Official Site of The State of New Jersey
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Overpayments & Refunds
If you receive any unemployment benefits to which you are not entitled, you will be required to repay those benefits, otherwise known as “overpayments.” A determination notice will be sent to you explaining the reason for your overpayment. Also, a notice will be sent to you stating the amount you were overpaid.
If you receive an overpayment notice, there are a few options:
- Make a payment(s) using our online system. (Credit cards and e-checks are accepted; some fees may apply. One-time and recurring payments are also available.) You can also contact the Benefit Payment Control Office at 609-376-5945 to set up a payment plan, or mail a check to: Bureau of Benefit Payment Control, Refund Processing Section, PO Box 951, Trenton NJ 08625-0951.
- Appeal your determination by following the instructions on the bottom of the notice of overpayment (Form B189 - instructions are also here). Appeals are time-sensitive.
- Request to waive overpayment. Waiver requests will be evaluated on a case-by-case basis. (Rules and application processes differ depending on whether the overpayments were from federal or state benefits).
Under the CARES Act, NJ may waive CARES Act overpayments (PUA/PEUC/FPUC) if you meet the following two conditions.
1) Overpayment was due to no fault of your own
- You did not falsify or withhold information that led to overpayment
And
2) Repayment would be contrary to equity and good conscience
- It would cause financial hardship
- You have already made financial decisions based on these payments
- Repayment would be unfair or unconscionable
To request a waiver:
- Request a CARES Act-related overpayment waiver when you log in to your account to check your claim status.
- You will receive an email within 7 days with a link to the application after you make your request.
- Fill out the application form and submit your answers.
You will receive a determination by email. If you don't agree with the determination, you can appeal by following the instructions in that email.
Overpayments that are not covered by the CARES Act (general Unemployment Insurance and/or extended benefits) may be waived if you meet a combination of the following two conditions:
1) Overpayment was due to no fault of your own
- You did not falsify or withhold information that led to overpayment
And
2) You (claimant) must meet at least one of the following criteria:
- Recovery of funds would be contrary to the principle of equity (the terms of a reasonable repayment schedule would create economic hardship)
- Provide you and your household’s proof of income and expenses for the past 12 months (tax returns, pay stubs, bank statements, bills, etc.), and an estimate of you and your household’s income and expenses for the next 12 months
- You are permanently disabled and no longer able to work
- Provide a completed Disability Certification or proof of Social Security Disability eligibility
- NOTE: In addition, you may be required to undergo an impartial physical examination by a legally-licensed physician at the expense of New Jersey.
- Claimant is deceased
- Please provide a death certificate
To request a waiver:
- Gather specific proof under your criteria for section 2.
- Complete both parts of the BPC-9 (Request for Waiver of Unemployment Overpayment) form.
- Mail form and proof to the following address:
New Jersey Department of Labor and Workforce Development
Division of Unemployment Insurance
Bureau of Benefit Payment Control
Refund Processing Section
PO Box 951
Trenton, NJ 08625-0951
Claimants will receive a determination on their state overpayment waiver request by mail. If you disagree with the decision, you can appeal. Learn more here.
Only claimants (or their representatives) may request a waiver of the overpayment.
When you receive your overpayment determination, it will tell you how your overpayment has been classified.
There are three types of overpayment classifications: fraud, non-fraud, and agency error.
- Fraud: Fraudulent overpayments are subject to fines and interest. If your overpayment is currently classified as fraud, it cannot be reclassified as an agency error.
This type of overpayment is subject to collections by any means necessary (including interception of tax refunds and offsetting future unemployment benefits).
NOTICE BPC189A; BPC-189.2; BPC-189.2FP
Example: You returned to work but continued to certify for benefits and did not report your wages. - Non-fraud: Non-fraudulent overpayments are subject to interest if a Certificate of Debt has been filed.
This type of overpayment is subject to collections by any means necessary (including interception of tax refunds and offsetting future unemployment benefits).
NOTICE BPC189; BPC-189.3
Example: You accidentally certified for benefits for an incorrect week. - Agency error: An agency error overpayment is an overpayment that is the sole result of an error made by the Division. If an agency error occurs, you are still required to pay back the entire amount of the overpayment. NJDOL will deduct 50% of your weekly benefit rate for any future NJ unemployment benefits you receive to pay off this overpayment. NJDOL will not deduct money from your tax refund to repay the overpayment.
NOTICE BPC-189E
Example: NJDOL automatically filed a new claim for you when you didn't meet the minimum earnings requirement.
Requesting a classification review:
To request a review of your overpayment classification, contact us using our online form and select "Overpayment Classification Review" from the drop-down list. In the text box that appears after you select that option, explain why you think your overpayment classification was incorrect. After we review your information and process your request, we will mail you a notification of the outcome of our review. The decision of the overpayment classification review is final and not appealable, so be sure that your submission for reclassification review contains sufficient detail and explanation.
