TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.1 RECOVERY OF BENEFITS BY RECOUPMENT
Section 2835.1 Recovery of
Benefits by Recoupment
a) The Director may recover by recoupment any unemployment
insurance benefits that are determined to have been overpaid to an individual.
Recoupment is a method by which the Director deducts from any benefits payable
to a claimant the amounts of benefits he was found not entitled to receive
under the law.
b) The recoverable amounts may be either regular or extended
benefits paid under either the Unemployment Insurance Act [820 ILCS 405] (Act),
or the Federal Unemployment Compensation Act for Federal Employees (5 USC 8501
et seq.) or Ex-Servicemen (5 USC 8521 et seq.) (UCFE and UCX) programs
administered by the Director or any other federal unemployment insurance
program administered by the Director (see Table A).
(Source Amended at 32 Ill. Reg. 18978, effective December 1, 2008)
 | TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.5 AMOUNTS RECOVERABLE BY RECOUPMENT
Section 2835.5 Amounts
Recoverable by Recoupment
a) Benefits paid under state law subject to recoupment:
1) The entire amount of benefits previously paid to a claimant
later found ineligible pursuant to a reconsidered Finding or reconsidered
Determination, or pursuant to a Decision of a Hearings Referee or of the Director
under Section 604 of the Act, which modifies or sets aside a Finding or
Determination or a reconsidered Finding or reconsidered Determination. To the
extent allowed by law, such benefits will be recouped from future State or
federal benefits payable to a claimant as set forth in Table A. For purposes
of this Section only, if the Board of Review remands a case to the Hearing
Referee who then decides that the claimant is ineligible for benefits, such
Decision shall make any benefits for which the claimant is then ineligible
subject to recoupment.
EXAMPLE: The Referee affirms a Determination by an Adjudicator holding a
claimant eligible for benefits which have been paid to the claimant. Upon
appeal, the Board of Review remands the case back to the Referee who then sets
aside the Adjudicator's Determination and holds the claimant ineligible. The
benefits for which the claimant was overpaid are now subject to recoupment.
2) Benefits paid to a claimant for weeks with respect to which he
or she received wages by reason of a back pay award made by a governmental
agency or pursuant to arbitration proceedings or by reason of payment of wages
wrongfully withheld by an employing unit.
b) Benefits paid under federal programs subject to recoupment:
1) Benefits paid to UCFE-UCX claimants who have been found
ineligible to receive such benefits in a reconsidered Finding or Determination,
or in a Decision of a Hearings Referee or the Director, may be recouped from
either future UCFE-UCX benefits, or State or other federally funded benefits
payable to such claimant.
2) Recoupment of benefits paid to ineligible claimants under
other federal programs administered by the Director shall be governed by the
applicable federal law.
c) Waiver of Recoupment − Recoupment from future benefits
referred to in subsections (a) and (b) may be waived from week to week in the
manner provided in Section 2835.30 of this Part.
(Source: Amended at 32 Ill. Reg. 18978, effective December 1, 2008)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.10 TIME LIMITS WITHIN WHICH TO RECOUP BENEFITS
Section 2835.10 Time Limits
Within Which to Recoup Benefits
a) Benefits obtained by means of fraud: When the claimant
knowingly makes a false statement or knowingly fails to disclose a material
fact in order to receive regular or extended benefits to which he or she is
ineligible, such benefits may be recouped at any time from future benefits
payable to the claimant. See Table A for the time limits regarding recoupment
of benefits obtained by means of fraud under federal programs, including UCFE-UCX
and special programs.
b) Benefits obtained without fraud: When a claimant has been
found ineligible to receive regular or extended benefits for any reason other
than reasons stated in subsection (a), the benefits received may be recouped
within five years from the date the claimant was found ineligible by a Claims Adjudicator,
Hearings Referee or by the Director. The same time limit of five years shall
apply to the recoupment of regular or extended UCFE-UCX benefits paid to
ineligible claimants for any reason other than the reason stated in subsection
(a).
c) With
respect to other federally funded benefits administered by the Director, the
provisions of the appropriate federal law shall be applicable.
(Source: Amended at 32 Ill. Reg. 18978, effective December 1, 2008)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.15 EXTENT OF RECOUPMENT
Section 2835.15 Extent of
Recoupment
a) Benefits recoverable under Section 2835.5(a) shall be recouped
in full or to the extent of the benefits payable to the claimant, subject to
the time limits provided in Section 2835.10.
1) The amount to be recouped in any particular week shall not
exceed 25% of the claimant's weekly benefit amount provided that the
recoverable benefits were not obtained by fraudulent means stated in Section
2835.10(a). The same limitation on the amount of recoupment shall apply to
UCFE-UCX and Trade Readjustment Allowance (TRA) benefits (see 19 USC 2291-2298).
2) With respect to other federally funded benefits administered
by the Director, the provisions of the appropriate federal law shall be
applicable.
b) If the claimant knowingly makes a false statement or knowingly
fails to disclose a material fact in order to receive benefits to which he or
she is not entitled, the entire weekly benefit amount payable to the claimant
is subject to recoupment until the full amount of the recoverable benefits has
been completely recovered.
c) The extent and period of time for recoupment, as defined in Section
2835.10 and this Section, except for TRA benefits, shall be as set forth in
Table A.
