Understanding Overpayments in Oregon's Unemployment System
When you hear "overpayment" from the Oregon Employment Department, it means they think they paid you more unemployment money than you should have received.
Why do overpayments happen?
There are three main reasons why you might get an overpayment:
- The Employment Department made a mistake. Maybe they got your monthly benefit amount wrong or said you could get benefits when you really couldn’t.
- They think you made an honest mistake. Maybe you didn’t understand a question or forgot to include some information because you didn’t know it was necessary.
- They believe you weren’t truthful. This is when they think you gave false information to get unemployment benefits.
What if you don't pay the money back?
What happens next depends on why the overpayment occurred.
- If they think you did something wrong, the Employment Department might take some of your paycheck or tax refund to get the money back. They could even take you to court.
- If it wasn't your fault, they can’t touch your taxes or pay, and they can’t sue you. The most they can do is reduce your unemployment checks if you claim unemployment again within the next five years.
No matter why it happened, you’ve got options. There’s more information here on what to do next.
Frequently Asked Questions About Overpayments
Going to jail for an overpayment is rare. It usually only happens in serious cases where someone is really dishonest.
If the overpayment was your fault, like you made a mistake on your application or weren't honest, then yes, the Employment Department might take your tax return. But if it wasn't your fault, your tax return should be safe.
If the overpayment was your fault, like you made a mistake on your application or weren't honest, then yes, the Employment Department might take part of your paycheck. But if it wasn't your fault, your pay is safe.
You have a few choices:
- Appeal the decision
- Ask for an overpayment waiver (which is like asking for forgiveness)
- Pay back the money
For more details on how to handle an overpayment, visit this page.