(a)Any person who fails, without good cause, to make reasonable efforts to secure suitable work when directed to do so by the employment office or the Commissioner and has received any amount as benefits under this chapter with respect to weeks for which the person is determined to be ineligible because of the failure, and any person who by nondisclosure or misrepresentation by the person, or by another, of a material fact (irrespective of whether the nondisclosure or misrepresentation was known or fraudulent) has received any amount as benefits under this chapter while any conditions for the receipt of benefits imposed by this chapter were not fulfilled in the person’s case or while the person was disqualified from receiving benefits, shall be liable for the amount. Notice of determinati
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(a) Any person who fails, without good cause, to make reasonable efforts to secure suitable work when directed to do so by the employment office or the Commissioner and has received any amount as benefits under this chapter with respect to weeks for which the person is determined to be ineligible because of the failure, and any person who by nondisclosure or misrepresentation by the person, or by another, of a material fact (irrespective of whether the nondisclosure or misrepresentation was known or fraudulent) has received any amount as benefits under this chapter while any conditions for the receipt of benefits imposed by this chapter were not fulfilled in the person’s case or while the person was disqualified from receiving benefits, shall be liable for the amount. Notice of determination in such cases shall specify that the person is liable to repay to the Fund the amount of overpaid benefits, the basis of the overpayment, and the week or weeks for which the benefits were paid. The determination shall be made within three years after the date of the overpayment.
(b) Any person who receives remuneration described in subdivision 1344(a)(5) of this subchapter that is allocable in whole or in part to prior weeks during which the person received any amounts as benefits under this chapter shall be liable for all such amounts of benefits or those portions of the amounts equal to the portions of the remuneration properly allocable to the weeks in question. Notice of determination in such cases shall specify that the person is liable to repay to the Fund the amount of overpaid benefits, the basis of the overpayment, and the week or weeks for which the benefits were paid. The determination shall be made within three years after the date of the overpayment or within one year after the date of receipt of the remuneration, whichever period is longer.
(c) The person liable under this section shall repay the amount to the Commissioner for the Fund. In addition to the repayment, if the Commissioner finds that a person intentionally misrepresented or failed to disclose a material fact with respect to the person’s claim for benefits, the person shall pay an additional penalty of 15 percent of the amount of the overpaid benefits. Any additional penalty amount collected shall be deposited in the Fund. The amount may be collectible by civil action in the Superior Court, in the name of the Commissioner.
[Subsection (d) effective until the earlier of July 1, 2026 or occurrence of contingency; see also subsection (d) effective on the earlier of July 1, 2026 or occurrence of contingency, set out below.]
(d) In any case in which under this section a person is liable to repay any amount to the Commissioner for the Fund, the Commissioner may withhold, in whole or in part, any future benefits payable to the person, and credit the withheld benefits against the amount due from the person until it is repaid in full, less any penalties assessed under subsection (c) of this section.
[Subsection (d) effective on the earlier of July 1, 2026 or occurrence of contingency; see also subsection (d) effective until the earlier of July 1, 2026 or occurrence of contingency, set out above.]
(d) In any case in which under this section a person is liable to repay any amount to the Commissioner for the Fund, the Commissioner may withhold future benefits payable to the person, in amounts equal to not more than 50 percent of the person’s weekly benefit amount, and credit the withheld benefits against the amount due from the person until it is repaid in full, less any penalties assessed under subsection (c) of this section.
(e) In addition to any repayment required pursuant to subsections (a)–(d) of this section, when it is found by the Commissioner that a person intentionally misrepresented or failed to disclose a material fact with respect to the person’s claim for benefits and in the event the person is not prosecuted under section 1368 of this subchapter and the penalty provided in section 1373 of this subchapter is not imposed, the person shall be disqualified and shall not be entitled to receive benefits to which the person would otherwise be entitled after the determination for such number of weeks not exceeding 26 as the Commissioner shall deem just. The notice of determination shall also specify the period of disqualification imposed pursuant to this subsection.