(Source: Amended at 32 Ill. Reg. 18978, effective December 1, 2008)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.20 NOTICE OF RECOUPMENT DECISION
Section 2835.20 Notice Of
Recoupment Decision
The individual whose benefits
have been decided by the claims adjudicator to be the subject of recoupment
shall be given prompt notice of the decision, which shall state the reason for
recoupment, the weeks with respect to which such sum was received by the
individual, the time within which the benefits may be recouped, and the right
to seek waiver or recoupment and the grounds for such waiver.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.25 RECONSIDERATION OR APPEAL OF RECOUPMENT DECISION
Section 2835.25
Reconsideration Or Appeal Of Recoupment Decision
a) The individual who has received a notice of recoupment
decision may ask for a reconsideration of this decision by the claims
adjudicator at any time within one year from the date of the decision, or
appeal the decision to a hearings referee within thirty days after it has been
delivered to him or mailed to his last known address.
b) The reconsidered decision, if any, is also appealable to a
hearings referee within thirty days after it has been delivered to him or
mailed to his last known address.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.30 WAIVER OF RECOUPMENT
Section 2835.30 Waiver Of
Recoupment
a) Recoupment from benefits payable to an individual for any week
may be waived as to that week, upon the claimant's request in writing.
1) The application for waiver shall identify the recoupment
decision provided in 56 Ill. Adm. Code 2835.20, or shall have attached to it a
copy of the recoupment decision.
2) The application shall state the circumstances that would cause
the claimant extreme financial hardship, provided in 56 Ill. Adm. Code 2835.45,
if the recoupment decision is enforced.
3) The claimant shall produce to the claims adjudicator any
evidence in his possession that would establish the basis for the waiver of the
recoupment.
b) The Director shall approve the request for waiver of
recoupment from benefits for a week or weeks for which the claimant certified
as to his eligibility if the benefits have not been paid and if the claimant is
able to prove that he received the recoverable benefits without fault, and
recoupment in the week(s) would be against equity and good conscience pursuant
to 56 Ill. Adm. Code 2835.45.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.33 WAIVER OF RECOVERY (TRA)
Section 2835.33 Waiver of Recovery (TRA)
The Agency shall waive the recovery of any overpayment of
TRA benefits, to the extent authorized to do so under 20 CFR 617.55, as it is
on December 1, 2008 without regard to any later amendments.
(Source: Added at 32 Ill. Reg. 18978,
effective December 1, 2008)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.35 BENEFITS RECEIVED WITH FAULT
Section 2835.35 Benefits
Received With Fault
If, as a result of a
reconsidered finding or reconsidered determination, or a decision of a hearings
referee or of the Director, the claimant is denied benefits for which he had
previously been held to be eligible because he was found to have fraudulently obtained
such benefits as provided in 56 Ill. Adm. Code 2835.10(a), such reconsideration
or decision shall be conclusive proof that the claimant received the
recoverable benefits with fault.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.40 BENEFITS RECEIVED WITHOUT FAULT
Section 2835.40 Benefits
Received Without Fault
The receipt of any sum paid to a
claimant as benefits, due to agency error, is without fault. A good faith
mistake of fact by the claimant in the filing of his claim for benefits which
results in an overpayment of benefits does not constitute fault.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.45 RECOUPMENT AGAINST EQUITY AND GOOD CONSCIENCE
Section 2835.45 Recoupment
Against Equity and Good Conscience
a) Recoupment will be considered to be against equity and good
conscience if the recoupment would cause the individual extreme financial
hardship. For this purpose, extreme financial hardship shall mean the inability
to meet vital financial obligations that cannot be deferred. These obligations
include:
1) Rent, if the individual has received an eviction notice or
five day notice from the landlord;
2) Utility bills, if the individual has received a utility cutoff
notice;
3) Unexpected medical bills not covered by insurance; and
4) Other debts incurred for essential living expenses, the
payment of which cannot be deferred.
b) The decision whether the recoupment would cause an individual
extreme financial hardship shall be based on an assessment of the individual's
complete financial situation. Factors such as the extent of an individual's
savings and his or her eligibility for welfare or other forms of public
assistance shall be relevant in making this decision.
c) Notwithstanding subsections (a) and (b), whenever an
individual is overpaid a sum as benefits and the payment of that sum was the
result of the individual having claimed a dependent, under Section 401 of the
Act, when a dependent child of that same parent had already been claimed as a
dependent by the other parent who was also entitled to claim the dependent and
the individual had responded negatively to the question on this subject on his/her
claim application because the other parent who claimed the dependent had
returned to work, recoupment of the overpaid sum shall be deemed to be against
equity and good conscience.
(Source: Amended at 43 Ill.
Reg. 6512, effective May 14, 2019)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.50 REQUEST FOR AND DECISION REGARDING WAIVER OF RECOUPMENT
Section 2835.50 Request For
And Decision Regarding Waiver Of Recoupment
a) The initial request for waiver of recoupment must be made in
person by the claimant requesting the waiver, unless he or she is physically
unable to appear at the local unemployment office closest to his or her place
of residence. The request must be made in person, online or through the
Teleserve system prior to submitting the certification for benefits for the
week recoupment is scheduled to begin.
b) The local unemployment office shall decide promptly whether or
not to approve the request for waiver of recoupment. The claimant whose
request for waiver of recoupment has been disapproved shall be promptly
informed, in writing, of the reasons for the denial of the waiver.
