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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 268

Section 268.18

Recent History

268.18 Return of benefits; offenses.

Subdivision 1. Erroneous payments. (a) Any claimant who, by reason of the claimant's own mistake or through the error of any individual engaged in the administration of this chapter or because of a determination, redetermination, or amended determination issued pursuant to section 268.07 or 268.101, has received any benefits that the claimant was not entitled to, shall promptly repay the benefits to the department. If the claimant fails to repay the benefits, the department shall, as soon as the erroneous payment is discovered, determine the amount due and notify the claimant in writing to repay the benefits.

(b) Unless the claimant files an appeal within 15 calendar days after the mailing of the determination of overpayment to the claimant's last known address, the determination shall become final. Proceedings on the appeal shall be conducted in accordance with section 268.105. A claimant may not collaterally attack, by way of an appeal to an overpayment determination, any prior determination issued pursuant to section 268.07 or 268.101, or decision issued pursuant to section 268.105, that has become final.

(c) If the claimant fails to repay the benefits, the commissioner may deduct from any future benefits payable to the claimant in either the current or any subsequent benefit year an amount equivalent to the overpayment determined, except that no single deduction under this subdivision shall exceed 50 percent of the amount of the payment from which the deduction is made, or the overpayment may be collected the same as delinquent contributions. A determination of overpayment shall state the methods of collection the commissioner will use to recover the overpayment. If a claimant has been overpaid benefits under the law of another state because of an error and that state certifies to the department that the claimant is liable under its law to repay the benefits and requests the department to recover the overpayment, the commissioner may deduct from future benefits payable to the claimant in either the current or any subsequent benefit year an amount equivalent to the amount of overpayment determined by that state, except that no single deduction under this subdivision shall exceed 50 percent of the amount of the payment from which the deduction is made.

(d) Benefits paid for weeks more than three years prior to the discovery of error are not erroneous payments.

(e) Notwithstanding paragraph (a), the commissioner shall waive recovery of an overpayment if the commissioner's authorized representative under section 268.105, subdivision 3, determines the overpayment resulted from an administrative failure to identify that a claimant's wage credits were not earned in covered employment. This paragraph shall not apply to misidentification of an employee-employer relationship.

Subd. 2. Fraud. (a) Any claimant who receives benefits by knowingly and willfully misrepresenting, misstating, or failing to disclose any material fact that would have made the claimant not entitled to those benefits has committed fraud. After the discovery of facts indicating fraud, the commissioner shall make a written determination that the claimant was not entitled to benefits that were obtained by fraud and that the claimant must promptly repay the benefits to the department. In addition, the commissioner may deny benefits to a claimant for one to 52 weeks for which the claimant is otherwise entitled to benefits following the week in which the fraud was determined. A denial imposed for fraud shall not apply to any week more than 104 weeks after the week in which the fraud was determined.

(b) Unless the claimant files an appeal within 15 calendar days after the mailing of the determination of overpayment by fraud to the claimant's last known address, the determination shall become final. Proceedings on the appeal shall be conducted in accordance with section 268.105.

(c) If the claimant fails to repay the benefits, the commissioner may deduct from future benefits payable to the claimant in either the current or any subsequent benefit year an amount equivalent to the amount of overpayment determined or the overpayment may be collected the same as delinquent contributions. A determination of overpayment by fraud shall state the methods of collection the commissioner may use to recover the overpayment. If a claimant has been overpaid benefits under the law of another state because of fraud and that state certifies to the department that the claimant is liable to repay the benefits and requests the department to recover the overpayment, the commissioner may deduct from future benefits payable to the claimant in either the current or any subsequent benefit year an amount equivalent to the amount of overpayment determined by that state.

(d) A determination of fraud may be made at any time.

Subd. 2a. Offset of state and federal unemployment benefits. To the extent permissible under the laws and constitution of the United States, the commissioner is authorized to enter into or cooperate in arrangements or reciprocal agreements with the United States Secretary of Labor, whereby, overpayments of unemployment benefits as determined under applicable federal law, with respect to benefits or allowances for unemployment provided under a federal program administered by this state under an agreement with the United States Secretary of Labor, may be recovered by offset from unemployment benefits otherwise payable under this chapter or any such federal program. As provided by reciprocal agreement, benefit overpayments as determined under subdivisions 1 and 2 may be recovered by offset from benefits or allowances for unemployment otherwise payable under a federal program administered by this state.

Subd. 2b. Interest. (a) On any benefits fraudulently obtained, as determined under subdivision 2, the commissioner shall have the discretion to assess interest at the rate of 1-1/2 percent per month on any overpaid amount which remains unpaid 30 calendar days after the date of the determination of overpayment by fraud. A determination of overpayment by fraud shall state that interest may be assessed.

(b) Any money received in repayment of fraudulently obtained benefits and interest thereon shall be first applied to the overpayment balance.

(c) Unpaid interest may be collected the same as delinquent contributions.

Subd. 3. Renumbered 268.182

Subd. 4. Cancellation of benefits paid through error or fraud. (a) If benefits paid through error are not repaid or deducted from subsequent benefit amounts as provided for in subdivision 1 within six years after the date of the determination of overpayment, the commissioner shall cancel the overpayment balance, and no administrative or legal proceedings shall be used to enforce collection of those amounts.

(b) If benefits paid as a result of fraud are not repaid or deducted from subsequent benefits as provided for in subdivision 2 within ten years after the date of the determination of overpayment by fraud, the commissioner shall cancel the overpayment balance and any interest due, and no administrative or legal proceeding shall be used to enforce collection of those amounts.

(c) The commissioner may cancel at any time benefits paid through error or fraud that the commissioner determines are uncollectible due to death or bankruptcy.

Subd. 5. Repealed, 1997 c 66 s 81

Subd. 6. Renumbered 268.184

HIST: (4337-36) Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 29,31; 1997 c 66 s 71-73,79