What Is An Overpayment
An overpayment of unemployment insurance benefits occurs when the Employment Development Department believes that a claimantthe person claiming UI benefitshas received UI benefits when the claimant was not legally eligible to receive them. Overpayments can happen for a number of reasons. Some common reasons include:
- an employer reports earnings or employment information to the EDD that differs from the information given by the claimant
- a claimant untruthfully or inaccurately filled out a certification for benefits
- a claimant is originally granted UI benefits but then loses a later appeal or
- EDD mistakenly sends a claimant benefits.
If an overpayment was caused by the loss of an appeal or a simple mistake on the part of the EDD or an employer, it does not necessarily create a large problem for the claimant. If, however, the EDD believes the claimant was lying to the EDD, the overpayment can cause significant financial problems for the claimant.
Overpayments From Another State
If you have an overpayment of unemployment benefits in another state, that state may request that we send your Texas benefits to them until your overpayment is paid. If the overpayment from another state is collectable by Texas, we will notify you. Continue to submit biweekly payment requests so we can apply each eligible payment toward the overpayment. After you repay the overpayment, we will release any remaining payable benefits to you, as long as you are still requesting payment.
Complete, print and sign the online request for reconsideration of an EI decision form.
Submit it to Service Canada in person or by mail within 30 days after the date the decision was communicated to you. There is no fee to request a reconsideration.
If you submit your request after 30 days, you must provide a reason for the delay. Service Canada can still accept your request if we determine that there is a reasonable explanation.
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This article is helpful, but it’s not specific to the current situation. We know many people are getting large unemployment overpayments right now. There are steps you can take to ask the state to waive or remove an overpayment from this time period. The Maine Department of Labor provides an online form for requesting a waiver.
Maine Equal Justice has also recently published a new Guide to Unemployment Insurance in Maine. This guide covers the basics about the program, as well as answering some of the most frequently asked questions about Unemployment.
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What Happens After I Appeal The Notice Of Overpayment
Once you send EDD the appeal form, EDD will process your appeal, and send your case to the California Unemployment Insurance Appeal Board , an independent agency. Your case will be assigned to an Administrative Law Judge who will reassess your case independently, and determine whether EDD made the right decision in the Notice of Overpayment.
You should look out for a large packet in the mail from the California Unemployment Insurance Appeals Board. Inside the packet will be a Notice of Hearing, which is usually printed on yellow paper. The Notice of Hearing will tell you when and where the hearing for your case will be heard. If you cannot make the hearing, you should immediately call the number of the Office of Appeals listed on the Notice of Hearing, to see if the hearing can be rescheduled.
At the hearing, which will either take place in person or over the phone, you will have the chance to tell your side of the story and explain why you believe you were eligible for benefits and should not be assessed an overpayment.
Setup A Repayment Plan
The UI Recovery Unit can establish a repayment plan in the event of an overpayment occurring. If the UI Recovery Unit cannot establish the repayment plan with you, the agency will be authorized to collect any unemployment compensation debt from any federal income tax refund or through the garnishment process.
A fraud decision will not allow payment of unemployment insurance benefits until the disqualification period is over and the overpayment and penalties are paid in full.
If you have received a Notice of Overpayment, establish a repayment plan by calling 844-817-0619.
Payments may be made by check or money order and mailed to UI Recovery Unit.
UI Recovery Unit
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What Is A Notice Of Overpayment And Why Did I Get It
A Notice of Overpayment is a document that EDD sends to claimants when EDD believes the claimant received benefits incorrectly. The notice will tell you how much EDD thinks that you need to pay back.
If you do not appeal the Notice of Overpayment and get the decision reversed, you will have to pay this money to the EDD. The EDD may attempt to collect the money you owe by taking money out of your paycheck or tax refund. If the EDD believes you made a willful false statement, you may be penalized by not being able to receive UI benefits in the future when you are otherwise eligible, for example the next time you become unemployed.
Even if you agree with EDD that you received benefits incorrectly, you may still want to appeal if EDD is penalizing you for making a false statement, and you did not intentionally give EDD information that caused the overpayment. It is possible to get the false statement penalties reversed, even if the overpayment itself is correct and you need to pay back EDD for the overpayment amount.