(Source: Amended at 43 Ill. Reg. 6512, effective May 14, 2019)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.55 RECONSIDERATION OR APPEAL OF DENIAL OF REQUEST FOR WAIVER
Section 2835.55
Reconsideration Or Appeal Of Denial Of Request For Waiver
a) A denial of the request for waiver of recoupment may be
considered by the claims adjudicator within one year from the date of the
decision.
b) The decision denying waiver or the reconsideration thereof, is
also appealable to a hearings referee within thirty days after it has been
delivered to the claimant or mailed to his last known address.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.60 PERIODS WHEN WAIVER OF RECOUPMENT ALLOWED
Section 2835.60 Periods When
Waiver Of Recoupment Allowed
a) Recoupment waiver may be allowed or denied for weeks for which
the claimant has certified and has been found to have met the eligibility
requirements for the payment of benefits which have not yet been paid.
b) If the Director is satisfied that recoupment would cause
extreme financial hardship over a number of weeks, he may authorize that a
request for waiver filed for a particular week be approved for up to a period
of two weeks plus any prior weeks for which benefits have not yet been paid.
c) If the conditions which qualified the claimant for a waiver
persist beyond the end of the waiver period approved by the Director, the
claimant must request waiver for the new period.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.65 WAIVER CERTIFICATIONS BY MAIL
Section 2835.65 Waiver
Certifications By Mail
In situations where the
individual seeking waiver of recoupment shows that the grounds for waiver
relied on under 56 Ill. Adm. Code 2835.30 are of a continued nature, or where
the claimant's reporting in person works a hardship on the claimant, as indicated
in 56 Ill. Adm. Code 2835.50, the claims adjudicator may permit the claimant
requesting periods of waiver under 56 Ill. Adm. Code 2835.50 to certify his
eligibility for waiver by submitting the required information by mail.
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.67 WAIVER OF RECOVERY OF OVERPAYMENTS OF NON-FEDERALLY FUNDED REGULAR AND EXTENDED BENEFITS AND SHORT-TIME COMPENSATION (WORKSHARE, IL)
Section 2835.67 Waiver of Recovery of Overpayments of
Non-federally Funded Regular and Extended Benefits and Short-Time Compensation
(WorkShare, IL)
a) The
Department will permanently waive recovery of any overpayment of non-federally funded regular
and extended unemployment insurance benefits and short-time compensation
(WorkShare, IL) benefits received by an individual on or after March 8, 2020
and prior to the last day of a disaster period established by the gubernatorial
disaster proclamation in response to COVID-19, dated March 9, 2020, and any
consecutive gubernatorial disaster proclamation in response to COVID-19, if the
Department determines that:
1) The
overpayment was without fault on the part of the recipient; and
2) Recovery
would be contrary to equity and good conscience.
b) For
purposes of subsection (a)(1), the provisions of Section 2835.35 are applicable
in determining whether the benefits giving rise to the overpayment were
received with fault on the part of the recipient, and the provisions of Section
2835.40 are applicable in determining whether the benefits giving rise to the
overpayment were received without fault on the part of the recipient. The
examples below give guidance as to whether the overpayment was without fault on
the part of the recipient or whether the overpayment was not without fault on
the part of the recipient.
1) EXAMPLE
1: The claimant was discharged from a job. A claims adjudicator issues a
determination holding that the discharge was for reasons other than misconduct.
The claimant is paid benefits. The employer appeals and an Administrative Law
Judge issues a decision that reverses the claims adjudicator's determination,
resulting in an overpayment being established. This overpayment is without
fault on the part of the claimant because the benefits paid to the claimant
were based on the claims adjudicator's finding that the discharge was not
misconduct.
2) EXAMPLE
2: In filing a claim for benefits a claimant presents the claims adjudicator
with paycheck stubs evidencing that during the claimant's base period, the
claimant received remuneration for services performed for Employing Unit A and
Employing Unit A had not reported to the Department these payments as wages.
The claims adjudicator makes a determination that the payments that the
claimant received from Employing Unit A constituted wages, and consequently,
the claimant's weekly benefit amount is increased by $100 per week. Employing
Unit A appeals and an Administrative Law Judge issues a decision reversing the
claims adjudicator, and holding that the payments from Employing Unit A did not
constitute wages since the claimant's services for Employing Unit A fell within
an exemption from the definition of "employment". The Administrative
Law Judge's decision results in the claimant having an overpayment in the
amount of $100 for each week that the claimant received benefits with respect
to this claim. This overpayment is without fault on the part of the claimant
because the benefits paid to the claimant were based on the claims adjudicator's
finding that the payments constituted wages for Act-insured employment.
