Tag: Unemployment Overpayment

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.

Are Unemployment Overpayments Serious?

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.

Process for Overpaid Benefits?

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.

Are Unemployment Overpayments Legal?

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.

Overpayments and Misrepresentation

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.

What Should You Do About an Unemployment Overpayment?

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 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.

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.

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.

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.