What Should I Do If Unemployment Wants To Be Paid Back?

Unemployment compensation is intended to be a lifeline for people who have lost their jobs. But sometimes, the Connecticut Department of Labor believes that unemployment benefits have been paid in error. When that happens, the Department of Labor will send out a notice of overpayment.

This can occur for various reasons. The most common reason is when an employer successfully appeals the decision to award unemployment benefits. Depending on the time it takes to schedule the appeal, the amount the Department of Labor seeks to recover can be over ten thousand dollars.

So what should you do if you receive a notice of overpayment? First, you should carefully review the notice to understand the reason for the claimed overpayment. You may want to consult with an attorney to discuss your options.

If you believe the decision is in error, you have the right to file an appeal of the overpayment decision. You also may have the right to seek a waiver of repayment. In Connecticut, a waiver of repayment can be granted under specific circumstances, primarily for non-fraudulent overpayments. Waivers may be considered when the overpayment was due to an error, mental or physical condition hindering employment, or other exceptional situations. Factors considered may include financial hardship, relinquishing valuable rights due to the overpayment, or when repayment would be unconscionable. Finally, you can negotiate a repayment schedule with the Department of Labor.

If you have received a notice of overpayment from the Connecticut Department of Labor, call the Law Offices of Anthony J. Pantuso, III at 203-726-0284 for assistance.