Overpayments of UI benefits occur when claimants are paid benefits, but are subsequently disqualified for the time period for which payment was issued. This can happen for numerous reasons. A reason for many overpayments in Washington is the requirement to pay claimants on a “conditional” basis while a determination of nonmonetary eligibility is pending. Some overpayments occur due to claimant error or misrepresentation, employer or agency error, or as a result of an appeal.

When claimants are not at fault in causing overpayments, they can request that the overpayment be waived. (This does not, however, apply to conditional payments.) Waiver decisions are made based on the claimant’s financial status.

Claimants who are liable for repayment must pay at least a minimum amount each month. As long as claimants pay the minimum amount due each month, no deduction is made from their UI benefit payments. If they become delinquent in making repayment, part of their UI benefits are taken to repay the debt; this is called an “offset”. In some cases, such as overpayments due to claimant misrepresentation (fraud), the full amount of future weekly benefits can be offset to repay the debt.

The Benefit Payment Control (BPC) unit of the agency attempts to collect overpayments using several methods. In addition to regular billings and repayments made directly to the department by the claimant and offsets of future benefits, other collection activities for accounts include (among others):

• Considering claimants’ Offers in Compromise, if they cannot afford to pay the full debt.
• Garnishing claimants’ wages when they return to work.
• Filing legal documents to recover the debt when claimants file for bankruptcy.