3) EXAMPLE
3: The claimant is a full-time teacher and also works part time at a gym. Although
the claimant is paid the full teaching salary during the pandemic, the claimant
is laid off by the gym due to the State's closure order. The claimant files a
claim for benefits and names the gym as the last employer. When a claimant
certifies for benefits each week, all wages earned must be reported. The
claimant certifies for benefits each week but does not report the school wages
because of the erroneous belief that the claim is being filed "against"
the gym. When the failure to report the school wages is discovered, an
overpayment is established. This overpayment is not without fault on the part
of the claimant because, while certifying for benefits, the claimant made a
material misrepresentation in answering the question about wages earned.
4) EXAMPLE
4: The claimant is held to be ineligible for benefits for the weeks between
April 12, 2020 and May 2, 2020, in a determination that became final. Also, in
a determination that became final, the claimant's overpayment for those weeks
is held to be for fraud under Section 901 of the Unemployment Insurance Act
[820 ILCS 405]. Since the claimant's overpayment was adjudicated to finality to
be for fraud, the overpayment is not without fault on the part of the claimant.
Consequently, the claimant is not eligible to make a request for a waiver of
recovery of these overpayments. Therefore, the claimant is not entitled to
receive the notice provided in subsection (f) informing an individual that the
individual may request a waiver of recovery of the overpayment with respect to
the overpayments for these weeks.
c) For
purposes of this subsection, “financial hardship” means the inability to meet
vital financial obligations that cannot be deferred. For purposes of subsection
(a)(2), the provisions of Section 2835.45 are not applicable. Instead, for
purposes of subsection (a)(2), recovery of the overpayment will be considered
to be against equity and good conscience if:
1) It
would cause financial hardship to the person from whom it is sought; or
2) Regardless
of the recipient's financial circumstances, the recipient can show that, based
on the overpayment or notice that a benefit payment would be made, the
recipient has:
A) relinquished
a valuable right; or
B) changed
positions for the worse; or
3) Recovery
would be unconscionable under the circumstances.
d) For
purposes of this Section, if the Department has previously recovered
overpayment funds from a recipient and that recipient is granted a waiver
pursuant to this Section, then that recipient will not be refunded those recovered
monies as no authority has been provided to the Department to refund those recovered
monies in the Unemployment Insurance Act [820 ILCS 405].
e) A claimant's request for a waiver of recovery of
an overpayment of
non-federally funded regular or extended unemployment insurance benefits, or
short-time compensation (WorkShare, IL) benefits, during the time period in
which the Federal Pandemic Unemployment Compensation (FPUC) program provided a
supplement to the claimant's weekly benefit amount, and for which the FPUC
supplemental amount is included in the overpayment amount, will be treated as a
request to waive recovery of the FPUC overpayment, as described in Section
2835.70, as well as recovery of the overpayment based on the non-federally
funded regular or extended unemployment insurance benefits or short-time
compensation (WorkShare, IL) benefits. The determination or decision will set
forth the findings for allowing or denying waiver of recovery of the
overpayment based on the non-federally funded regular or extended unemployment
insurance benefits or the short-time compensation (WorkShare, IL) benefits and
the FPUC overpayment, and will include the reason for the determination or
decision, and when waiver is allowed, the time period of the waiver and the
amount waived.
EXAMPLE: A claimant files a
request for waiver and provides related information to waive a regular
unemployment insurance overpayment from the week beginning June 7, 2020 through
the week ending August 15, 2020. In this case, the FPUC program provided a $600
supplement to the claimant's weekly benefit amount for weeks between June 7,
2020 through the week ending July 25, 2020, and the FPUC supplements are
included as part of the overpayment. The adjudicator determines that the
claimant's request meets the criteria for a waiver of both overpayments, and
states in the determination:
1) the
reasons for the waivers;
2) a
waiver of recovery of the regular overpayment is granted for the period from
the week beginning June 7, 2020 through the week ending August 15, 2020;
3) the
FPUC waiver is granted for the period from the week beginning June 7, 2020
through the week ending July 25, 2020; and
4) the
amount waived for each program.
f) The
Department will identify the individuals who have received an overpayment of
non-federally funded regular or extended unemployment insurance benefits or
short-time compensation (WorkShare, IL) benefits during the period provided in
subsection (a), and to each individual, the Department will mail a notice informing the individual that the individual may
request a waiver of recovery of the overpayment. Pursuant to 56 Ill. Adm.
Code 2720.5, the notice will be sent to the last known address of the
individual as the term "last known address" is defined at 56 Ill.
Adm. Code 2720.35. In order to be eligible for the waiver of recovery of the
overpayment, the individual must file the request within 45 days after the
mailing date of the notice.
EXAMPLE: The Department sends the
notice provided in subsection (f) to the claimant at the last address that the
claimant had provided to the Department. However, the claimant moved to a
different address, notified the United States Postal Service of the new
address, but did not provide the Department with the new address. Service of
the notice to the claimant at the last address provided to the Department is
proper, and the fact that the claimant notified the United States Postal
Service of the new address does not extend the 45 days within which the
claimant must file the request for waiver in order for the request for waiver
to be timely.
g) The
notice provided in subsection (f) will:
1) be a
letter generated by the Department that provides the claimant with notice that
the claimant may request waiver of recovery of one or more overpayments;
2) be
used by the claimant in making the claimant’s request for a waiver of recovery
of any overpayment;
3) contain
a questionnaire for the claimant to provide the information required in subsection
(a); and
4) provide
filing instructions for the claimant.
h) A
determination by an adjudicator for a waiver of recovery of an overpayment
pursuant to this Section may be based on the claimant's interview or written
responses contained in the notice described in subsection (g). An interview
need not be conducted unless the adjudicator determines that more information
is needed to make the determination.
i) A
determination, pursuant to this Section, on a recipient's request for a waiver
of recovery of an overpayment will be subject to reconsideration and appeal as
set forth in Sections 703, 800, 801, and 803 of the Unemployment Insurance Act
[820 ILCS 405].
