Overpayments and Penalties Frequently Asked Questions

An overpayment occurs when you receive Unemployment Insurance benefits that you were not entitled to. This could occur for a number of reasons. These may include:
You made a mistake when claiming weekly benefits.
You were not ready, willing and able to work.
You did not complete the required work search activities for a week or weeks.
You knowingly gave us false or misleading information when filing a claim or claiming weekly benefits.

If you were overpaid, you will receive a written notice in the mail. The Notice of Determination to Claimants for Overpayment gives instructions on how to send a check or money order to pay the total amount due, including both overpaid benefits and monetary penalties. It also gives instructions on how to request a payment plan. Overpaid benefits and monetary penalties can also be collected by taking your state or federal tax refund. Additionally, if you collect benefits in the future, those benefits will be offset to recover any remaining overpayment that you have not repaid. Any partial payment received from you will be applied first to any monetary penalties and then to the balance of the overpayment. Failure to pay the monetary penalty may result in legal action against you. If you disagree with the overpayment determination, you have the right to request a hearing.

If you disagree with the overpayment determination, you have the right to request a hearing. The hearing will be conducted by an impartial judge who is employed by the Unemployment Insurance Appeal Board. If you are present at the hearing and lose all or part of the case, you may file an appeal to the Appeal Board. If the Appeal Board does not rule in your favor, you have 30 days from the date of the Appeal Board's decision to apply to the Appeal Board for a reconsideration of the decision, or appeal to the Appellate Division of the State Supreme Court, Third Department.
We will not try to collect payments from you while your appeal is in progress. Any payment you made will be refunded if you are found eligible for benefits.

For more information on the appeals process, visit the Unemployment Insurance Appeal Board website and choose "Questions & Answers.

Even though you did not receive the money withheld for child support and taxes, it counts towards your total overpayment. That is because the money we withhold was paid by us on your behalf to fulfill your child support and tax obligations.

A monetary penalty is assessed if the Department of Labor determines that you willfully made false statements or representations, or purposely withheld pertinent information, in order to obtain benefits.

You should call the Telephone Claims Center right away, at 888-209-8124. Call during the hours of operation: Monday through Friday, 8 am to 5 pm. (Please note that you may have difficulty reaching a representative when there is high call volume.) Or, you can send a secure message from your online account. Sign in to your account at www.labor.ny.gov/signin and click on the envelope icon on the My Online Services page. If you claimed for the entire week but you worked between 11-30 hours, it is very important for you to contact us. If you don’t contact us, you may have to repay benefits and be subject to civil penalties and the loss of future benefits.

An overpayment is benefits you were not entitled to.
A monetary penalty is a fine assessed on the full amount of overpaid benefits when the Department of Labor determines that you willfully made false statements or representations, or purposely withheld pertinent information, in order to obtain benefits.

No. The monetary penalty must be assessed unless it is overruled by an Administrative Law Judge, the Appeal Board, or a court.

A forfeit day (or days) are days in the future for which you cannot receive Unemployment Insurance benefits. Forfeit days are assessed if you willfully made a false statement or representation to get benefits.
A forfeit day penalty can be for one day, or it can be for several days. For every forfeit day that is assessed, you lose 25% of your benefits for that week. If you have four forfeit days, you would receive no benefits for that week. This is because there is a maximum of four effective days of benefits in a week. If you have more than four forfeit days, the additional forfeit days are carried over to the following week.
For example, if you have five forfeit days, you would receive no benefits the first week, and you would have a 25% reduction in your benefits the following week.

If your forfeit day penalty has not expired, any payments you may be eligible for on future claims will first be used to satisfy your forfeit day penalty. This will reduce the amount of money you receive in future UI benefit payments.

Yes. The expiration date of a forfeit day penalty is two years minus one day from the mail date of the Notice of Determination. If you appeal the determination, the expiration date of the penalty is two years minus one day from the mail date of the appeal decision.

Yes. Instructions for appeal of determinations are included on the Notice of Determination to Claimants for Overpayment. More information about hearings is in the Unemployment Insurance Claimant Handbook, which is available online if you chose not to have it mailed to you.
We will not try to collect payments from you while your appeal is in progress. Any payment you made will be refunded if you are found eligible for the benefits.
For more information on the appeals process, visit the Unemployment Insurance Appeal Board website and choose "Questions & Answers.

No. The monetary penalty is imposed in addition to the forfeit day penalty.

The amount of the monetary penalty is calculated based on the amount of overpaid benefits.
If the willful overpayment is $666.67 or greater, the monetary penalty is 15% of the total overpayment.
If the willful overpayment is $666.66 or less, the monetary penalty is $100.

Yes. The monetary penalty applies to all benefits under:
Regular Unemployment Insurance
Extended Unemployment Compensation
Extended Benefits
Combined Wage Claims
Unemployment Compensation for Ex-Service Members
Unemployment Compensation for Federal Employees
Self-Employment Assistance Program
Trade Readjustment Allowances
599 Training Program
Programs created by the CARES Act
No programs related to unemployment are excluded.

