2004 Minnesota Statutes

     268.18 Unemployment benefit overpayments. 

    Subdivision 1.    Nonfraud overpayment.  (a) Any 
 applicant who (1) by reason of the applicant's own mistake, or 
 (2) because of an error by any employee of the department, or 
 (3) because of a determination or amended determination issued 
 pursuant to section 268.07 or 268.101, or (4) because of an 
 appeal decision under section 268.105, has received any 
 unemployment benefits that the applicant was not entitled to, 
 shall promptly repay the unemployment benefits to the trust 
 fund. The commissioner shall, as soon as the overpayment is 
 discovered, determine the amount due and notify the applicant to 
 repay the unemployment benefits. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the sending of the determination of overpayment to 
 the applicant by mail or electronic transmission, the 
 determination shall become final.  Proceedings on the appeal 
 shall be conducted in accordance with section 268.105.  An 
 applicant 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 applicant fails to repay the unemployment 
 benefits determined overpaid under this subdivision, the 
 commissioner may offset from any future unemployment benefits 
 otherwise payable the amount of the overpayment.  Except when 
 the overpayment resulted because the applicant failed to report 
 deductible earnings or deductible or benefit delaying payments, 
 no single offset shall exceed 50 percent of the amount of the 
 payment from which the offset is made.  The overpayment may also 
 be collected by the same methods as delinquent payments from an 
 employer.  A determination of overpayment shall state the 
 methods of collection the commissioner may use to recover the 
 overpayment.  

    (d) If an applicant has been overpaid unemployment benefits 
 under the law of another state, due to a reason other than 
 fraud, and that state certifies that the applicant is liable 
 under its law to repay the unemployment benefits and requests 
 the commissioner to recover the overpayment, the commissioner 
 may offset from future unemployment benefits otherwise payable 
 the amount of overpayment, except that no single offset shall 
 exceed 50 percent of the amount of the payment from which the 
 offset is made.  

    (e) If under paragraph (c) or (d) the reduced unemployment 
 benefits as a result of a 50 percent offset is not a whole 
 dollar amount, it shall be rounded down to the next lower whole 
 dollar. 

    (f) Unemployment benefits paid for weeks more than three 
 years prior to the discovery of overpayment under this 
 subdivision are not overpaid unemployment benefits. 

    Subd. 2.    Overpayment due to fraud.  (a) Any applicant 
 who receives unemployment benefits by knowingly 
 misrepresenting, misstating, or failing to disclose any material 
 fact, or who makes a false statement or representation without a 
 good faith belief as to the correctness of the statement or 
 representation, has committed fraud.  After the discovery of 
 facts indicating fraud, the commissioner shall make a 
 determination that the applicant obtained unemployment benefits 
 by fraud and that the applicant must promptly repay the 
 unemployment benefits to the trust fund.  In addition, the 
 commissioner shall assess a penalty equal to 25 percent of the 
 amount fraudulently obtained.  If the applicant had a prior 
 overpayment due to fraud, the commissioner shall, on the present 
 overpayment, assess a penalty equal to 50 percent of the amount 
 fraudulently obtained.  This penalty is in addition to penalties 
 under section 268.182. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the sending of the determination of overpayment by 
 fraud to the applicant by mail or electronic transmission, the 
 determination shall become final.  Proceedings on the appeal 
 shall be conducted in accordance with section 268.105.  

    (c) If the applicant fails to repay the unemployment 
 benefits, penalty, and interest assessed, the commissioner shall 
 offset from future unemployment benefits otherwise payable the 
 total amount due.  The total due may also be collected by the 
 same methods as delinquent payments from an employer.  A 
 determination of overpayment by fraud shall state the methods of 
 collection the commissioner may use to recover the overpayment.  
 Money received in repayment of fraudulently obtained 
 unemployment benefits, penalties, and interest shall first be 
 applied to the unemployment benefits overpaid, then to the 
 penalty amount due, then to any interest due.  Payments made 
 toward penalty and interest shall be credited to the contingent 
 account. 

    (d) If an applicant has been overpaid unemployment benefits 
 under the law of another state because of fraud and that state 
 certifies that the applicant is liable to repay the unemployment 
 benefits and requests the commissioner to recover the 
 overpayment, the commissioner may offset from future 
 unemployment benefits otherwise payable the amount of 
 overpayment.  

