A settlement has been reached in the class action lawsuit, Duran v. New Mexico Department of Workforce Solutions (DWS), addressing claims related to overpaid pandemic unemployment benefits. Filed in the First Judicial District Court, the lawsuit sought relief for New Mexicans charged with overpayments due to administrative errors during the COVID-19 pandemic. The plaintiffs were represented by the New Mexico Center on Law and Poverty and Ives & Flores.

On January 9, 2025, Judge Sanchez-Gagne approved the settlement. A formal written order is forthcoming. DWS collaborated with plaintiffs’ attorneys to resolve this issue, temporarily halting efforts to collect overpayments from class members and beginning to process blanket waivers and refunds.

"The Department of Workforce Solutions faced unprecedented challenges during the pandemic," stated DWS Cabinet Secretary Sarita Nair. "This lawsuit gave us the opportunity to look back at that period and find some tools to ease the burden of overpayments."

The settlement will forgive 100% of CARES Act overpayments for those who qualify, sparing tens of thousands of New Mexicans from collection actions such as liens or tax refund interceptions.

"This settlement is a major step toward addressing the challenges faced by workers during the pandemic," said Stephanie Welch, Workers’ Rights Director at the New Mexico Center on Law and Poverty.

Plaintiff Yohanna Gerges expressed relief that a fair solution was reached after struggling with repayments despite not causing any mistakes.

Attorney Adam Flores remarked on working with DWS: "This agreement will provide critical financial relief to workers who have been struggling for years."

Due to a large number of affected individuals, processing all waivers and refunds may take several months. Workers are encouraged to update their contact information with DWS for timely notifications regarding their cases.

The lawsuit filed in 2023 aimed at ensuring forgiveness of overpayments made during the pandemic and refunds for those who repaid benefits. State agencies nationwide faced challenges scaling up unemployment programs quickly, leading to errors in benefit determinations by DWS.

For more information about applying for an individualized waiver or details about the settlement, visit https://www.dws.state.nm.us/Unemployment/Overpayment-on-CARES-Act-Programs or contact Paloma Mexika at (505) 305-2559 or paloma@nmpovertylaw.org.