Ind. Code § 22-4-13-1 Overpayments resulting from fraud, failure to report wages received, or other reason; collection; repayment waiver
Sec. 1. (a) Whenever an individual receives benefits or extended benefits to which the individual is not entitled under this article or the unemployment insurance law of the United States, the department shall establish that an overpayment has occurred by issuing a determination of eligibility and shall establish the amount of the overpayment. For an overpayment described in:
(1) subsections (c) and (d), the department has four (4) years from the date of the department's discovery of the overpayment to send notification to the individual of possible overpayment; and
(2) subsection (e), the department has four (4) years from the date of the overpayment to send notification to the individual of possible overpayment.
(b) An individual described in subsection (a) is liable to repay the established amount of the overpayment.
(c) Any individual who knowingly:
(1) fails to disclose amounts earned during any week in the individual's waiting period, benefit period, or extended benefit period;
(2) fails, or causes another to fail, to disclose a material fact; or
(3) falsifies, or causes another to falsify, a material fact;
that would disqualify the individual for benefits, reduce the individual's benefits, or render the individual ineligible for benefits or extended benefits, and as a result thereof has received any amount as benefits to which the individual is not entitled under this article, shall be liable to repay such amount, with interest at the rate of one-half percent (0.5%) per month, to the department for the unemployment insurance benefit fund or to have such amount deducted from any benefits otherwise payable to the individual under this article.
(d) Any individual who fails to report wages received during a week in which benefits were paid or because of the subsequent receipt of income deductible from benefits which is allocable to the week or weeks for which benefits were paid and as a result is not entitled to such benefits under this article shall be liable to repay such amount to the department for the unemployment insurance benefit fund or to have such amount deducted from any benefits otherwise payable to the individual under this article.
(e) An individual who for any reason not described in subsection (c) or (d) has received any amount as benefits to which the individual is not entitled under this article is liable to repay that amount to the department for the unemployment insurance benefit fund or to have that amount deducted from any benefits otherwise payable to the individual under this article.
(f) When benefits are paid to an individual who was eligible or qualified to receive such payments, but when such payments are made because of the failure of representatives or employees of the department to transmit or communicate to such individual notice of suitable work offered, through the department, to such individual by an employing unit, then and in such cases, the individual shall not be required to repay or refund amounts so received, but such payments shall be deemed to be benefits improperly paid.
(g) Where it is finally determined by a deputy, an administrative law judge, the review board, or a court of competent jurisdiction that an individual has received benefits to which the individual is not entitled under this article, the department shall relieve the affected employer's experience account of any benefit charges directly resulting from such overpayment, except as provided under IC 22-4-11-1.5. However, an employer's experience account will not be relieved of the charges resulting from an overpayment of benefits which has been created by a retroactive payment by such employer directly or indirectly to the claimant for a period during which the claimant claimed and was paid benefits unless the employer reports such payment by the end of the calendar quarter following the calendar quarter in which the payment was made or unless and until the overpayment has been collected. Those employers electing to make payments in lieu of contributions shall not have their account relieved as the result of any overpayment unless and until such overpayment has been repaid to the unemployment insurance benefit fund.
(h) Where any individual is liable to repay any amount to the department for the unemployment insurance benefit fund for the restitution of benefits to which the individual is not entitled under this article, the amount due may be collectible without interest, except as otherwise provided in subsection (c), by civil action in the name of the state of Indiana, on relation of the department, which remedy by civil action shall be in addition to all other existing remedies and to the methods for collection provided in this article. The department must commence a civil action as described in this subsection not later than ten (10) years following the date the determination of eligibility becomes final, including the exhaustion of all appeals.
(i) Except as provided in subsection (l), liability for repayment of benefits paid to an individual for any week may be waived upon the request of the individual if:
(1) payment of the benefits was without fault of the individual, regardless of intent; and
(2) repayment would be contrary to equity and good conscience.
(j) An individual's repayment of an overpayment is contrary to equity and good conscience under subsection (i) when the individual's combined household gross income is sixty-five percent (65%) or less of the current Federal Poverty Guidelines for a household of the individual's household size for the first two (2) of the last three (3) completed calendar quarters before the date the waiver request is reviewed.
(k) The following apply to subsection (j):
(1) The size of the household is calculated using the same time period of the first two (2) of the last three (3) completed calendar quarters.
(2) The individual's household consists of the individual as well as the following persons, if they share the use of the individual's dwelling:
(A) The individual's spouse or partner, a person the individual has claimed or plans to claim as a dependent, and a person the individual's spouse or partner has claimed or plans to claim as a dependent.
(B) A military member away on active duty so long as the military member:
(i) is the head or co-head of the household;
(ii) is the spouse of the individual; or
(iii) has left behind a spouse or dependent child in the dwelling.
(C) A child who is:
(i) in joint custody agreements; and
(ii) in the dwelling at least fifty percent (50%) of the time.
(l) A request for waiver under subsection (i) will not be considered in the following circumstances:
(1) An overpayment of benefits paid under any state or federal unemployment compensation law, which were due to a final determination or decision made under:
(A) section 1.1(a) of this chapter; or
(B) any federal unemployment compensation law which subjects individuals to prosecution under 18 U.S.C. 1001.
(2) An overpayment of benefits or extended benefits paid to an individual employed by an employer electing to make payments in lieu of contributions, except that this subdivision does not apply to programs for which the employer is not chargeable for benefit payments.
(m) Beginning July 1, 2025, a request for waiver under subsection (i) must be submitted:
(1) in a form and manner prescribed by the department; and
(2) within fifteen (15) days of the date the determination creating the overpayment becomes final.
(n) If a request for waiver under subsection (i) is denied or partially denied, the individual may submit a request for reconsideration if the individual believes that there has been a significant change in circumstances which would cause repayment to be contrary to equity and good conscience. However, the following apply to this subsection:
(1) At least six (6) months must have elapsed between the final determination on the waiver request and the request for reconsideration.
(2) No individual may submit more than two (2) requests for reconsideration for a particular overpayment.
(o) Unless explicitly required by other state or federal unemployment compensation law, no amounts paid toward an overpayment of benefits that is subsequently waived will be refunded.
Formerly: Acts 1947, c.208, s.1301; Acts 1953, c.177, s.13; Acts 1957, 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; P.L.183-2015, SEC.3; P.L.122-2019, SEC.27; P.L.34-2021, SEC.1; P.L.200-2025, SEC.8.