Overpayments and Recovery

Some of the common causes of an overpayment are: 

• An IWD decision that reverses a previous decision to allow benefits to a claimant (typically a result of a fact-finding or more information being collected).   
• When a claimant and/or employer fails to disclose that the claimant continued to be paid after a job separation (received wages, holiday, vacation pay, severance pay or other deductible pay).

• When a claimant fails to accurately report their earnings and hours worked while filing for unemployment benefits.  

• When a claimant’s weekly and/or maximum benefit amount changes (this is called a monetary redetermination) because the wage information provided on the initial claim was incorrect  
• When the claimant is disqualified from receiving UI benefits due a finding that he/she was responsible for his or her job separation.  
• When a claimant fails to notify IWD that he or she does not meet the eligibility requirements.  

If it is determined that you received more unemployment benefits than you were owed, you will receive a letter or notification that includes the dollar amount you owe and the time frame that the overpayment covers. This notice also will explain the eligibility rules for each unemployment program and how the overpayment was found.   

Iif an overpayment amount changes because of an appeal or additional information received, another letter with a revised amount will be sent.  If you have questions regarding the dollar amount or the weeks that are owed, please contact IWD customer service at 1-866-239-0843.

According to the Iowa Code, you are guilty of “fraudulent practice” if you deliberately misrepresent information to receive unemployment benefits that you knew you were not entitled to receive.  In certain cases, where deliberate misrepresentation has occurred, IWD may turn the case over to the office of the County Attorney where you live.  The County Attorney then will decide on a case-by-case basis whether felony charges will be filed.  Overpayments caused by deliberate misrepresentation (fraud) include a 15 percent penalty. 

If you are found to have received an overpayment, you will receive monthly billing notices and other collection letters regarding the amount you owe. Should you become eligible for future unemployment benefits, 100 percent of each weekly benefit payment may be applied to the non-fraud overpayment balance until it is paid in full. 

Individuals with a fraud overpayment balance due must pay the full balance including penalty, interest, and lien fees to be eligible for future benefits.  

Collection activities may include, but are not limited to:  

• State and/or Federal income tax refund interception.  
• The Iowa Department of Revenue will check your Social Security Number against a list of individuals who have an overpayment debt payable to IWD. If you and your spouse file taxes jointly, your refund may be intercepted to pay the overpayment debt.  
• Interception of lottery winnings.  
• Vendor payment intercepts.  
• Wage garnishment actions.  
• UI benefit payment offsets.  
• Voluntary repayment plans.