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341.415 Recovery and recoupment limitations.
(1)
(2)
(3)
(4)
Any person who has received any sum as benefits under this chapter or any other
state's unemployment insurance statutes or any United States Department of Labor
unemployment insurance benefit program, providing the secretary has signed a
reciprocal agreement with such other state or the United States Department of Labor
as provided in KRS 341.145, while any condition for the receipt of such benefits
was not fulfilled in his case, or while he was disqualified from receiving benefits, or
if he has received benefits in weeks for which he later receives a back pay award,
shall, in the discretion of the secretary, either have such sum deducted from any
future benefits payable to him under this chapter or repay the Office of Employment
and Training, Department of Workforce Investment, for the fund a sum equal to the
amount so received by him. If after due notice, the recipient of such sum fails to
remit or arrange for remittance of the sum, the sum may be collected in the manner
provided in KRS 341.300(2) for collection of past-due contributions and any sums
so collected shall be credited to the pooled account or the appropriate reimbursing
employer account. However, if the benefit was paid as a result of office error as
defined by administrative regulation, there shall be no recoupment or recovery of an
improperly paid benefit, except by deduction from any future benefits payable to
him under this chapter. For purposes of this section, overpayments as a result of a
reversal of entitlement to benefits in the appeal or review process shall not be
construed to be the result of office error.
At or after the commencement of an action under subsection (1) of this section,
attachment may be had against property of the recipient of improperly paid benefits
in the manner provided in KRS 341.300(3).
A lien on a parity with state, county, and municipal ad valorem tax liens, is hereby
created in favor of the office upon all property of any recipient of improperly paid
benefits. This lien shall be for a sum equal to the amount of the overpayment finally
determined and shall continue until the amount of the overpayment plus any
subsequent assessment of additional improperly paid benefits, interest, and fees are
fully paid. The lien shall commence from such time as the recipient has exhausted
or abandoned the appeal procedure set forth in this chapter and the amount of the
overpayment is finally fixed. A notice of lien may be filed in the same manner as
that provided for in KRS 341.310.
Any amount paid to a person as benefits, which he has been found liable to repay or
to have deducted from future benefits under subsections (1), (2), and (3) of this
section, which has neither been repaid nor so deducted within a period of five (5)
years following the last day of the benefit year within which it was paid, may be
deemed to be uncollectible and shall be permanently charged to the pooled account,
except that if such payment was made by reason of fraudulent representations, no
future benefits shall be paid such person within a period of ten (10) years of the last
day of the benefit year within which such payments were made at which time these
amounts may be declared uncollectible. Nothing in this subsection shall be deemed
to affect collection of improperly paid benefits pursuant to a judgment or other legal
remedy.
(5)
(6)
In the event benefits have been paid as a result of false statement, misrepresentation,
or concealment of material information by a recipient of benefits and have not been
repaid by the recipient within one (1) calendar year from the date of the first notice,
interest at the rate of one and five-tenths percent (1.5%) per month or any part
thereof, shall be imposed on and added to the unpaid balance each successive
month, providing due notice has been given to the recipient. Such interest shall be
paid into the unemployment compensation administration account.
The deduction from future benefits specified in subsection (1) of this section shall
be limited to twenty-five percent (25%) of the benefit amount otherwise payable
under this chapter unless the overpayment resulted from a backpay award, false
statement, misrepresentation, or concealment of material information by a recipient
of benefits. In these instances, the rate of deduction shall be one hundred percent
(100%). The rate of deduction from benefits payable by another state or the United
States of America shall be determined by the applicable state or federal statute.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 211, sec. 150, effective July 12, 2006. -Amended 1998 Ky. Acts ch. 167, sec. 6, effective July 15, 1998. -- Amended 1996
Ky. Acts ch. 266, sec. 14, effective July 15, 1996. -- Amended 1992 Ky. Acts
ch. 133, sec. 3, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 106, sec. 1,
effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 261, sec. 8, effective July 15,
1982. -- Amended 1980 Ky. Acts ch. 385, sec. 9, effective July 15, 1980. -- Amended
1978 Ky. Acts ch. 389, sec. 26, effective July 1, 1978. -- Amended 1974 Ky. Acts
ch. 74, Art. VI, sec. 107(21),(23). -- Created 1950 Ky. Acts ch. 206, sec. 1.
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