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)

 

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)

 

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)

 

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)

 

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.

 

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.

 

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.

 

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)

 

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.

 

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.

 

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)

 

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)

 

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.

 

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.

 

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.

 

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)

 

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)

 

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

 

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

 

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)