    (e) A determination of overpayment by fraud may only be 
 made within four years of the effective date of the benefit 
 account from which the unemployment benefits were fraudulently 
 obtained.  

    Subd. 2a.  Renumbered subd 3a 

    Subd. 2b.    Interest.  (a) On any unemployment benefits 
 fraudulently obtained, and any penalty amounts assessed under 
 subdivision 2, the commissioner may assess interest at the rate 
 of 1-1/2 percent per month on any amount that 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 shall be assessed. 

    (b) If this subdivision became effective after the date of 
 the determination, or the determination did not state that 
 interest shall be assessed, interest shall be assessed beginning 
 30 calendar days after notification, by mail or electronic 
 transmission, to the applicant. 

    Subd. 3. Renumbered 268.182 

    Subd. 3a.    Offset of federal unemployment benefits.  
 The commissioner is authorized to enter into reciprocal 
 agreements with the United States Secretary of Labor, whereby, 
 overpayments of unemployment benefits as determined under 
 federal law, may be recovered by offset from unemployment 
 benefits otherwise payable and unemployment benefit overpayments 
 under subdivisions 1 and 2 may be recovered by offset from 
 unemployment benefits otherwise payable under a federal program. 

    Subd. 4.    Cancellation of overpayments.  (a) If 
 unemployment benefits determined overpaid under subdivision 1 
 are not repaid or offset from subsequent unemployment benefits 
 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 unemployment benefits determined overpaid under 
 subdivision 2 including penalties and interest are not repaid or 
 offset from subsequent unemployment 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 penalties and 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 any 
 overpayment, including penalties and interest, that the 
 commissioner determines is uncollectible due to death or 
 bankruptcy. 

    Subd. 4a.    Court fees.  (a) If the commissioner is 
 required to pay any court fees in an attempt to enforce 
 collection of overpaid unemployment benefits, penalties, or 
 interest, the commissioner may add the amount of the court fees 
 to the total amount due. 

    (b) If an applicant who has been determined overpaid 
 unemployment benefits because of fraud seeks to have any portion 
 of the debt discharged under the federal bankruptcy code, and 
 the commissioner files an objection in bankruptcy court to the 
 discharge, the commissioner may add the commissioner's cost of 
 any court fees to the debt if the bankruptcy court does not 
 discharge the debt. 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 5.    Remedies.  (a) Any method undertaken to 
 recover an overpayment of unemployment benefits, including any 
 penalties and interest, shall not be considered an election of a 
 method of recovery.  

    (b) Intervention or lack thereof, in whole or in part, in a 
 workers' compensation matter under section 176.361 shall not be 
 considered an election of a remedy and shall not prevent the 
 commissioner from determining any unemployment benefits overpaid 
 under subdivision 1 or 2 or taking action under section 268.182. 

    Subd. 6. Renumbered 268.184 

    Subd. 6.    Collection of overpayments.  (a) The 
 commissioner may not compromise the amount that has been 
 determined overpaid under this section including penalties and 
 interest.  

    (b) The commissioner shall have discretion regarding the 
 recovery of any overpayment under subdivision 1.  Regardless of 
 any law to the contrary, the commissioner shall not be required 
 to refer any amount determined overpaid under subdivision 1 to a 
 public or private collection agency, including agencies of this 
 state.  

    (c) Amounts determined overpaid under subdivision 1 shall 
 not be considered a "debt" to the state of Minnesota for 
 purposes of any reporting requirements to the commissioner of 
 finance. 

    (d) A pending appeal under section 268.105 shall not 
 suspend the assessment of interest, penalties, or collection of 
 an overpayment under this section. 

    (e) Section 16A.626 applies to the repayment by an 
 applicant of any overpayment, penalty, or interest under this 
 section. 

    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; 1998 c 265 s 36,45; 
 1999 c 107 s 55,66; 2000 c 343 s 4; 2001 c 175 s 46; 1Sp2003 c 3 
 art 2 s 16,17,20; 2004 c 183 s 78-81; 2004 c 206 s 52