(Source: Added at 46 Ill. Reg. 5683,
effective March 24, 2022)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.70 WAIVER OF RECOVERY OF OVERPAYMENTS UNDER PANDEMIC UNEMPLOYMENT ASSISTANCE (PUA), FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION (FPUC), PANDEMIC EMERGENCY UNEMPLOYMENT COMPENSATION (PEUC), AND MIXED EARNER UNEMPLOYMENT COMPENSATION (MEUC) PROGRAMS, AND THE FIRST WEEK OF BENEFITS FUNDED BY THE FEDERAL GOVERNMENT
Section 2835.70 Waiver of Recovery of Overpayments Under
Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment
Compensation (FPUC), Pandemic Emergency Unemployment Compensation (PEUC), and
Mixed Earner Unemployment Compensation (MEUC) Programs, and the First Week of
Benefits Funded by the Federal Government
a) The
Department will waive recovery of any overpayment under the Pandemic
Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation
(FPUC), Pandemic Emergency Unemployment Compensation (PEUC), and/or Mixed
Earner Unemployment Compensation (MEUC) programs, and the first week of
benefits funded by the federal government under any State or federal
unemployment program, paid to a recipient if the Department determines that:
1) The
overpayment was without fault on the part of the recipient; and
2) Recovery
would be contrary to equity and good conscience.
b) For
purposes of subsection (a), recovery of the overpayment will be considered to
be against equity and good conscience if:
1) It
would cause financial hardship to the person from whom it is sought;
2) Regardless
of the recipient's financial circumstances, the recipient can show that, based
on the overpayment or notice that a benefit payment would be made, the
recipient has:
A) relinquished
a valuable right; or
B) changed
positions for the worse; or
3) Recovery
would be unconscionable under the circumstances.
c) If
the Department has previously recovered overpayment funds from a recipient and
that recipient is granted a waiver pursuant to this Section, then that
recipient shall be refunded those monies.
d) A
claimant's request for a waiver of recovery of an overpayment under PUA, PEUC,
or the first week of benefits funded by the federal government under any State
or federal unemployment program, during the time period in which the FPUC
program provided a supplement to the claimant's weekly benefit amount, and for
which the FPUC supplemental amount is included in the overpayment amount, shall
be treated as a request to waive recovery of the FPUC overpayment as well as
recovery of the overpayment based on the PUA or PEUC programs, or first week of
benefits funded by the federal government under any State or federal
unemployment program. The determination or decision shall set forth the
findings for allowing or denying waiver of recovery of the overpayment based on
the PUA or PEUC programs, or the first week of benefits funded by the federal
government and the FPUC overpayment separately, including the reason for the determination
or decision, and when waiver is allowed, the time period of the waiver and the
amount waived.
EXAMPLE: A claimant files a
request for waiver and provides related information to waive a PUA overpayment
from the week beginning June 7, 2020 through the week ending August 15, 2020.
In this case, the FPUC program provided a $600 supplement to the claimant's
weekly benefit amount for weeks between June 7, 2020 through the week ending
July 25, 2020, and the FPUC supplements are included as part of the
overpayment. The adjudicator determines that the claimant's request meets the
criteria for a waiver of both PUA and FPUC, and states in the determination:
the reasons for the waivers; that a waiver of the PUA overpayment is granted
from the week beginning June 7, 2020 through the week ending August 15, 2020;
that the FPUC waiver is granted from the week beginning June 7, 2020 through
the week ending July 25, 2020; and the amount waived for each program.
e) When
a claimant requests a waiver of recovery of an FPUC overpayment that
supplemented a weekly benefit amount of an underlying unemployment program
other than PUA and PEUC, the determination for waiver of recovery of the FPUC
amount shall be made as provided by this Section. However, the determination
shall indicate that waiver of recovery of the overpayment of benefits paid
pursuant to the underlying unemployment program (other than PUA or PEUC) is not
authorized by law and is denied.
f) When
a claimant requests a waiver of recovery of an overpayment of the first week of
benefits funded by the federal government under any State or federal
unemployment program, the determination for waiver of recovery of the
overpayment of that first week of benefits shall be made as provided in this
Section. However, the determination shall indicate that waiver of recovery of
the overpayment of benefits paid after the first week pursuant to the
underlying unemployment program (other than PUA or PEUC) is not authorized by
law and is denied.
g) A
determination by an adjudicator for a waiver of recovery of a PUA, FPUC, PEUC,
or MEUC overpayment, or an overpayment for the first week of benefits funded by
the federal government under any State or federal unemployment program,
overpayment may be based on the claimant's interview or written responses
contained in a request form or questionnaire generated by the Department. An
interview need not be conducted unless the adjudicator determines that more
information is needed to make the determination.
h) A
determination on a claimant's request for a waiver of recovery of a PUA, FPUC,
PEUC, MEUC overpayment, or an overpayment for the first week of benefits funded
by the federal government under any State or federal unemployment program,
shall be subject to reconsideration and appeal as set forth in Sections 703,
800, 801, and 803 of the Unemployment Insurance Act [820 ILCS 405].
i) Notwithstanding
the provisions of this Section, based upon authority provided by the U.S.
