Unemployment overpayments can sometimes be waived, but approval depends on specific state rules and the reason the overpayment occurred.
Many people assume that once an overpayment notice arrives, repayment is unavoidable. In reality, some states allow waivers when repayment would cause hardship or when the overpayment was not the claimant’s fault.
What an Overpayment Waiver Is
An overpayment waiver is a request asking the unemployment agency to forgive some or all of the overpayment balance.
A waiver does not mean the overpayment never existed. It means the agency agrees that repayment should not be required under certain conditions.
When Waivers May Be Approved
Waivers are more commonly approved when:
The overpayment was caused by agency error
The claimant reported information accurately
Repayment would cause financial hardship
Some states require both “no fault” and hardship. Others use different criteria.
When Waivers Are Usually Denied
Waivers are less likely when:
False information was knowingly provided
Earnings were not reported accurately
The overpayment resulted from disqualification reasons
Each state applies its own standards, so notices and instructions matter.
What to Do Before Requesting a Waiver
Before submitting a waiver request, it helps to confirm:
Why the overpayment occurred
Whether appeal deadlines are still open
Whether a repayment plan is required while the waiver is reviewed
In some cases, appealing the overpayment determination may be the better first step.
Related Resources
- What Triggers an Unemployment Overpayment
- Overpayment Repayment Plan Explained
- What Triggers an Unemployment Audit or Investigation
If you received an overpayment notice and are unsure whether a waiver may apply in your situation, you can request help reviewing your options here:
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Disclaimer:
This content is for general informational purposes only and does not constitute legal or financial advice. Public benefit programs, including unemployment insurance, are administered at the state level and rules, procedures, and timelines vary. Public Benefit Guide is an independent informational website and is not affiliated with any government agency. For guidance specific to your situation, consider contacting your state unemployment agency or a qualified professional.