployment benefits.

“Everything I was supposed to do, I have done,” said Cooper. “I was eligible. Everything I received I was eligible for. And I have no intention of paying anything back.”

10% of the $24,000 is due immediately. Cooper told us there’s no way he’ll be able to afford to send the labor department that first payment of $2,400. In a few weeks, Cooper said he will be receiving his first Social Security disability check, of about $1,000 a month.

So, can the state garnish some of that money?

According to federal law, in most cases, bill collectors cannot garnish disability benefits. However, there are exceptions, including when the debts are owed to the government.

The Labor Department said Cooper waited too long to appeal the state’s first argument nearly two years ago that he was ineligible for unemployment benefits. The state said Cooper claimed he had not read his email, but, the state says, that is no excuse. The Labor Department concluded that Cooper owes the overpayment of $24,000.