Department of Labor the Department will waive recovery of the following
overpayments under a single set of facts ("blanket waiver") without a
claimant requesting a waiver:
1) When
an individual is eligible for payment under an unemployment benefit program for
a given week, but through no fault of the individual that individual was paid
incorrectly under either the PUA or PEUC program at a higher weekly benefit
amount (WBA); or
2) Specific
to PUA, when, through no fault of the individual that individual was paid a
minimum WBA higher than the minimum WBA set by federal law and U.S. Department
of Labor guidance.
(Source: Added at 45 Ill. Reg. 8310,
effective June 23, 2021)
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.72 WAIVER OF RECOVERY OF OVERPAYMENTS UNDER LOST WAGES ASSISTANCE (LWA) PROGRAM
Section 2835.72 Waiver of Recovery of Overpayments Under
Lost Wages Assistance (LWA) Program
a) The
Department will waive recovery of any overpayment under the Lost Wages
Assistance (LWA) Program paid to a recipient if the Department determines that:
1) The
overpayment was without fault on the part of the recipient; and
2) Recovery would be
contrary to equity and good conscience.
b) For
purposes of subsection (a), recovery of the overpayment will be considered to
be against equity and good conscience if:
1) It
would cause financial hardship to the person from whom it is sought;
2) Regardless
of the recipient's financial circumstances, the recipient can show that, based
on the overpayment or notice that a benefit payment would be made, the
recipient has:
A) relinquished a valuable
right; or
B) changed positions for
the worse; or
3) Recovery would be
unconscionable under the circumstances.
c) For
purposes of this Section, pursuant to guidance provided by the Federal
Emergency Management Agency (FEMA) which oversees the LWA program, if the
Department has previously recovered LWA overpayment funds from a recipient and
that recipient is granted a waiver pursuant to this Section, then LWA funds
shall not be used to refund that recipient those recovered monies.
Additionally, there is no language authorizing the payment of such refunds in
the enabling laws of unemployment insurance programs, including, but not
limited to, the Illinois Unemployment Insurance Act [820 ILCS 405] and the
CARES Act [P.L. 116-136].
d) When
determining requests for a waiver of recovery of an overpayment of LWA benefits
paid in conjunction with benefits paid under PUA, PEUC, or the first week of
benefits funded by the federal government under any State or federal
unemployment program:
1) If a
claimant requests a waiver of recovery of an overpayment under PUA, PEUC, or
the first week of federally-funded benefits under any State or federal
unemployment program (see Section 2835.70), it will also be considered to be a
request to waive recovery of an LWA overpayment if the overpayment occurred
while the LWA program supplemented the claimant's weekly benefit amount and the
payment under LWA has also been determined to be an overpayment. The Department’s determination or decision regarding the
request for a waiver will list the findings for allowing or denying waiver of
recovery of multiple overpayments separately according to the program under
which the benefits were paid. The Department’s determination or decision
will include the reason for the determination or decision, and when waiver is
allowed, the time period of the waiver, and the amount waived.
2) EXAMPLE:
A claimant files a request and provides supporting information for a waiver of
recovery of a PUA overpayment covering the period from the week beginning
August 16, 2020 through the week ending September 12, 2020. In this case, the
LWA program provided a $300 supplement to the claimant's weekly benefit amount
for the weeks between August 16, 2020 and September 5, 2020, and the LWA
supplements have been determined to be an overpayment. The adjudicator
determines that the claimant's request meets the criteria for a waiver of
recovery of both PUA and LWA overpayments, and states in the determination:
A) the reasons for the
waivers;
B) that a
waiver of recovery of the PUA overpayment is granted for the period from the
week beginning August 16, 2020 through the week ending September 12, 2020;
C) that a
waiver of recovery of the LWA overpayment is granted for the period from the
week beginning August 16, 2020 through the week ending September 5, 2020; and
D) the amount waived for
each program.
3) The standard for allowing the request for waiver
of recovery of the overpayment attributable to payments under PUA, PEUC, or the
first week of benefits funded by the federal government under any State or
federal unemployment program is set forth in Section 2835.70.
4) The
standard for allowing the request for waiver of recovery of the overpayment
attributable to payments under LWA is set forth in this Section.
5) The provisions of Section 2835.70(g) relating to
an adjudicator’s determination on a claimant’s request for a waiver of recovery
of an overpayment under PUA, FPUC, PEUC, MEUC, or the first week of benefits
funded by the federal government under any State or federal unemployment
program also apply to a request for waiver of recovery of an overpayment of LWA
benefits made in conjunction with benefits paid under one or more of those
programs.
