Tag: Unemployment Overpayment

Learn about unemployment overpayment, including causes, repayment options, appeal processes, and how to avoid penalties. Get expert tips to resolve overpayment issues.

  • A Minnesota Unemployment Overpayment May Get Worse

    A Minnesota Unemployment Overpayment May Get Worse

    An unemployment overpayment in Minnesota means the unemployment office is wanting money back, whether incorrectly or otherwise.

    Applicants with appeal rights have different issues to consider versus people considering repayment strategies.

    In either case, consider meeting with an attorney before freely offering up information or responding to the Minnesota unemployment office.

    Applicants who are successful with an appeal may reverse reverse an overpayment.

    However, success is very dependent on how an individual responds to a request for information expressed by DEED.

    You already know the seriousness of an overpayment because of the dollar value. Yes, an overpayment is serious, but reversable.

    Since COVID, this law office is seeing overpayments as high as $90,000 after penalties, fines, and accusations of misrepresentation.

    As you can see under rule 268.105, an Applicant can appeal an overpayment. 

    Generally, an appeal related to an unemployment claim follows the same procedures and steps as that required during other levels of the unemployment appeal process.

    Minnesota and the unemployment office can audit benefit accounts years from ever date of payment.

    In other words, the Minnesota unemployment office has rights that support their ability to audit your account.

    Sometimes, an overpayment for benefits can be attached to misrepresentation. In other words, instead of one active case, a person may have two or more case types.

    One of many reasons misrepresentation or fraud impacts an overpayment is in repayment strategies and laws.

    These types of benefit cases really cause a lot of stress and their impact can be far reaching. And, matters of this kind can date back months, years, and even decades.

    Whether pre-covid or post covid, consider seeking help, such that you do not inadvertently make the situation more damaging.

  • Old Unemployment Claims From Years Ago

    Old Unemployment Claims From Years Ago

    Old unemployment claims in Minnesota still reveal their ugly head many years after the fact as an overpayment.  Here are three ways people are reminded of an old claim:

    • Wage Garnishment
    • Nasty Letters from DEED
    • Tax Return Recoupments

    Another way old unemployment claims get brought up is that moment a couple or family begins the process of buying a home or seeking credit.  

    I believe the best approach of tackling an overpayment is by knowing one’s rights.

    Types of Old Unemployment Claims

    In general, there are two types of overpayments specific to unemployment benefits in Minnesota:

    1. An Overpayment because of Misrepresentation, and
    2. Everything Else

    The laws pertaining to an overpayment in Minnesota are different based on its classification or type.

    Unfortunately, the rules have changed four times in the last few years, which is past experiences may not always be right. As a result, I like the idea of reading and reviewing MN Statute 268.18.

    Are Old Overpayments Still Valid?

    The unemployment office gets claims wrong. Because everybody has a different story, each issue regarding validity is different too.

    I do not always trust the advice people are getting from outside resources. For this reason, I like the idea of doing an audit of available resources and applying the information to Unemployment’s statute of limitations.

    After all, asking for help from a 900 pound gorilla can sometimes be disastrous.

  • Witch Hunts for Unemployment Overpayments

    Witch Hunts for Unemployment Overpayments

    Unemployment overpayments in Minnesota are no joke.  In the year 2016, Minnesota had a huge problem with overpayments to the tune of $79 million dollars.

    Hard to believe, right?  For those who doubt, check out this link.

    For those confronted by an overpayment appeal, time is of the essence.  If you are in need of feedback, please consider this brief outline of the unemployment appeal process.

  • 10 Fast Overpayment Options for your Unemployment Claim

    10 Fast Overpayment Options for your Unemployment Claim

    Yes, people have unemployment overpayment options.  I know this is a very stressful issue.

    Because  many people with claims from  Minnesotan are given horrible feedback,  lets quickly identify potential responses:

    Easy Overpayment Options

    • Appeal the overpayment and fight like mad
    • Show the unemployment office why their overpayment claim is a mistake
    • Seek a reduced repayment plan
    • Use current benefits to repay past due amounts
    • Acquire a loan from a bank and apply it to an overpayment

    Hard Overpayment Options

    • Show the unemployment office why their overpayment claim is a mistake
    • Wait for a garnishment (taxes or wages) and hope that helps
    • Acquire a loan from a bank and apply it to an overpayment
    • Consider bankruptcy
    • Do nothing and live in fear

    Other Overpayment Options

    Yes, there are a couple of stronger responses that I classify as significant unemployment overpayment options, but these are going to apply on a case-by-case basis.

  • Look Into These Eyes Before You Repay Unemployment

    Look Into These Eyes Before You Repay Unemployment

    Nobody wants to repay unemployment.  When Minnesota’s unemployment office claims money needs to be repaid or returned, they call it an “unemployment overpayment”.

