1. (1) When the claimant has been determined to be at fault in the creation of an overpayment pursuant to Section R994-406-301, the overpayment must be repaid. If the claimant is otherwise eligible and files for additional unemployment insurance benefits during the same or any subsequent benefit year, 100% of the unemployment insurance benefits to which the claimant is entitled will be used to reduce the overpayment.
2. (2) Full restitution is required for fault overpayments except as provided in Section R994-305-1201. However, collection procedures may be held in abeyance at the Department's discretion and the overpayment will be deducted from future unemployment insurance benefits payable during the current or subsequent benefit years. The Department may exercise its discretion only if the Department or the employer share fault in the creation of the overpayment but it is determined the claimant was more at fault under Section R994-403-119e.

3. (3) Collection Procedures.

   1. (a) The Department will send an initial overpayment notice on outstanding fault or fraud overpayments. If, after 15 days, the claimant does not either pay in full or enter into an installment payment agreement as provided in Subsection (4) of this section, the account will be considered delinquent and the claimant will be notified that a warrant will be filed unless a payment is received or an installment agreement entered into within 15 days. However, there may be other circumstances under which a warrant may be filed on any outstanding overpayment. A warrant attaches a lien to any personal or real property and establishes a judgment that is collectible under Utah Rules of Civil Procedure.
   2. (b) Outstanding overpayments on which a lien has been created will be reported to the State Division of Finance for collection whereby any refunds due to the claimant from state income tax or any such rebates, refunds, or other amounts owed by the state and subject to attachment may be applied against the overpayment.
   3. (c) Overpayments that are past due, enforceable, and attributable to fraud or the claimant's failure to report earnings shall be submitted to the Treasury Offset Program whereby the Secretary of the Treasury may offset federal tax refund payments to be applied against the overpayment. Only overpayments for which a valid warrant has been filed for failure to repay, that lack an installment agreement, or are not current on approved installment agreement payments will be subject to the Treasury Offset Program.
   4. (d) No warrant will be issued on fault overpayments provided the claimant enters into an installment agreement within 30 days of the issuance of the initial overpayment notice and payments are made in a timely manner in accordance with the installment agreement.

4. (4) Installment Payments.

   1. (a) If repayment in full has not been made within 30 days of the initial overpayment notice or the claimant has not voluntarily entered into an installment agreement or offer in compromise as provided in Section R994-305-1201, the Department will allow the claimant to pay in installments by notifying the claimant in writing of the minimum installment payment which the

      claimant shall make. If the claimant cannot make the minimum installment payment, the claimant may request a review within ten days of the date written notice is mailed.

   2. (b) Whether voluntarily or involuntary, installment payment amounts will be established using the following formulas.

      1. (i) If the entire overpayment is $3,000 or less, the monthly installment payment is equal to 50% of the claimant's weekly benefit entitlement.
      2. (ii) If the entire overpayment is $3,001 to $5,000, the monthly installment payment is equal to 100% of the claimant's weekly benefit entitlement.
      3. (iii) If the entire overpayment is $5,001 to $10,000, the monthly installment payment is equal to 125% of the claimant's weekly benefit entitlement.
      4. (iv) If the entire overpayment is $10,001 or more, the monthly installment payment is equal to 150% of the claimant's weekly benefit entitlement.
   3. (c) Installment agreements will not be approved in amounts less than those established in Subsection R994-406-302(4)(b) except in cases where the claimant meets the requirements of economically disadvantaged as defined in Subsection R994-406-203(1)(c)(iii). On a periodic basis, the Department may send notice to the claimant requesting verification of the claimant's disadvantaged status. If the claimant fails to provide the verification as requested, or no longer qualifies for a lesser installment payment, the Department will send the claimant a new monthly payment amount. The new installment payment amount may be in accordance with the percentages in Subsection R994-406-302(4)(b) or a lesser amount depending on the information received from the claimant.
   4. (d) Minimum monthly installment agreement payments must be received by the Department by the last day of each month. Payments not made timely are considered delinquent.

5. (5) Offsetting overpayments with subsequent eligible weeks.

   1. (a) If an overpayment is set up under Section R994-406-201 or R994-406-301 for weeks paid on a claim, the claimant may repay the overpayment by filing for open weeks in the same benefit year after the claim has been exhausted, provided the claimant is otherwise eligible.
   2. (b) One hundred percent of the compensation amount for each eligible week claimed will be credited to the established overpayment up to the total amount of the outstanding overpayment balance owed to the Department.

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)