§ 22-4-13-1 — Overpayments resulting from fraud, failure to report wages received, or other reason; collection; repayment waiver

(a) Whenever an individual receives benefits
or extended benefits to which the individual is not entitled under this
article or the unemployment insurance law of the United States, the
department shall establish that an overpayment has occurred by issuing
a determination of eligibility and shall establish the amount of the
overpayment. For an overpayment described in:
(1) subsections (c) and (d), the department has four (4) years from
the date of the department's discovery of the overpayment to send
notification to the individual of possible overpayment; and
(2) subsection (e), the department has four (4) years from the date
of the overpayment to send notification to the individual of
possible overpayment.
(b) An individual described in subsection (a) is liable to repay the
established amount of the overpayment.
(c) Any individual who knowingly:
(1) fails to disclose amounts earned during any week in the
individual's waiting period, benefit period, or extended benefit
period;
(2) fails, or causes another to fail, to disclose a material fact; or
(3) falsifies, or causes another to falsify, a material fact;
that would disqualify the individual for benefits, reduce the individual's
benefits, or render the individual ineligible for benefits or extended
benefits, and as a result thereof has received any amount as benefits to
which the individual is not entitled under this article, shall be liable to
repay such amount, with interest at the rate of one-half percent (0.5%)
per month, to the department for the unemployment insurance benefit
fund or to have such amount deducted from any benefits otherwise
payable to the individual under this article.
(d) Any individual who fails to report wages received during a week
in which benefits were paid or because of the subsequent receipt of
income deductible from benefits which is allocable to the week or
weeks for which benefits were paid and as a result is not entitled to
such benefits under this article shall be liable to repay such amount to
the department for the unemployment insurance benefit fund or to have
such amount deducted from any benefits otherwise payable to the
individual under this article.
(e) An individual who for any reason not described in subsection (c)
or (d) has received any amount as benefits to which the individual is
not entitled under this article is liable to repay that amount to the
department for the unemployment insurance benefit fund or to have
that amount deducted from any benefits otherwise payable to the
individual under this article.
(f) When benefits are paid to an individual who was eligible or
qualified to receive such payments, but when such payments are made
because of the failure of representatives or employees of the
department to transmit or communicate to such individual notice of
suitable work offered, through the department, to such individual by an
employing unit, then and in such cases, the individual shall not be
required to repay or refund amounts so received, but such payments
shall be deemed to be benefits improperly paid.
(g) Where it is finally determined by a deputy, an administrative law
judge, the review board, or a court of competent jurisdiction that an
individual has received benefits to which the individual is not entitled
under this article, the department shall relieve the affected employer's
experience account of any benefit charges directly resulting from such
overpayment, except as provided under IC 22-4-11-1.5. However, an
employer's experience account will not be relieved of the charges
resulting from an overpayment of benefits which has been created by
a retroactive payment by such employer directly or indirectly to the
claimant for a period during which the claimant claimed and was paid
benefits unless the employer reports such payment by the end of the
calendar quarter following the calendar quarter in which the payment
was made or unless and until the overpayment has been collected.
Those employers electing to make payments in lieu of contributions
shall not have their account relieved as the result of any overpayment
unless and until such overpayment has been repaid to the
unemployment insurance benefit fund.
(h) Where any individual is liable to repay any amount to the
department for the unemployment insurance benefit fund for the
restitution of benefits to which the individual is not entitled under this
article, the amount due may be collectible without interest, except as
otherwise provided in subsection (c), by civil action in the name of the
state of Indiana, on relation of the department, which remedy by civil
action shall be in addition to all other existing remedies and to the
methods for collection provided in this article. The department must
commence a civil action as described in this subsection not later than
ten (10) years following the date the determination of eligibility
becomes final, including the exhaustion of all appeals.
(i) Except as provided in subsection (l), liability for repayment of
benefits paid to an individual for any week may be waived upon the
request of the individual if:
(1) payment of the benefits was without fault of the individual,
regardless of intent; and
(2) repayment would be contrary to equity and good conscience.
(j) An individual's repayment of an overpayment is contrary to
equity and good conscience under subsection (i) when the individual's
combined household gross income is sixty-five percent (65%) or less
of the current Federal Poverty Guidelines for a household of the
individual's household size for the first two (2) of the last three (3)
completed calendar quarters before the date the waiver request is
reviewed.
(k) The following apply to subsection (j):
(1) The size of the household is calculated using the same time
period of the first two (2) of the last three (3) completed calendar
quarters.
(2) The individual's household consists of the individual as well
as the following persons, if they share the use of the individual's
dwelling:
(A) The individual's spouse or partner, a person the individual
has claimed or plans to claim as a dependent, and a person the
individual's spouse or partner has claimed or plans to claim as
a dependent.
(B) A military member away on active duty so long as the
military member:
(i) is the head or co-head of the household;
(ii) is the spouse of the individual; or
(iii) has left behind a spouse or dependent child in the
dwelling.
(C) A child who is:
(i) in joint custody agreements; and
(ii) in the dwelling at least fifty percent (50%) of the time.
(l) A request for waiver under subsection (i) will not be considered
in the following circumstances:
(1) An overpayment of benefits paid under any state or federal
unemployment compensation law, which were due to a final
determination or decision made under:
(A) section 1.1(a) of this chapter; or
(B) any federal unemployment compensation law which
subjects individuals to prosecution under 18 U.S.C. 1001.
(2) An overpayment of benefits or extended benefits paid to an
individual employed by an employer electing to make payments
in lieu of contributions, except that this subdivision does not
apply to programs for which the employer is not chargeable for
benefit payments.
(m) Beginning July 1, 2025, a request for waiver under subsection
(i) must be submitted:
(1) in a form and manner prescribed by the department; and
(2) within fifteen (15) days of the date the determination creating
the overpayment becomes final.
(n) If a request for waiver under subsection (i) is denied or partially
denied, the individual may submit a request for reconsideration if the
individual believes that there has been a significant change in
circumstances which would cause repayment to be contrary to equity
and good conscience. However, the following apply to this subsection:
(1) At least six (6) months must have elapsed between the final
determination on the waiver request and the request for
reconsideration.
(2) No individual may submit more than two (2) requests for
reconsideration for a particular overpayment.
(o) Unless explicitly required by other state or federal
unemployment compensation law, no amounts paid toward an
overpayment of benefits that is subsequently waived will be refunded.
Formerly: Acts 1947, c.208, s.1301; Acts 1953, c.177, s.13;
Acts 1957, c.129, s.1; Acts 1971, P.L.355, SEC.28; Acts 1973,
P.L.239, SEC.4. As amended by Acts 1979, P.L.229, SEC.2;
P.L.228-1983, SEC.3; P.L.18-1987, SEC.40; P.L.135-1990, SEC.2;
P.L.21-1995, SEC.77; P.L.290-2001, SEC.6; P.L.108-2006, SEC.23;
P.L.183-2015, SEC.3; P.L.122-2019, SEC.27; P.L.34-2021, SEC.1;
P.L.200-2025, SEC.8.