(f)(1) Notwithstanding any provision of subsection (a), (b), or (d) of this section to the contrary, the Commissioner may waive up to the full amount of any overpayment that is not a result of the person’s intentional misrepresentation of or failure to disclose a material fact if:
(A) the overpayment occurs through no fault of the person; and
(B) recovery of the overpayment would be against equity and good conscience.
(2) A person may request a waiver of an overpayment at any time after receiving notice of a determination pursuant to subsection (a) or (b) of this section.
(3) Upon making a determination that an overpayment occurred pursuant to subsection (a) or (b) of this section, the Commissioner shall, to the extent possible and in consideration of the information available to the Department, determine whether waiver of the amount of overpaid benefits is appropriate.
(4) The Commissioner shall provide notice of the right to request a waiver of an overpayment with each determination that an overpayment has occurred. The notice shall include clear instructions regarding the circumstances under which a waiver may be granted and how a person may apply for a waiver.
(5) If the Commissioner denies an application for a waiver, the Commissioner shall provide written notice of:
(A) the denial with enough information to ensure that the person can understand the reason for the denial; and
(B) the person’s right to appeal the determination pursuant to subsection (h) of this section.
(6)(A) A person whose request to waive an overpayment pursuant to this subsection (f) has been denied pursuant to subdivision (5) of this subsection (f) and whose rights to appeal the denial pursuant to subsection (h) have been exhausted shall be permitted to submit an additional request to waive the overpayment if the person can demonstrate a material change in the person’s circumstances such that recovery of the overpayment would be against equity and good conscience.
(B) The Commissioner may dismiss a request to waive an overpayment that is submitted pursuant to this subdivision (6) if the Commissioner finds that there is no material change in the person’s circumstances such that recovery of the overpayment would be against equity and good conscience. The Commissioner’s determination pursuant to this subdivision (6) shall be final and shall not be subject to appeal.
(7) In the event that an overpayment is waived on appeal, the Commissioner shall, as soon as practicable, refund any amounts collected or withheld in relation to the overpayment pursuant to the provisions of this section.
(g) The provisions of subsection (f) of this section shall, to the extent permitted by federal law, apply to overpayments made in relation to any federal unemployment insurance benefits or similar federal benefits.
(h) Interested parties shall have the right to appeal from any determination under this section and the same procedure shall be followed as provided for in subsection 1348(a) and section 1349 of this title.
(i) The Commissioner shall not attempt to recover an overpayment or withhold any amounts of unemployment insurance benefits from a person:
(1) until after the Commissioner has made a final determination regarding whether an overpayment of benefits to the person occurred and the person’s right to appeal the determination has been exhausted; or
(2) if the person filed an application for a waiver, until after the Commissioner has made an initial determination regarding the application.
(j)(1) The Commissioner shall provide any person who received an overpayment of benefits and is not currently receiving benefits pursuant to this chapter with the option of entering into a plan to repay the amount of the overpayment. The plan shall provide for reasonable weekly, biweekly, or monthly payments in an amount that permits the person to continue to afford the person’s ordinary living expenses.
(2) The Commissioner shall permit a person to request a modification to a repayment plan created pursuant to this subsection if the person’s ability to afford ordinary living expenses changes. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 74, eff. May 26, 1965; 1969, No. 205 (Adj. Sess.); 1973, No. 155 (Adj. Sess.), § 2, eff. March 15, 1974; 1981, No. 86, § 14, eff. May 10, 1981; 1987, No. 100, § 3; 1993, No. 177 (Adj. Sess.), § 7; 1995, No. 96 (Adj. Sess.), §§ 1, 2; 1997, No. 101 (Adj. Sess.), § 4; 2011, No. 162 (Adj. Sess.), § E.401.2; 2013, No. 179 (Adj. Sess.), § E.400.1; 2017, No. 74, § 53; 2023, No. 85 (Adj. Sess.), § 197, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 2, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 3, eff. July 1, 2026 or occurrence of contingency.)