Unemployment benefit overpayments must be paid back

NORTH CAROLINA (WWAY) — The North Carolina Department of Commerce, Division of Employment Security released an update on unemployment assistance.

The N.C. Division of Employment Security Assistant Secretary, Pryor Gibson, said when a person was paid unemployment benefits they were not entitled to receive, by law, they
must repay those benefits to the N.C. Division of Employment Security (DES).

An overpayment occurs if DES receives additional information that changes the initial approval of the claimant’s eligibility, or if it is found that a claimant did not fulfill their requirements for receiving benefits. Claimants are notified as soon as possible after an overpayment is established through a written notice by mail or email, as well as through their secure DES online account.

Here are some examples of causes of overpayments:

• Claimant returned to work but continued to collect unemployment benefits without
  reporting their work and earnings.
• Claimant failed to submit required documentation to receive benefits, such as proof of
  prior employment for Pandemic Unemployment Assistance.
• Claimant failed to meet work search requirements.
• Claimant withheld or gave false information when filing a claim or a weekly certification.
• The decision to pay benefits was reversed on appeal.
• The claimant’s benefit amount changed due to a change in base period wages or
  unemployment program changes.

By law, overpayments must be repaid to DES. If you cannot repay the balance in full, you may enter into a payment agreement with DES. If you have an outstanding overpayment balance, you will receive a monthly statement that shows your current overpayment balance and your minimum monthly payment. If you are receiving benefits and you have an overpayment balance, your benefits will be reduced, with a portion directed to the claimant’s overpayment balance. DES may also collect overpaid benefits by garnishing tax refunds or lottery winnings, or by pursuing court action.

To learn more visit the N.C. Division of Employment Security website.