6) The
provisions of Section 2835.70(h) relating to the reconsideration and appeal of
an adjudicator’s determination on a claimant’s request for a waiver of recovery
of an overpayment under PUA, FPUC, PEUC, MEUC, or the first week of benefits
funded by the federal government under any State or federal unemployment
program also apply to a request for waiver of recovery of an overpayment of LWA
benefits made in conjunction with benefits paid under one or more of those
programs.
e) When determining requests for a waiver of recovery
of an overpayment of LWA benefits paid in conjunction with the payment of non-federally funded regular or extended
unemployment insurance benefits:
1) If a
claimant requests a waiver of recovery of an overpayment of non-federally
funded regular or extended unemployment benefits (see Section 2835.67), it will
also be considered to be a request to waive recovery of an LWA overpayment if
the overpayment occurred while the LWA program supplemented the claimant's
weekly benefit amount and the payment under LWA has also been determined to be
an overpayment. The Department’s determination or decision regarding the
request for a waiver will list the findings for allowing or denying waiver of
recovery of multiple overpayments separately according to the program under
which the benefits were paid. The Department’s determination or decision will
include the reason for the determination or decision, and when waiver is
allowed, the time period of the waiver, and the amount waived.
2) EXAMPLE:
A claimant files a request and provides supporting information for a waiver of
recovery of a regular unemployment insurance overpayment covering the period
from the week beginning August 16, 2020 through the week ending September 12,
2020. In this case, the LWA program provided a $300 supplement to the
claimant's weekly benefit amount for the weeks between August 16, 2020 and
September 5, 2020, and the LWA supplements have been determined to be an
overpayment. The adjudicator determines that the claimant's request meets the
criteria for a waiver of recovery of both overpayments, and states in the
determination:
A) the reasons for the
waivers;
B) that a
waiver of recovery of the regular unemployment insurance overpayment is granted
for the period from the week beginning August 16, 2020 through the week ending
September 12, 2020;
C) that a
waiver of recovery of the LWA overpayment is granted for the period from the
week beginning August 16, 2020 through the week ending September 5, 2020; and
D) the amount waived for
each program.
3) The
standard for allowing the request for waiver of recovery of the overpayment
attributable to payments of non-federally funded regular or extended
unemployment insurance benefits is set forth in Section 2835.67.
4) The
standard for allowing the request for waiver of recovery of the overpayment
attributable to payments under LWA is set forth in this Section.
5) The
provisions of Section 2835.67(h) relating to an adjudicator’s determination on
a claimant’s request for a waiver of recovery of an overpayment of
non-federally funded regular or extended unemployment insurance benefits also
apply to a request for waiver of recovery of an overpayment of LWA benefits
made in conjunction with benefits paid under one or more of those programs.
6) The
provisions of Section 2835.67(i) relating to the reconsideration and appeal of
an adjudicator’s determination on a claimant’s request for a waiver of recovery
of an overpayment of non-federally funded regular or extended unemployment
insurance benefits also apply to a request for waiver of recovery of an
overpayment of LWA benefits made in conjunction with benefits paid under one or
more of those programs.
(Source: Added at 46 Ill. Reg. 14206,
effective July 29, 2022)
SUBPART B: DETECTION OF OVERPAYMENTS
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.100 CROSS-MATCHING
Section
2835.100 Cross-Matching
The
Department regularly matches its benefit payments records against the Illinois Directory of New Hires and the Department's own wage record system. Where the
cross-matches suggest the possibility that a claimant has worked during the
period for which he or she was claiming benefits, the Department will
investigate further.
Example:
An individual receives regular State benefits for the week beginning January 18, 2009, continuing through April
18, 2009. In certifying to his/her continued eligibility for benefits for
those weeks, the individual indicates he/she did not work during any of those
weeks. A December 2009 cross-match against the Department's wage records for
the first quarter of 2009 indicates the individual worked and was paid wages
during that quarter. The follow-up investigation results in a determination,
dated December 14, 2009, that the individual fraudulently claimed benefits for
the week beginning January 18, 2009 through April
18, 2009, a total of 13 weeks, and the determination becomes legally final.
The individual files a new claim for benefits, effective January
24, 2010, without yet having repaid any of the benefits he/she fraudulently
obtained. The individual will not receive any benefits until he/she repays the
entire amount fraudulently received. After repaying the benefits, the
individual will remain ineligible for benefits under Section 901 of the Act
[820 ILCS 405/901] until he/she has served 26 "penalty weeks" or December 18, 2011, whichever occurs first. A penalty week is a week in which the claimant
is otherwise eligible to receive benefits but is precluded from doing so
because of a fraud determination. Six penalty weeks are assessed for the first
week for which a claimant fraudulently obtained benefits, and two penalty weeks
are assessed for each week thereafter for which the claimant fraudulently
obtained benefits, up to a maximum of 26 penalty weeks. There is no durational
limit on an individual's liability to repay fraudulently obtained benefits. The
individual is also subject to criminal prosecution under the State Benefits
Fraud Act [720 ILCS 5/17-6] for the fraudulent receipt of benefits. A
conviction for State benefits fraud can result in imprisonment for generally up
to five years and a fine of generally up to $25,000. The individual is also
subject to a civil lawsuit for recovery of the overpayments.