    I believe every applicant trying to collect unemployment in Minnesota should appeal when accused of an overpayment versus concede.

    Here is an introduction to my approach to an unemployment repayment:

    Identify the deadline to repay unemployment

    In my experience, a lot of people do not know they can appeal an overpayment.  Everybody I meet with is encouraged to find a deadline.  The deadline I ask people to find is not the deadline to return or repay benefits.

    Instead, I encourage applicants to find the date they can appeal their case.  Generally, the deadline to appeal an overpayment can be found in two locations:

    • Online and within an Applicant’s benefit account, or
    • Somewhere within the letter describing the problem.

    Related documents to repay unemployment

    Generally, letters looking like a pay stub or invoice are not helpful.  These types of letters are designed to encourage applicants to repay unemployment.

    In my experience, they do not support or help applicants appeal the unemployment overpayment.  In fact, a lot of people incorrectly interpret their invoice or repayment voucher as a forgone conclusion they no longer have appeal rights.

    For this reason, finding the deadline specific to an unemployment overpayment is a significant step.

    Good reasons to appeal unemployment

    Yes, there are many reasons to appeal an unemployment overpayment.  They include but are not limited to the following:

    • Identifying a legal reason to qualify for unemployment,
    • Notice of an appeal deadline was never received,
    • Due process failed,
    • There was an error of law,
    • The evidence does not support an overpayment, and or
    • A decision was arbitrarily decided

    Stop or cancel an overpayment

    Yes, Minnesota has rules that support cancelling an unemployment overpayment.

    Because the goal should always be reducing an overpayment to zero dollars ($0), I believe the process to repay unemployment should always begin with the appeal process.

    If a person does not have appeal rights, then Minnesota statute 268.18 can have a positive impact on a family’s well-being.

    Repay unemployment or negotiate?

    Unfortunately, the opportunity to negotiate a repayment plan is a lot harder than it should be.  No, applicants owing money to the unemployment office in Minnesota are not “negotiating a settlement” and the process is not the same as the IRS debt settlement commercials you hear on the radio.

    Instead, the process to repay unemployment benefits should be viewed as a way to reduce monthly payments while using cancellation rules to one’s advantage.

    Repay unemployment help

    If you believe the process described above or you need help accessing your situation, please contact me for more information.

  • Unemployment Revenue Recapture for Minnesota – Say What?

    Unemployment Revenue Recapture for Minnesota – Say What?

    Unemployment revenue recapture for Minnesota is a somewhat of a new process.  Generally, you will receive notice by mail that the unemployment office in Minnesota is using help from the Department of Revenue to collect an unemployment overpayment.

    In other words, the unemployment office is trying to use your tax return to collect money from you that they believe you owe as a result of an unemployment overpayment.

    Can you appeal an Unemployment Revenue Recapture for Minnesota?

    Yes, you can appeal an unemployment revenue recapture for Minnesota by following the appeal rules and procedures that are usually outlined in the notice you received by mail.

    Should you file an appeal for an unemployment recapture or talk to a lawyer first?

    Obviously this law office is biased, but yes you should talk with a lawyer regarding an unemployment revenue recapture issue.

    An unemployment revenue recapture hearing should be reviewed with extreme caution.  The procedure for an appeal of this nature is similar to other unemployment appeal hearings you may or may not have partaken in.  That said, an unemployment law judge may utilize an unemployment revenue recapture hearing to justify an audit of your benefits or attach fraud to your claim.  Thus, an unemployment revenue recapture hearing should never be treated lightly.

    What else should you know about an unemployment revenue recapture for Minnesota?

    The intent of the revenue recapture hearing is to see whether your case should not be forwarded onto the Minnesota Department of Revenue.  If the applicant believes that their claim for unemployment benefits should not be forwarded onto the Minnesota Department of Revenue, consider appealing the notice of revenue recapture.

    What if you don’t appeal an unemployment revenue recapture for Minnesota?

    If you do not appeal, then the unemployment office in Minnesota will move forward with the process to intercept your tax return and use it to to repay an unemployment overpayment.

    What if you are not expecting a tax return?

    Even if you are not expecting a tax return, you should still consider an appeal.  The Minnesota Department of Revenue can use this process to attach a lien to your home, your car, or a bank account.

    What should you do first?

    Look, this law office knows this can be a scary or an overwhelming process.  Do not panic because you absolutely have rights.  Although every situation is different, consider contacting a lawyer for help.  

    As an alternative, consider visiting a law library and conduct further research on the process specific to an unemployment revenue recapture for Minnesota.