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What Happens If I Am Overpaid?

The Division of Employment Security discovers improper payments in a number of ways, including notification from employers when new employees are hired and random audits. If we find you were paid benefits for any week you were employed and did not report wages or reported wages incorrectly, we must investigate. You will be asked to provide information so we can determine what action needs to be taken. We want to make certain that only eligible claimants receive benefits and that each claimant is paid the proper amount.

If you receive benefits to which you are not entitled, you must repay the benefits, even if someone else made the mistake that caused the incorrect payment. When an overpayment is found, we issue a notice telling you why you are overpaid, and the amount. If you believe the notice is incorrect, you have the right to appeal.

You can repay an overpayment in a lump sum, or you can request a payment plan. If you are claiming benefits, they will be applied to the overpayment.

It is to your advantage to repay overpayments as soon as possible. Otherwise, we must recover the amount due from your benefits the next time you file a claim. This means you will be without benefits when you need them.

If you deliberately make a false statement or withhold information to receive benefits, your benefit rights can be canceled, and you can be arrested, fined and imprisoned.

An additional penalty of 25% or 100% of the overpaid amount can be added to the amount to be repaid.