Treasury Offset Program Collection
If you have an overpayment of unemployment benefits, and have not repaid that debt, your federal Internal Revenue Service tax refunds may be subject to reduction by the overpaid amount.
The Treasury Offset Program is a federal program that collects past due debts owed to federal and state agencies by capturing IRS tax refunds to offset these debts. TWC issues letters to former unemployment benefit claimants who have debts that are subject to collection through TOP.
Federal law requires TWC to collect specific types of unemployment benefit debt from both claimants and employers. Claimants with an overpayment caused by incorrectly reported earnings, fraud and fraud penalties are subject to TOP.
Collection through TOP is only initiated after an overpayment determination is final and other collection notices have failed. If you have an overpayment that is subject to TOP, TWC will mail a letter showing the amount you owe, along with instructions on how to avoid referral to collection. You must complete one of the following actions within 60 days of the mail date of the letter to avoid collection through TOP:
- Submit full payment of the amount indicated
- Enter into a six-month repayment plan and submit the first monthly payment
- Submit documentation showing that you have paid the debt in full
- Submit documentation explaining why the amount is not subject to TOP referral, such as a bankruptcy ruling
Send payment or documentation to:
TOP Overpayment Collections
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What Do I Do If I Disagree With The Overpayment
If you disagree with a determination, you should appeal. You cannot appeal by email or phone. If you appeal after the deadline, include a reason why the appeal is late. See How to Appeal.
- If you appeal, you are not required to mail payments during the appeal process. Once the Appeals department processes your appeal, an indicator is added to the system and the overpayment statements will be placed on hold until a decision is made on the claim. Collections staff are not able to process your appeal or check the status of an appeal.
- If the determination is affirmed, you will need to send payments. Contact the Collections unit to set up a repayment plan.
- If the determination is reversed, it takes the Unemployment Benefits department a week or two to make adjustments to the claim.
What Do I Do If I Receive An Overpayment Notice
- First, you want to figure out what caused the overpayment. Check the notices and messages on your online portal carefully or contact ESDs claim center at 800-318-6022, 8 a.m. to 4 p.m. Monday through Friday.
- Second, if you disagree with the determination that caused the overpayment, you should appeal the decision causing the overpayment within 30 days of the date of the decision. If you are unable to find the determination causing the overpayment, appeal a recent determination instead. Once you file an appeal, you can contact the ESD Benefit Payments Control office at 866-697-4831 and request a hold on all collection activity of the overpayment while the appeal is pending.
- Third, you will receive a hearing date where you will have the chance to argue that the decision leading to the overpayment was incorrect and should be reversed. You will also have the chance to argue that if the decision stands, the overpayment was not your fault.
- Fourth, if you lose your hearing and the decision leading to the overpayment is affirmed on appeal, you can often request a waiver of the overpayment. You will need to establish to ESD that the overpayment was not your fault and that it would cause financial hardship if it is not waived. If ESD refuses to waive the overpayment, you can also appeal this decision.
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The State May Pursue A Collection Process If The Money Is Not Repaid
There are different ways that you might be able to repay any over payment. If you are able to pay the full amount you may be asked to send a check for the sum of the overpayment. But if you cant make the whole payment all at once, you may be able to negotiate a payment plan.
If you do not make adequate arrangements for repayment, the state may seize the money you owe from lottery winnings or tax refunds. In some cases, the state may deduct the money from current unemployment compnesation if you are still receiving benefits or garnish your paycheck if you have returned to work.
In the case of fraud, you may be charged a penalty and possibly charged with criminal fraud. Additionally, you may be banned from collecting future unemployment benefits for a certain amount of time depending on the type of fraud.
How Do I Apply For A Waiver
You apply for a waiver by sending a letter to:
Unemployment Insurance CommissionAugusta, ME 04333-0057
The Commission will not accept phone calls requesting a waiver.
Your letter to the Commission should include all the reasons why you are unable to repay the overpayment. It should also include your name and mailing address. List the date of each decision that you want waived and each overpayment amount you want waived. The Commission will then send you a form to fill out describing your financial situation within 14 days. Your request for a waiver will be denied if you do not return the form. You can also request a hearing, although the Commission is not required to give you one.
