Criteria for Waiver of Unemployment Insurance Overpayment - UI Benefit Payment Control (BPC) - Unemployment Insurance

Waiver of Regular (Non-Pandemic) Unemployment Insurance Benefits Overpayments

The Maryland Department of Labor may waive recovery of an overpayment of regular unemployment insurance benefits when all of the following conditions are met:

• The request for waiver must be made within 30 days from the original establishment of the overpayment (agency makes allowances for filing waiver applications within 30 days of last appeal decision),
• The overpayment cannot be fraud,
• The claimant cannot be at fault for the overpayment,
• The overpayment must be the result of agency error, employer error or the result of an agency re-determination or appeal decision,
• The overpayment cannot be over 1 year old (unless pending appeal outcome), and
• The claimant must lack the ability to repay now and in the foreseeable future (if medical reasons are cited, then documentation must be on file with agency)
  or
• The claimant's family income is likely to be below the Federal minimum poverty level for claimant family size and area of residence, and likely to remain there.

Source: Code of Maryland Regulations (COMAR) 09.32.07.04-08

Request for Waiver of Regular Unemployment Insurance Overpayment

Waiver of Federal Pandemic Unemployment Insurance Benefits Overpayments

The Maryland Department of Labor may waive recovery of an overpayment of federal pandemic unemployment insurance benefits (PUA, PEUC, FPUC, and/or MEUC benefits). Claimants should request a waiver of overpayment recovery within 30 days from the date of the overpayment determination or the date on which the Maryland Department of Labor notified you of your right to request a waiver, whichever is later.

In assessing waiver requests for federal pandemic overpayments, the Maryland Department of Labor must determine that:

• The overpayment was not the claimant’s fault, and
• Repayment would be contrary to equity and good conscience. With regard to this requirement, the Maryland Department of Labor must consider the following factors:
• It would cause the claimant financial hardship,
• Recovery could be unconscionable under the circumstances, or
• The claimant can show (regardless of their financial circumstances) that due to the determination that such federal pandemic benefits payment would be made or because of the incorrect federal pandemic benefits payment, either they have relinquished a valuable right or changed positions for the worse (in other words, that the claimant relied on the benefits to their detriment).

To apply for the waiver of federal pandemic overpayments, complete the request form linked below, include all necessary attachments, and mail to the address on the form.

NOTE: If you have been assessed an overpayment of federal pandemic benefits and regular unemployment insurance benefits, fill out and mail both forms on this page. However, you only need to fill out the financial information on one of the forms, and you only need to include one copy of any relevant attachments.

Source: Coronavirus Aid, Relief, and Economic Security Act, The Continued Assistance for Unemployed Workers Act of 2020, American Rescue Plan Act.

Request for Waiver of Recoupment of Overpayment of Federal Pandemic Unemployment Insurance Benefits