Options for Dealing with an Unemployment Overpayment
If the Oregon Employment Department told you they overpaid you unemployment benefits, you have options for dealing with this situation. But your options depend on why the Employment Department thinks they overpaid you
To understand the reason for the overpayment, read the letters you got from the Employment Department. Look for the one that provides information about the overpayment.
Look for one of these key phrases in your letter. They'll tell you what kind of overpayment problem you have.
- "Cash repayment is not required" means the overpayment wasn't your fault. It was likely caused by a mistake on the Employment Department's part. This also means you won't have to pay them out of your pocket to cover the overpayment.
- "Misrepresented a material fact" means the Employment Department thinks the overpayment was caused by your honest mistake. For example, maybe you left out some details on your application because you didn't know that information was necessary.
- "Willfully misrepresented a material fact" and "penalty weeks" mean the Employment Department thinks the overpayment was caused because you lied or committed fraud. Penalty weeks mean you can't get unemployment for the number of weeks listed.
You have four options:
- Ask for overpayment forgiveness. If you can't afford to repay the overpayment, ask for forgiveness (a "waiver"). If the overpayment is forgiven, you don't have to repay the money. Learn how to request a waiver on the Oregon Employment Department site.
- File an appeal. If you disagree with the overpayment decision, you can file an appeal. An appeal means asking a judge to review the Employment Department's decision because you think they got it wrong. If you want to file an appeal, you need to act quickly! Visit this page for more information on how to appeal an overpayment.
- Ask for overpayment forgiveness and appeal at the same time. You can appeal and apply for forgiveness at the same time. If one doesn't go your way, you have a backup plan. But it's important to remember these are two different requests. You'll need to fill out two sets of paperwork and send them to separate places. You should also start your appeal first since there's a deadline.
- Do nothing. If the overpayment wasn't your fault and you don't qualify for a waiver, it might be okay to ignore it. In most cases, the Employment Department can't force you to repay the money out of your pocket. (The exception is if you received more money than the highest amount anyone can receive per week under state law. This usually happens only if you are accidentally paid more than once for the same week.) But remember, if you do nothing, you'll get less money if you claim unemployment again within the next five years.
You have four options for dealing with the overpayment:
- Ask for overpayment forgiveness. If you can't afford to repay the overpayment, ask for forgiveness (a "waiver"). If the overpayment is forgiven, you don't have to repay the money. Learn how to request a waiver on the Oregon Employment Department site.
- File an appeal. If you disagree with the overpayment decision, you can file an appeal. An appeal means asking a judge to review the Employment Department's decision because you think they got it wrong. If you want to file an appeal, you need to act quickly! Visit this page for more information on how to appeal an overpayment.
- Ask for overpayment forgiveness and appeal at the same time. You can appeal and apply for forgiveness at the same time. If one doesn't go your way, you have a backup plan. But it's important to remember these are two separate requests. You'll need to fill out two sets of paperwork and send them to separate places. You should also start your appeal first since there's a deadline.
- Repay the money. If you agree you were overpaid and can afford to repay the money, it's a good idea to start paying it back. Your overpayment letter will tell you how to repay the money. If repaying it all at once is too much, ask if you can set up a payment plan.
It's not a good idea to ignore an overpayment. The Employment Department can force you to repay the debt if you don't deal with it. They can take your tax return or paychecks, sue you in court, or reduce your employment benefits in the future.
You have two options:
- File an appeal. You can appeal if you don't think you committed fraud or disagree with any other part of the overpayment decision. An appeal means asking a judge to review the decision because you feel it's wrong. If you want to file an appeal, you need to act quickly! Visit this page for more information on how to appeal an overpayment.
- Repay the money. If you agree that you did something dishonest to get unemployment, it's a good idea to deal with the overpayment and pay the money back. Your overpayment letter will tell you how to do this. If repaying it all at once is too much, ask if you can set up a payment plan.
It's not a good idea to ignore the overpayment. The Employment Department can force you to repay the debt if you don't deal with it. They can take your tax return or paychecks, sue you in court, or reduce your employment benefits in the future.