(Source:
Added at 34 Ill. Reg. 8515, effective June 16, 2010)
Section 2835.TABLE A Recoupment Matrix
| TITLE 56: LABOR AND EMPLOYMENT
CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY
SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES
PART 2835
RECOVERY OF BENEFITS
SECTION 2835.TABLE A RECOUPMENT MATRIX
Section 2835.TABLE A Recoupment
Matrix
|
Overpaid Under The Programs And Subprograms Listed
Below
|
|
% Of Benefits Recoupable From Benefits Presently
Payable Under Programs And Subprograms
|
|
|
|
|
STATE
|
UCX/
UCFE
|
STATE/
UCX/UCFE
|
FPUC
|
TRA
|
PUA
|
|
|
PROGRAM/
SUBPROGRAM
|
TYPE
OF OVER-PAYMENT
|
REG
|
EB
|
REG/EB
|
PEUC
|
|
|
|
LENGTH
OF RECOUPMENT PERIOD
|
|
|
STATE/
REG/EB
|
NONFRAUD
Sec. 900A2
|
25
|
25
|
25
|
25
|
25
|
25
|
25
|
5 Years from Determination
Date
|
|
|
STATE/
REG/EB
|
FRAUD
|
100
|
100
|
100
|
50
|
50
|
100
|
50
|
Indefinite
|
|
|
UCX/UCFE/
REG/EB
|
NONFRAUD
Sec. 900A2
|
25
|
25
|
25
|
25
|
25
|
25
|
25
|
5 Years from Determination
Date
|
|
|
UCX/UCFE/
REG/EB
|
FRAUD
|
100
|
100
|
100
|
50
|
50
|
100
|
50
|
2 Years from
Determination
Date
|
|
|
STATE/
UCX/UCFE/
PEUC
|
FRAUD
|
100
|
100
|
100
|
50
|
50
|
100
|
50
|
3 Years from Payment Date
|
|
|
STATE/
UCX/UCFE/
PEUC
|
NONFRAUD
|
25
|
25
|
25
|
25
|
50
|
25
|
50
|
3 Years from Payment Date
|
|
|
FPUC
|
NONFRAUD
|
25
|
25
|
25
|
25
|
50
|
25
|
50
|
3 Years from Payment Date
|
|
|
FPUC
|
FRAUD
|
50
|
50
|
50
|
50
|
50
|
50
|
50
|
3 Years from Payment Date
|
|
|
TRA
|
FRAUD
|
50
|
50
|
50
|
50
|
0
|
0-I
|
50
|
Indefinite
|
|
|
TRA
|
NONFRAUD
|
25
|
25
|
25
|
25
|
0
|
25
|
25
|
5 Years from Determination
Date
|
|
|
PUA
|
NONFRAUD
|
25
|
25
|
25
|
50
|
50
|
25
|
25
|
5 Years from Determination
Date
|
|
|
PUA
|
FRAUD
|
100
|
100
|
100
|
50
|
50
|
100
|
**
|
5 Years from Determination
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY
TO RECOUPMENT MATRIX
|
25
|
=
|
25% of Weekly Benefit Amount
may be withheld for recoupment.
|
|
50
|
=
|
50% of Weekly Benefit Amount
may be withheld for recoupment.
|
|
100
|
=
|
100% of benefits payable may
be withheld for recoupment.
|
|
0-I
|
=
|
Recoupment is not allowable:
|
|
|
|
a)
|
If the week claimed ends prior
to fraud determination date, claimant receives all benefits payable for the
week;
|
|
|
|
b)
|
If the week claimed ends on or
after fraud determination date, claimant is ineligible to receive any
benefits for the week.
|
|
**
|
=
|
a)
|
If the fraud occurred in the initial application for PUA
benefits, the claimant is ineligible for any PUA benefits.
|
|
|
|
b)
|
If the fraud occurred in connection with a claim for a
week of PUA benefits, the claimant is ineligible for that week and the next
two weeks of PUA benefits.
|
|
UCX
|
=
|
5 USC 8521 et seq.,
Unemployment Compensation for Ex-Servicemen.
|
|
UCFE
|
=
|
5 USC 8501 et seq.,
Unemployment Compensation for Federal Employees.
|
|
EB
|
=
|
820 ILCS 405/409, Extended
Benefits.
|
|
Sec. 900A2
|
=
|
820 ILCS 405/900A2.
|
|
PEUC
|
=
|
Coronavirus Aid, Relief, and Economic
Security (CARES) Act of 2020, Section 2107, Pandemic Emergency Unemployment
Compensation, Public Law 116-136.
|
|
FPUC
|
=
|
Coronavirus Aid, Relief, and
Economic Security (CARES) Act of 2020, Section 2104, Federal Pandemic
Unemployment Compensation, Public Law 116-136.
|
|
PUA
|
=
|
Coronavirus Aid, Relief, and
Economic Security (CARES) Act of 2020, Section 2102, Pandemic Unemployment
Assistance, Public Law 116-136.
|
|
TRA
|
=
|
Trade Act of 1974, as amended,
19 USC 2271-2322.
|
(Source: Amended at 44 Ill.
Reg. 14684, effective August 27, 2020)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
