1. (1) The Department may waive recovery of a nonfault overpayment if the claimant:

   1. (a) is currently eligible to receive unemployment insurance benefits from the state and has filed a weekly claim with the Department within the last 27 days;

   2. (b) requests a waiver within ten days, or shows good cause in accordance with Section R994-403-106a for failing to request a waiver within ten days, of:

      1. (i) notification of the opportunity to request a waiver;
      2. (ii) the first offset of unemployment insurance benefits following a reopening; or
      3. (iii) a significant change in the claimant's financial circumstances; and

   3. (c) shows that recovery of the 50% offset as provided in Section R994-406-202 would make the claimant unable to pay for the basic needs of survival for the claimant's immediate family, dependents, and other household members.

      1. (i) The claimant must provide verification of financial resources and the social security numbers of family members, dependents, and household members.
      2. (ii) Before granting the waiver, the Department must consider all potential financial resources of the claimant, the claimant's family, dependents, and other household members.
      3. (iii) "Unable to pay for the basic needs of survival" means "economically disadvantaged" and is defined as 70% of the Lower Living Standard Income Level (LLSIL). Therefore, if the claimant's total family resources in relation to family size are not more than 70% of the LLSIL, the waiver will be granted provided the economic circumstances are not expected to change within the next 90 days. Individual expenses will not be considered. Available financial resources, current income, and anticipated income will be included and averaged for the 90 days.
2. (2) Any nonfault overpayment outstanding at the time the request is granted is forgiven and the claimant has no further repayment obligation.
3. (3) A waiver may not be granted retroactively for any payments made against an overpayment or for any portion of the overpayment which has already been offset unless the offset was made pending a decision on a timely waiver request which is ultimately granted.
4. (4) A claimant with an outstanding nonfault overpayment may also apply for an offer in compromise as provided in Section R944-305-1201.

KEY: overpayments, unemployment compensation

Date of Last Change: March 31, 2022

Notice of Continuation: May 2, 2022

Authorizing, and Implemented or Interpreted Law: 35A-4-406(2); 35A-4-406(3); 35A-4-406(4); 35A-4-406(5)