341.415 Recovery and recoupment limitations.
888 words·~4 min read·
/ky/chapter-341/341-415A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Any person who has received any sum as benefits under this chapter or
any other state's unemployment insurance statutes or any United States
Department of Labor unemployment insurance benefit program, providing
the secretary has signed a reciprocal agreement with such other state or
the United States Department of Labor as provided in KRS 341.145, while
any condition for the receipt of such benefits was not fulfilled in his case,
or while he was disqualified from receiving benefits, or if he has received
benefits in weeks for which he later receives a back pay award, shall, in
the discretion of the secretary, either have such sum deducted from any
future benefits payable to him under this chapter or repay the Office of
Unemployment Insurance for the fund a sum equal to the amount so
received by him.
(b)If after due notice, the recipient of such sum fails to remit or arrange for
remittance of the sum, the sum may be collected in the manner provided
in KRS 341.300(2) for collection of past-due contributions and any sums
so collected shall be credited to the pooled account or the appropriate
reimbursing employer account.
(c)The appropriate reimbursing employer account shall not receive credit for
sums collected under this subsection or KRS 341.550(2)(b) if a
determination has been made that an improper benefit payment
established after October 21, 2013, was due to the reimbursing employer,
or an agent of the employer, in accordance with the provisions of KRS
341.530(4)(a) and (b). The sums collected shall be credited to the pooled
account.
(d)If any benefit was paid as a result of office error as defined by
administrative regulation, there shall be no recoupment or recovery of an
improperly paid benefit, except by deduction from any future benefits
payable to him under this chapter. For purposes of this section,
overpayments as a result of a reversal of entitlement to benefits in the
appeal or review process shall not be construed to be the result of office
error.
(2)At or after the commencement of an action under subsection
(1)of this section,
attachment may be had against property of the recipient of improperly paid
benefits in the manner provided in KRS 341.300(3).
(3)A lien on a parity with state, county, and municipal ad valorem tax liens, is
hereby created in favor of the office upon all property of any recipient of
improperly paid benefits. This lien shall be for a sum equal to the amount of the
overpayment finally determined and shall continue until the amount of the
overpayment plus any subsequent assessment of additional improperly paid
benefits, penalty, interest, and fees are fully paid. The lien shall commence
from such time as the recipient has exhausted or abandoned the appeal
procedure set forth in this chapter and the amount of the overpayment is finally
fixed. A notice of lien may be filed in the same manner as that provided for in
KRS 341.310.
(4)Any amount paid to a person as benefits, which he has been found liable to
repay or to have deducted from future benefits under subsections (1), (2), and
(3)of this section, which has neither been repaid nor so deducted within a
period of five
(5)years following the last day of the benefit year within which it
was paid, may be deemed to be uncollectible and shall be permanently
charged to the pooled account, except that if such payment was made by
reason of fraudulent representations, no future benefits shall be paid such
person within a period of ten
(10)years of the last day of the benefit year within
which such payments were made at which time these amounts may be
declared uncollectible. Nothing in this subsection shall be deemed to affect
collection of improperly paid benefits pursuant to a judgment or other legal
remedy.
(5)In the event benefits have been paid as a result of a false statement,
misrepresentation, or concealment of material information by a recipient of
benefits and have not been repaid by the recipient within one
(1)calendar year
from the date of the first notice, interest at the rate of one and five-tenths
percent (1.5%) per month or any part thereof, shall be imposed on and added
to the unpaid balance each successive month, providing due notice has been
given to the recipient. Such interest shall be paid into the unemployment
compensation administration account.
(6)A recipient of benefits paid as a result of a false statement, misrepresentation,
or concealment of material information by the recipient shall be assessed a
fifteen percent (15%) penalty of the amount of improperly paid benefits. The
penalty under this subsection shall be collected in the same manner as
improperly paid benefits in this section and paid into the unemployment trust
fund.
(7)The deduction from future benefits specified in subsection
(1)of this section
shall be limited to twenty-five percent (25%) of the benefit amount otherwise
payable under this chapter unless the overpayment resulted from a backpay
award, false statement, misrepresentation, or concealment of material
information by a recipient of benefits. In these instances, the rate of deduction
shall be one hundred percent (100%). The rate of deduction from benefits
payable by another state or the United States of America shall be determined
by the applicable state or federal statute.