CHAPTER 13. IMPROPER PAYMENTS
IC 22-4-13
Chapter 13. Improper Payments
IC 22-4-13-1
Overpayment; fraud; mistake; collection
Sec. 1. (a) Whenever an individual receives benefits or extendedbenefits to which the individual is not entitled under:
(1) this article; or
(2) the unemployment insurance law of the United States;
the department shall establish that an overpayment has occurred andestablish the amount of the overpayment.
(b) An individual described in subsection (a) is liable to repay theestablished amount of the overpayment.
(c) Any individual who knowingly:
(1) makes, or causes to be made by another, a false statement orrepresentation of a material fact knowing it to be false; or
(2) fails, or causes another to fail, to disclose a material fact;and
as a result thereof has received any amount as benefits to which theindividual is not entitled under this article, shall be liable to repaysuch amount, with interest at the rate of one-half percent (0.5%) permonth, to the department for the unemployment insurance benefitfund or to have such amount deducted from any benefits otherwisepayable to the individual under this article, within the six (6) yearperiod following the later of the date the department establishes thatan overpayment has occurred or the date that the determination of anoverpayment becomes final following the exhaustion of all appeals.
(d) Any individual who, for any reason other thanmisrepresentation or nondisclosure as specified in subsection (c), hasreceived any amount as benefits to which the individual is notentitled under this article or because of the subsequent receipt ofincome deductible from benefits which is allocable to the week orweeks for which such benefits were paid becomes not entitled tosuch benefits under this article shall be liable to repay such amountto the department for the unemployment insurance benefit fund or tohave such amount deducted from any benefits otherwise payable tothe individual under this article, within the three (3) year periodfollowing the later of the date the department establishes that theoverpayment occurred or the date that the determination that anoverpayment occurred becomes final following the exhaustion of allappeals.
(e) When benefits are paid to an individual who was eligible orqualified to receive such payments, but when such payments aremade because of the failure of representatives or employees of thedepartment to transmit or communicate to such individual notice ofsuitable work offered, through the department, to such individual byan employing unit, then and in such cases, the individual shall not berequired to repay or refund amounts so received, but such paymentsshall be deemed to be benefits improperly paid.
(f) Where it is finally determined by a deputy, an administrative
law judge, the review board, or a court of competent jurisdiction thatan individual has received benefits to which the individual is notentitled under this article, the department shall relieve the affectedemployer's experience account of any benefit charges directlyresulting from such overpayment. However, an employer'sexperience account will not be relieved of the charges resulting froman overpayment of benefits which has been created by a retroactivepayment by such employer directly or indirectly to the claimant fora period during which the claimant claimed and was paid benefitsunless the employer reports such payment by the end of the calendarquarter following the calendar quarter in which the payment wasmade or unless and until the overpayment has been collected. Thoseemployers electing to make payments in lieu of contributions shallnot have their account relieved as the result of any overpaymentunless and until such overpayment has been repaid to theunemployment insurance benefit fund.
(g) Where any individual is liable to repay any amount to thedepartment for the unemployment insurance benefit fund for therestitution of benefits to which the individual is not entitled underthis article, the amount due may be collectible without interest,except as otherwise provided in subsection (c), by civil action in thename of the state of Indiana, on relation of the department, whichremedy by civil action shall be in addition to all other existingremedies and to the methods for collection provided in this article.
(h) Liability for repayment of benefits paid to an individual (otherthan an individual employed by an employer electing to makepayments in lieu of contributions) for any week may be waived uponthe request of the individual if:
(1) the benefits were received by the individual without fault ofthe individual;
(2) the benefits were the result of payments made:
(A) during the pendency of an appeal before anadministrative law judge or the review board underIC 22-4-17 under which the individual is determined to beineligible for benefits; or
(B) because of an error by the employer or the department;and
(3) repayment would cause economic hardship to the individual.
(Formerly: Acts 1947, c.208, s.1301; Acts 1953, c.177, s.13; Acts1957, c.129, s.1; Acts 1971, P.L.355, SEC.28; Acts 1973, P.L.239,SEC.4.) As amended by Acts 1979, P.L.229, SEC.2; P.L.228-1983,SEC.3; P.L.18-1987, SEC.40; P.L.135-1990, SEC.2; P.L.21-1995,SEC.77; P.L.290-2001, SEC.6; P.L.108-2006, SEC.23.
IC 22-4-13-1.1
Forfeiture of benefits or wage credits; civil penalties
Sec. 1.1. (a) Notwithstanding any other provisions of this article,if an individual knowingly:
(1) fails to disclose amounts earned during any week in theindividual's waiting period, benefit period, or extended benefit
period; or
(2) fails to disclose or has falsified any fact;
that would disqualify the individual for benefits, reduce theindividual's benefits, or render the individual ineligible for benefitsor extended benefits, the individual forfeits any wage credits earnedor any benefits or extended benefits that might otherwise be payableto the individual for the period in which the failure to disclose orfalsification occurs.
(b) In addition to amounts forfeited under subsection (a), anindividual is subject to the following civil penalties for each instancein which the individual knowingly fails to disclose or falsifies anyfact that if accurately reported to the department would disqualify theindividual for benefits, reduce the individual's benefits, or render theindividual ineligible for benefits or extended benefits:
(1) For the first instance, an amount equal to twenty-fivepercent (25%) of the benefit overpayment.
(2) For the second instance, an amount equal to fifty percent(50%) of the benefit overpayment.
(3) For the third and each subsequent instance, an amount equalto one hundred percent (100%) of the benefit overpayment.
(c) The department's determination under this section constitutesan initial determination under IC 22-4-17-2(l) and is subject to ahearing and review under IC 22-4-17-3 through IC 22-4-17-15.
(d) Interest and civil penalties collected under this chapter shallbe deposited in the special employment and training services fundestablished under IC 22-4-25-1.
As added by P.L.108-2006, SEC.24. Amended by P.L.175-2009,SEC.18.
IC 22-4-13-2
Repealed
(Repealed by P.L.129-1984, SEC.4.)
IC 22-4-13-3
Overpayments due to retroactive labor awards; offset andremission
Sec. 3. If an overpayment of benefits is created by a retroactivepayment by the employer for:
(1) awards by the National Labor Relations Board of additionalpay, backpay, or for loss of employment;
(2) any payments made under an agreement entered into by anemployer, either a union or an employee, and the NationalLabor Relations Board; or
(3) payments to an employee by an employing unit madepursuant to the terms and provisions of the Fair LaborStandards Act;
and the employer offsets all or part of the overpaid benefits againstthe award, the employer shall remit the amount offset to the division.
As added by P.L.20-1986, SEC.8.