Here are the things the Commission looks at before making a decision:
- Your health and ability to work
- Whether you support family members or others
- Whether you have a job
- Your family income and expenses
- Whether you own property, other than a home, car, and basic household goods
- Debts you and your family owe
- Medical or other expenses you or family members have
- Whether you got similar benefits from another source
- Whether the Commission gave you clear notice that you may have to repay benefits
- Would making you repay defeat the purpose of the unemployment benefits program?
- Is waiver of repayment the fair and right thing to do?
You can also ask for a hearing on your waiver request. But the Commission may not give you a hearing it may just decide your case based on the written information it has.
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Can I Appeal The Overpayment Determination
If you disagree with the overpayment determination or waiver denial, you have the right to request a hearing. The hearing will be conducted by an impartial judge who is employed by the Unemployment Insurance Appeal Board. If you are present at the hearing and lose all or part of the case, you may file an appeal to the Appeal Board. If the Appeal Board does not rule in your favor, you have 30 days from the date of the Appeal Board’s decision to apply to the Appeal Board for a reconsideration of the decision, or appeal to the Appellate Division of the State Supreme Court, Third Department.
We will not try to collect payments from you while your appeal is in progress. Any payment you made will be refunded if you are found eligible for benefits.
For more information on how to request a hearing, visit .
What If I Am Not Satisfied With The Administrative Law Judge Decision
The Administrative Law Judges decision will become final unless you appeal the decision to the Review Board within fifteen calendar days after the date the decision was sent. You must do all of the following:
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If Oah Selects You For A Bap
OAH will send you a Notice of Brief Adjudicative Proceeding. You will have the opportunity to submit more information. The judge will then decide your appeal without a hearing and issue a written decision. The decision will be uploaded to the OAH Participant Portal and a copy will be mailed to you.
Review the BAP process on the OAH website.
How Do I Write An Appeal Letter For Unemployment Overpayment
An appeal letter for unemployment overpayment can be made by following the explanation below as a basis for guidance:
1. Start by greeting the recipient, then continue by stating the full name and address along with the number and date of issue of the overpayment notification letter.
2. Carefully understand the explanation of the situation in the notification letter, then make a convincing explanation that the decision to return unemployment compensation is wrong.
3. Include contact information with the aim of smooth communication with the employment office.
4. Sign it and include the date the letter was written.
5. The letter document is sent in the same way when the notification letter was received, it can be in the form of an email or an official letter via post.
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Tips For Writing An Unemployment Overpayment Appeal Letter
It is a challenging task to write such a letter. Anyway, there are a few important tips you should follow here:
- First, you have to follow the format rightly.
- Besides that, you must also use good grammar.
- Then, you should also avoid ambiguous sentences.
- In addition, it is very important to keep it simple, concise, and clear.
- Moreover, make sure that you send it within the designated timeframe.
What You Need For Repay Unemployment Benefit Debt
To repay your overpayment electronically, you will need:
- The login information for your UI Online account
- Your claimant ID if paying through your banksBill Pay
To repay your overpayment by mail, you will need:
- A check or money order, made payable to the Department of Unemployment Assistance
- Your claimant ID
- The repayment voucher included with your Monthly Statement of Account
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What If I Get A Notice Of Overpayment
When you are getting benefits, you may receive a notice that the Maine Department of Labor is looking into your benefits. The notice may say that you were overpaid or that you will get lower benefits or no benefits. The Department of Labor can change you benefits based on new information about your work search or any other important information.
You have a right to a fact-finding interview if the Department of Labor thinks you were overpaid or if your benefits will change. If you disagree with the notice, ask for a fact-finding interview. At the interview, give the Deputy all the information that supports your claim. The Deputy will send you a written decision. If the decision says you were overpaid, or lowers or stops your benefits and you disagree, you should appeal right away. You only have 15 days from the day the decision was mailed to you.
NOTE: If the Notice accusses you of making “a false statement of representations” or “knowingly failed to disclose a material fact” your situation is more serious. Read “What if I accept beneifts I know I should not get?” at page 4.
Can My Overpayment Be Waived
In certain circumstances, a claimant may be eligible to have his/her overpayment waived. In accordance with Ind. Code §22-4-13-1, an overpayment may be waived upon the request of the individual only if the following criteria are met:
Claimants must submit an Overpayment Waiver Request application for consideration. The Department will evaluate the request and issue a determination to the claimant. The application can be found at under Forms and Downloads. Certain exclusions apply. Please see for more information about the waiver process.
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