Assembly votes to suspend 'forfeit day' penalties for unemployment claims during COVID‑19

The New York State Assembly on the floor advanced and passed legislation to suspend the application of 'forfeit day' penalties under state labor law for the duration of the COVID‑19 state disaster emergency, allowing claimants previously assessed such penalties to receive unemployment insurance benefits during the crisis.

Sponsor Miss Rosenthal told colleagues the bill codifies the governor's temporary executive‑order relief and would help New Yorkers who have lost income, saying the waiver is intended to prevent hunger and homelessness while administrative processes remain strained. "A bad move in one's life should not sentence one to purgatory starvation," Rosenthal said in explanation of her vote.

Opponents, led by Mister Montesano, argued the statute targets willful false statements and that codifying the executive order could reward people who intentionally defrauded the system. "Why should we condone it?" Montesano asked, urging colleagues to hold to the statutory standard that forfeiture days attach to intentional misrepresentation. Other Republicans framed the conference position as a party 'no' vote in opposition to extending benefits to claimants who previously committed willful fraud.

Supporters, including members who recounted overwhelmed district offices and confused claimants, said many applicants make mistakes or are unable to complete appeals because Department of Labor processes have been delayed. Miss Walsh and others described examples of confusing forms and limited appeals access, and said enforcement and repayment mechanisms for improper payments remain in place.

After extended debate and questions from colleagues about whether previously assessed penalties would still be repaid, the clerk recorded a vote: Ayes 96, Noes 47, and the bill passed. The action immediately takes effect under the bill's final section.

The Assembly set the measure to be recorded on the journal; members who wanted to be recorded as an exception to their conference position were instructed to contact leadership.

The next procedural step is enrollment and delivery to the governor for signature or veto. If enacted, the law would only suspend the application of forfeiture day penalties during the declared disaster emergency and would not eliminate the obligation to repay improperly received benefits or administrative penalties in all circumstances.