Dealing With Unemployment Overpayment
I do not handle unemployment claims or represent clients in unemployment-related matters.
More often than not, individuals do not hire attorneys to represent them with regard to unemployment compensation because the economics involved make such representation difficult. The cost of retaining counsel for such a matter will often exceed the value of the benefits involved.
We are frequently asked questions involving overpayment of unemployment from the Texas Workforce Commission (TWC):
What is an overpayment?
Why do I have an overpayment?
Must I repay an overpayment?
Why should I repay an overpayment?
Do overpayments elsewhere affect me?
What is an overpayment?
An overpayment happens when the Texas Workforce Commission (TWC) pays you unemployment benefits that you were not eligible to receive. You must repay benefits that you are not eligible to receive.
Why do I have an overpayment?
The TWC will mail you a Decision on Payment of Unemployment Benefits explaining why you have an overpayment, what weeks were overpaid, and the amount you must repay. Examples of what can cause an overpayment include:
Not reporting earnings or reporting the incorrect earnings amount when you request payment.
Giving false information about your job separation or work search.
Having your eligibility for benefits reversed due to an appeals hearing after receiving benefits.
Must I repay an overpayment?
Yes. You must repay all of the overpayment before the Texas Workforce Commission can pay you any additional benefits. If you are requesting benefits, continue to submit bi-weekly payment requests. The TWC will apply each eligible payment toward reducing your overpayment. Don't stop submitting payment requests because the credit will only be applied if you continue requesting payment normally.
If you are no longer requesting benefits and cannot repay the entire amount at once, you can call the TWC at (512) 936-3338 and they will usually work with you to set up a repayment plan.
Why should I repay an overpayment?
You should repay an overpayment because:
The overpayment stays on your claim record until repaid in full.
The TWC will keep any future benefits until your overpayment is repaid.
While it is not done in every case, the TWC has the authority to take legal action against you to recover the money, including suing you in a civil court.
Do overpayments from other states affect me?
Yes they can. If you have an overpayment in another state, the other state may ask the TWC to send your benefits to that state until the overpayment is paid. If you have an overpayment in Texas and receive benefits from another state, the Texas Workforce Commission can ask that state to recover the money for the TWC.
Learn More: Texas Unemployment Guide
