Department of Labor and Regulation

Unemployment Insurance

Overpayments - Collections

Repayment of all Unemployment Insurance (UI) benefit overpayments is required by law regardless of the reason for the overpayment. For information on avoiding being overpaid UI benefits, visit our Accurate and Honest Reporting page. Or refer to your Facts about UI Benefits guide. Visit the UI Benefits portion of this website for additional information.

If you receive notice that you are overpaid UI benefits, do the following:

Read the notice carefully. If you have any questions, call the Benefit Payment Control Unit at 605.626.7649.

Note your appeal and waiver rights. Appeal on time if you disagree with the overpayment. Visit the UI Benefits Filing Appeals page for information about the appeals process.

Repay the overpayment quickly in order to reduce the cost to you.

The Benefit Payment Control Unit works closely with overpaid claimants to set up repayment agreements. Download the Repayment Agreement form (in Adobe .pdf format*), complete and return it to us at the address below. Or call us at 605.626.7649 to set up a repayment agreement. You will receive monthly bills until the overpayment is repaid. Your good faith effort to repay the overpayment will also ensure that civil action is not taken. You may also write to us at the following address:

Unemployment Insurance Division - Benefit Payment Control Unit
South Dakota Department of Labor and Regulation
P.O. Box 4730
Aberdeen, SD 57402-4730
Fax: 605.626.2216

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Penalties

If you commit fraud to secure or increase benefits a penalty of 50 percent of the amount of benefits obtained by fraud is applied for the first offense and a 100 percent penalty is applied for each subsequent offense. The department shall also impose four weeks of administrative penalty for each week that an individual willfully or fraudulently misrepresents a fact to secure or increase benefits. There is no expiration of this penalty and benefits will be denied during this penalty period.

Interest

If you are overpaid and you were at fault in the overpayment, interest will begin accumulating immediately. If you are not at fault, interest will begin accumulating after six months. Repaying the overpayment quickly reduces your interest cost and preserves your future UI benefits. Accumulated interest cannot be deducted from your future benefits. Interest will continue to accrue until the principal balance is paid.

Collections

Please note: If you had payments such as child support or federal income tax withheld from your UI benefits, you must repay the full amount, including the amounts withheld.

If you make no payment on your overpayment, the Benefit Payment Control Unit may begin collection action.

You will receive a collection letter. You should make a payment within 15 days and set up a reasonable monthly payment in order to prevent further collection action.

Civil action may be taken against you.

A lien may be filed against your real and/or personal property.

A distress warrant may be sent to the county sheriff allowing the seizure of your belongings.

A judgment may be granted to the Department of Labor and Regulation. Once the judgement is granted, your wages may be garnished.

Call the Benefit Payment Control Unit at 605.626.7649 for information on repaying your overpayment before any civil action is taken.

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*Opening and printing Adobe .pdf files requires Adobe Acrobat Reader. Click here as needed to download the free Adobe Acrobat Reader.


Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184