BALTIMORE — Marylanders who received unemployment insurance are now getting letters saying they owe that money back, sometimes thousands of dollars for claims dating back to the pandemic.
The state says it is clearing a backlog of unemployment overpayments from prior years that were not pursued by the previous administration. By law, the money must be recovered. But claimants tell WMAR-2 News Mallory Sofastaii they qualified for the benefits at the time and cannot repay thousands of dollars now.
Linda and Jerry Pavlovich were among those stunned to receive a notice.
“When I first showed it to [Jerry], he said, ‘Oh, that’s a scam,’ because we just couldn’t believe it. This amount of time?” Linda Pavlovich said.
The letters were real. They came from the Maryland Department of Labor and notified the couple of a benefit overpayment tied to the three weeks of unemployment insurance they collected in April of 2020.
“Over $5,800 between the two of us,” Linda said.
They are far from alone. Two other people who contacted WMAR-2 News said they now owe more than $12,000.
“I brought it to my work. There are 4 people in the building there that have received letters. Not all are the same reasons,” Linda said.
In the Pavloviches case, the letters say they failed to provide proof of identity. Linda says they were never notified that documentation was missing and were never asked to submit it.
In 2021, the department froze tens of thousands of unemployment accounts and required re-verification after widespread fraud concerns during the pandemic.
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“If this was such an important thing that you needed to notify us, you had my email because we did unemployment, you could have emailed us. You could have sent a certified letter,” Linda said.
WMAR-2 News requested an interview with the Maryland Department of Labor but was told an interview was not feasible. A spokeswoman sent this statement:
"The Maryland Department of Labor is in the process of addressing a backlog of unemployment insurance overpayments from prior years that were not pursued by the previous administration, and as part of this process has sent letters throughout the second half of 2025 to claimants regarding overpayments.
Recovering overpayments is a legally required part of the unemployment insurance system. The previous administration suspended overpayment collections during the height of the pandemic and later paused them entirely due to litigation. Both state and federal law mandate that we now seek recovery of these funds. We’ve worked diligently to resolve structural challenges to restart this process in compliance with legal requirements, particularly by ensuring that every claimant receives detailed information about their full rights to appeal or request a waiver.
Overpayments can occur for several reasons, including unreported wages, changes in availability for work, or identity theft or fraud committed by a third party, which was particularly an issue during the COVID-19 pandemic. If a claimant believes that a determination was made in error or the amount is incorrect, they have the right to appeal, and their notice includes instructions on how to do so."
Federal data shows overpayment cases are increasing. Maryland reported 515 cases totaling $1.84 million in the third quarter of last year, up from 257 cases totaling nearly $750,000 in the second quarter and 149 cases totaling $444,000 in the first. Fourth-quarter data is not yet available.
“I was very upset. I mean, he’s retired right now. Do we need to spend that kind of money and send it back? It’s money we deserve to get. We did everything right,” the Pavloviches said.
Steps You Can Take
The department says overpayments can happen for several reasons, including unreported wages, identity theft, or fraud. Claimants do have the right to appeal.
Anyone who receives an overpayment notice due to identity theft will not be held responsible for returning those funds. Claimants who received an overpayment and are experiencing financial hardship can request that the bill be waived.
The department recommends claimants follow the guidance in their notification letter and at "Overpayments: Steps You Can Take". Some actions require a form and others should be initiated through a call, email, or portal action, as indicated in the guidance. For identity confirmation, claimants should be prepared to provide a government-issued photo ID, but they should start by emailing ui.overpaymentinquiry@maryland.gov, calling 667-207-6520 (Monday through Friday, 8 a.m. to 4 p.m.), or visiting the lobby of 100 S. Charles Street, Baltimore for in-person assistance, to discuss what is needed for their individual case.
The department says it experiences the highest call volume on Mondays and Tuesdays and suggests trying Wednesday through Friday.