Excessive Unemployment Benefits: The Burden of Receiving More Than Due Compensation
The U.S. Department of Labor recently reported that 16.47% of unemployment insurance (UI) payments were improper, including overpayments. The amount one can collect weekly is typically based on their previous earnings.
Sarah Foster of Bankrate explained that overpayments occur when the state erroneously disburses too much money. "In such cases, you may receive a larger check than expected," she said. However, she warns that this overpayment may lead to a request for repayment from the government, which can be costly if not addressed promptly.
Foster advises those collecting UI to maintain regular communication with their state unemployment office and to familiarize themselves with the rules. If an overpayment occurs, they may need to repay the money by a specified deadline.
If recipients notice they are receiving more money than they should, Foster suggests applying for an unemployment overpayment waiver or seeking an arrangement to split the payments. In the event of financial hardship, they may be eligible for relief, such as a payment plan or a waiver of the overpayment.
Foster also mentioned that individuals who have been overpaid could appeal the decision or request a waiver, and they might be able to negotiate a more manageable payment schedule if they are unable to pay the overpayment in full.
Sarah Foster of Bankrate advises that if an overpayment occurs while collecting UI, recipients may need to repay the money by a specified deadline. In financial hardship, they might be eligible for relief such as a payment plan or a waiver of the overpayment.
