2017 Tennessee Code
Title 50 - Employer and Employee
Chapter 7 - Tennessee Employment Security Law
Part 7 - Enforcement
§ 50-7-715. Repayment of unemployment benefits as a result of a violation of this chapter -- Interest on amount due -- Appeal does not toll interest -- Application of moneys received.

Universal Citation: TN Code § 50-7-715 (2017)
  • (a) Any person who has received unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose any material fact, or by making a false statement or false representation without a good faith belief as to the correctness of the statement or representation, after a determination by the commissioner that such a violation has occurred, shall be required to repay the amount of benefits received.
  • (b)
    • (1) The commissioner shall assess a penalty equal to fifteen percent (15%) of the overpaid benefits as described in subsection (a), to comply with the requirements of 42 U.S.C. § 503(a)(11). Moneys collected by this penalty shall be deposited into the unemployment compensation fund as provided in § 50-7-501.
    • (2)
      • (A) For overpayments made prior to July 1, 2016, the commissioner shall further assess a penalty equal to seven and one-half percent (7.5%) of the overpaid benefits described in subsection (a).
      • (B) For overpayments made on or after July 1, 2016, the commissioner shall further assess a penalty equal to fifteen percent (15%) for the first instance of overpaid benefits described in subsection (a). "First instance" means all consecutive claim weeks of unemployment benefits paid within a benefit year to any person when such benefits were received by knowingly misrepresenting, misstating, or failing to disclose any material fact. The commissioner shall further assess a penalty equal to thirty-five percent (35%) for the second and each subsequent instance of overpaid benefits as described in subsection (a).
      • (C) Monies collected by penalties set out in this subdivision (b)(2) shall be used to defray the costs of deterring, detecting, or collecting overpayments. The penalty provided in this subdivision (b)(2) is in addition to the penalty provided in subdivision (b)(1).
  • (c)
    • (1) In addition to the requirements of subsections (a) and (b), the commissioner shall assess interest at a rate of no more than one and one-half percent (1.5%) per month on the total amount due that remains unpaid for a period of thirty (30) or more calendar days after the date on which the commissioner sends notice of the commissioner's determination that a violation has occurred to the last known address of the claimant. For purposes of this subdivision (c)(1), "total amount due" includes the unemployment benefits received pursuant to subsection (a) and the penalties provided for in subsection (b).
    • (2) A pending appeal of the order of the commissioner shall not suspend the assessment of interest on unemployment benefits obtained in violation of this chapter.
  • (d) Moneys received by the department in repayment of unemployment benefits and payment of penalties and interest pursuant to this section shall first be applied to the unemployment benefits received, then to any penalties due, and then to any interest due.
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