| Overpaid Unemployment Compensation Benefits: Get a Waiver |
by: New Orleans Legal Assistance
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| Q. |
I got a letter saying I have to pay back unemployment compensation benefits. What does it mean? |
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| A. | The state may think it paid you money by mistake. If that happens, it's called an "overpayment." The state sends you a letter asking you to repay the money. |
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| Q. |
I'm not sure what the letter looks like. |
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| A. |
At the top, it says "Determination of Overpayment." Next to that, it will say either "Fraud" or "Non-Fraud." |
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| Q. |
Why does the letter say "Fraud" or "Non-Fraud"? |
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| A. |
If the letter says "Fraud" the state is saying you lied or did something else dishonest to get the money. If it says "Non-Fraud" the state thinks it was an honest mistake. |
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| Q. | Why should I care if it says "Fraud"? |
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| A. | The state always wants the money back if you can pay it. But, if the letter says "Fraud" the state will try to punish you. It will try to keep you from getting unemployment benefits for a year. That's not good. |
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| Q. |
What can I do when I get an overpayment letter? |
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| A. |
You have the right to appeal the overpayment letter. Appeal right away to protect your rights! You only have a very short time to appeal. Read the part called "Appeal Rights" on the bottom of the letter. Weekends are counted in the appeal time. Also, talk with a lawyer if you can. |
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| Q. |
The letter says "Non-Fraud" and the amount is right. But, I can't afford to pay the money back. Should I still appeal? |
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| A. |
Yes. In an appeal, you can tell why you can't pay the money back. You can ask the state to stop trying to collect the money. This is called asking for a "waiver." |
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| Q. | What happens when I appeal? |
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| A. |
You will get a hearing with a person called an "administrative law judge." This person works for the state and is usually not a lawyer. |
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| Q. | What happens at the hearing? |
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| A. |
The judge uses a tape recorder. Usually, the only people at the hearing are you and the judge. But, if the state wants to prove "fraud" a state worker will also be there. This worker will try to prove you lied or did something else dishonest to get benefits.
At the hearing, you can explain why:
- The overpayment is wrong;
- The amount is wrong;
- You did not commit "fraud;" and/or
- You can't pay the money back
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| Q. |
How do I show I can't pay the money back? |
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| A. |
Prove your debts. Bring bills, IOUs, letters from people who have lent you money, court judgments ordering you to pay money, and any witnesses you may need.
Prove you don't have much or any income. Take check stubs, welfare or food stamp program letters that show you're getting help, letters from people who are giving you money to pay bills, and any witnesses you may need. |
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| Q. | Do I need a lawyer at the hearing? |
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| A. |
Maybe. You do need legal help if you:
- Are accused of "fraud;"
- Have problems talking or hearing; or
- Can't speak or understand English well.
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| Q. |
I did not appeal the overpayment notice. Can I still ask for a "waiver?" |
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| A. |
Yes! Go to a local unemployment or job service office. Tell them you want to apply for a waiver. It they won't help you, talk to a lawyer right away! |
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| Q. | What if the state denies my appeal of the overpayment, or denies me a waiver? What can I do? |
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| A. |
You have the right to appeal again. The time to appeal is very short. Appeal, then try to get a lawyer to help you. |
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| Q. | Why should I appeal? |
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| A. |
If the state wants you to pay back more money than you owe, or wants you to pay money when you can't afford it, you will be punished if you don't appeal. The state can take your tax refunds or take money from your paycheck if you don't appeal. The state can sue you for the money. If the state says you are guilty of "Fraud" then you will be punished if you don't appeal - you will not be able to get unemployment benefits for a long time. |
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