You are notified of the monetary penalty on the Notice of Determination to Claimants for Overpayment. The notice tells you the amount of the overpaid benefits, the number of forfeit days imposed, and the amount of the monetary penalty.

Yes. Instructions for appeal of determinations are included on the Notice of Determination to Claimants for Overpayment.
More information about hearings is in the Unemployment Insurance Claimant Handbook, which is available online if you chose not to have it mailed to you. You can also visit Hearing Process Frequently Asked Questions. If you disagree with the overpayment determination, you have the right to request a hearing. The hearing will be conducted by an impartial judge who is employed by the Unemployment Insurance Appeal Board. If you are present at the hearing and lose all or part of the case, you may file an appeal to the Appeal Board. If the Appeal Board does not rule in your favor, you have 30 days from the date of the Appeal Board’s decision to apply to the Appeal Board for a reconsideration of the decision or appeal to the Appellate Division of the State Supreme Court, Third Department.
We will not try to collect payments from you while your appeal is in progress. Any payment you made will be refunded if you are found eligible for the benefits.
For more information on the appeals process, visit the Unemployment Insurance Appeal Board website and choose "Questions & Answers.

To view the balance of your debt:
Sign in to your account at www.labor.ny.gov/signin
On the My Online Services page, select “Unemployment Services”
Select “View Payment History”
If you have any remaining debt, it will be listed near the top of the page.

Send a check or money order payable to "Unemployment Insurance Division," and mail it to:
Unemployment Insurance Division
NYS Department of Labor
P.O. Box 1195
Albany, NY 12201
Overpaid benefits and monetary penalties can also be collected by taking your state or federal tax refund. Any partial payment received from you will be applied first to any monetary penalties and then to the balance of the overpayment. Failure to pay the monetary penalty may result in legal action against you.

No. At this time, the Department of Labor does not accept credit card or debit card payments. The Department of Labor only accepts, by mail, checks or money orders.
Phone and online payments are not available.

Yes, if you are eligible for a payment plan. The maximum length of a payment plan is 36 months. If your debt is greater than $900, your minimum monthly payment will be your current balance due divided by 36. If your debt is $900 or less, your minimum monthly payment will be $25.
If you have a payment plan, payments must be received by the 15th of each month. You may pay in full or pay more than the monthly payment at any time. If you fail to make a monthly payment on time, you might be considered in default and you might not be able to set up a new payment plan. In addition, we may refer your debt to the New York State Department of Taxation and Finance and the United States Department of the Treasury. They will send us all or part of any tax refunds you are due in order to pay your debt in full.

Call:
Collections Unit at 800-533-6600
OR

Write to:
Unemployment Insurance Division
NYS Department of Labor
P.O. Box 1195
Albany, NY 12201
Be sure to only write the last four digits of your Social Security number on your request.

If you do not pay back an overpayment or monetary penalty, the Department of Labor may take legal action to file a judgment against you.
Once entered, a judgment is good and can be used against you for 20 years. Your money, including a portion of your paycheck and/or bank account, may be taken. Also, a judgment may hurt your credit score and may affect your ability to rent a home, find a job or take out a loan.
New York State also has what is called a "right of offset." If you do not pay back benefits that were overpaid to you, we can seize any payments New York State may owe you. These include future Unemployment Insurance benefits, contract payments, state tax refunds and other payments. We can also seize federal tax refunds and payments to collect any debt you owe us.
If you collected benefits that you should not have received from another state or federal program, the Department of Labor must deduct repayment of those funds from your Unemployment Insurance benefits.

Yes, the federal government requires that any payment made under CARES Act programs be reduced to recover any debt owed.

You will receive a notice from the Internal Revenue Service or the New York State Department of Taxation & Finance that your tax refunds are being used to pay your Unemployment Insurance debt. This will follow multiple warning notices sent to you from the Department of Labor telling you that your refunds will be seized if you do not pay your debt.
Please note that our agency may not receive your tax refunds for several weeks. If the amount taken out of your taxes is more than what you owe us, you will receive a refund from us. Allow at least six weeks from the date on the notice you received from the Internal Revenue Service or New York State Department of Taxation & Finance for our office to issue your refund. Refunds will be paid to your Unemployment Insurance benefits debit card or to your bank account, depending on the payment method associated with your claim. If your federal tax refund was seized, you will be charged an administrative fee of $18.90. If you and your spouse file a joint federal income tax return, your spouse may be entitled to part of the federal tax refund. In that case, your spouse should file an Injured Spouse Allocation form (Federal Form 8379). The form instructions explain the steps your spouse must take to receive his or her portion of the federal tax refund.

Certain payments will show on your Form 1099-G. They will be listed on the form in Box2, Adjustments. These include:
Cash payments you sent to pay back your overpaid benefits
Your income tax refunds that were used to pay back your overpaid benefits
Payments that will not show on your Form 1099-G include: Payments you made to cover penalties
Unemployment Insurance benefits that were used to pay back your overpayment