July 6, 2026 — Nearly 2,000 members and former members who answered New York State Department of Health COVID-19 Hotline calls and helped the Department of Labor manage increased unemployment insurance claims will receive compensation after PEF resolved its lawsuit challenging the state’s handling of COVID-19 overtime pay.
In December 2023, the state made about $3 million in principal payments. It will now make roughly $845,000 in interest payments. The average payment is about $490, with the highest totaling $10,197.27 and at least 60 members receiving thousands of dollars.
The lawsuit argued that the state unlawfully calculated overtime at one-and-one-half times either the average of employees’ regular hourly rate and a lower-graded rate, or only the lower-graded rate, instead of one-and-one-half times their regular rate of pay.
“When people go to work, they expect, at a minimum, to be paid what they are owed,” said PEF Assistant General Counsel David Friedman. “Union involvement allowed us to seek redress for all underpaid individuals as a group of represented employees. Because of PEF and President Spence’s involvement, we were able to move quickly in court without naming every impacted individual.”
The win was a collaborative effort.
PEF Field Services staff provided the Legal Department with documents, emails, and contact information for members willing to speak out, while Contract Administration monitored the issue and filed grievances to preserve members’ contractual rights.
In July 2020, President Spence and three PEF members filed the lawsuit against then Governor Andrew Cuomo, several Executive Branch offices and agencies, and their respective heads.
The settlement resolves the contract grievances and creates a process for PEF to address any remaining disputes over payment amounts. PEF has until Dec. 30, 2026, to present disputes. If you believe you were paid incorrectly, contact PEF and provide supporting documentation to COVIDOT@pef.org as soon as possible.
PEF has notified impacted individuals and provided details, including the amount each person should receive. Some may also hear directly from their employer, and those receiving $2,000 or more will need to complete an IRS W-9 form before payment can be issued.
“This case remains a multi-department effort at PEF,” Friedman said. “Field Services continues to gather information and answer questions from impacted individuals. We recently sent letters to everyone receiving an interest payment, with general information and the specific amount owed. After Legal drafted the letters, we worked with Field Services, Contract Administration, MIS, and Statewide Facilities to finalize and mail them. We truly appreciate their help.”