C.F.R. » Title 20 » CHAPTER V—EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR › PART 625—DISASTER UNEMPLOYMENT ASSISTANCE

20 C.F.R. § 625.14

Overpayments; disqualification for fraud

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(a) Finding and repayment. If the State agency of the applicable State finds that an individual has received a payment of DUA to which the individual was not entitled under the Act and this part, whether or not the payment was due to the individual's fault or misrepresentation, the individual shall be liable to repay to the applicable State the total sum of the payment to which the individual was not entitled, and the State agency shall take all reasonable measures authorized under any State law or Federal law to recover for the account of the United States the total sum of the payment to which the individual was not entitled.

(b) Recovery by offset. (1) The State agency shall recover, insofar as is possible, the amount of any outstanding overpayment of DUA made to the individual by the State, by deductions from any DUA payable to the individual under the Act and this part, or from any compensation payable to the individual under any Federal unemployment compensation law administered by the State agency, or from any assistance or allowance payable to the individual with respect to unemployment under any other Federal law administered by the State agency.

(2) The State agency shall also recover, insofar as possible, the amount of any outstanding overpayment of DUA made to the individual by another State, by deductions from any DUA payable by the State agency to the individual under the Act and this part, or from any compensation payable to the individual under any Federal unemployment compensation law administered by the State agency, or from any assistance or allowance payable to the individual with respect to unemployment under any other Federal law administered by the State agency.

(3) If the State has in effect an agreement to implement the cross-program offset provisions of section 303(g)(2) of the Social Security Act (42 U.S.C. 503(g)(2)), the State shall apply the provisions of such agreement to the recovery of outstanding DUA overpayments.

(c) Debts due the United States. DUA payable to an individual shall be applied by the State agency for the recovery by offset of any debt due to the United States from the individual, but shall not be applied or used by the State agency in any manner for the payment of any debt of the individual to any State or any other entity or person.

(d) Recovered overpayments. Overpayments recovered in any manner shall be credited or returned, as the case may be, to the appropriate account of the United States.

(e) Application of State law. Any provision of State law authorizing waiver of recovery of overpayments of compensation shall not be applicable to DUA.

(f) Final decision. Recovery of any overpayment of DUA shall not be enforced by the State agency until the determination establishing the overpayment has become final, or if appeal is taken from the determination, until the decision after opportunity for a fair hearing has become final.

(g) Procedural requirements. (1) The provisions of paragraphs (c), (d), and (f) of § 625.9 shall apply to determinations and redeterminations made pursuant to this section.

(2) The provisions of § 625.10 shall apply to determinations and redeterminations made pursuant to this section.

(h) Fraud detection and prevention. Provisions in the procedures of each State with respect to detection and prevention of fraudulent overpayments of DUA shall be, as a minimum, commensurate with the procedures adopted by the State with respect to regular compensation and consistent with the Secretary's “Standard for Fraud and Overpayment Detection,” Employment Security Manual, part V, sections 7510 et seq. (Appendix C of this part).

(i) Disqualification for fraud. Any individual who, with respect to a major disaster, makes or causes another to make a false statement or misrepresentation of a material fact, knowing it to be false, or knowingly fails or causes another to fail to disclose a material fact, in order to obtain for the individual or any other person a payment of DUA to which the individual or any other person is not entitled, shall be disqualified as follows:

(1) If the false statement, misrepresentation, or nondisclosure pertains to an initial application for DUA—

(i) The individual making the false statement, misrepresentation, or nondisclosure shall be disqualified from the receipt of any DUA with respect to that major disaster; and

(ii) If the false statement, misrepresentation, or nondisclosure was made on behalf of another individual, and was known to such other individual to be a false statement, misrepresentation, or nondisclosure, such other individual shall be disqualified from the receipt of any DUA with respect to that major disaster; and

(2) If the false statement, misrepresentation, or nondisclosure pertains to a week for which application for a payment of DUA is made—

(i) The individual making the false statement, misrepresentation, or nondisclosure shall be disqualified from the receipt of DUA for that week and the first two compensable weeks in the Disaster Assistance Period that immediately follow that week, with respect to which the individual is otherwise entitled to a payment of DUA; and

(ii) If the false statement, misrepresentation, or nondisclosure was made on behalf of another individual, and was known to such other individual to be a false statement, misrepresentation, or nondisclosure, such other individual shall be disqualified from the receipt of DUA for that week and the first two compensable weeks in the Disaster Assistance Period that immediately follow that week, with respect to which the individual is otherwise entitled to a payment of DUA.

(j) Criminal penalties. The provisions of this section on recovery of overpayments and disqualification for fraudulently claiming or receiving any DUA to which an individual was not entitled under the Act and this part shall be in addition to and shall not preclude any applicable criminal prosecution and penalties under State or Federal law.

[42 FR 46712, Sept. 16, 1977, as amended at 55 FR 556, Jan. 5, 1990; 71 FR 35516, June 21, 2006]
Notes of Decisions
Cited in 15 cases (15 in the last 5 years), 2022–2025 · leading case: Matter of Mikheil (Comm'r of Labor), 2022 NY Slip Op 04075 (N.Y. App. Div. 2022).
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Matter of Mikheil (Comm'r of Labor), 2022 NY Slip Op 04075 (N.Y. App. Div. 2022). “Claimant's right to receive future benefits was reduced by eight days and a monetary penalty of $100 was imposed because he made willful misrepresentations to obtain benefits ( see Labor Law § 594), and he was charged with recoverable overpayments of $504 in PUA benefits and…”
Matter of Lefkow (Comm'r of Labor), 2022 NY Slip Op 05122 (N.Y. App. Div. 2022). “Under these circumstances, we find no basis to disturb the Board's finding that claimant made willful misrepresentations to obtain benefits warranting the imposition of recoverable overpayments of state unemployment insurance benefits and FPUC payments, forfeiture and penalties…”
Matter of Klosterman v. New York State Dept. of Corr. & Cmty. Supervision, 2025 NY Slip Op 06960 (NY 2025). · cites it 2× “Given the Appellate Division's holding that substantial evidence supported the Board's conclusion that claimants were not totally unemployed, which [*4]claimants do not challenge on appeal, NYSDOL properly charged claimants with overpayments for the disputed unemployment…”
Matter of Almindo (New York State Dept. of Corr. & Cmty. Supervision--Comm'r of Labor), 2023 NY Slip Op 06424 (N.Y. App. Div. 2023). “Claimants were further properly charged with recoverable overpayments, including for the PUA [FN2] ( see 15 USC § 9021 [h]; 20 CFR 625.14), FPUC ( see 15 USC § 9023 [b] [1]; [f] [2]) and LWA ( see 44 CFR 206.”
S. Donahue v. UCBR (Pa. Commw. Ct. 2025). · cites it 3× “20 C.F.R. § 625.14 (a). Moreover, Section 625.”
Matter of Bellantoni (Comm'r of Labor), 2023 NY Slip Op 04472 (N.Y. App. Div. 2023). · cites it 2× “Notwithstanding claimant's assertions as to the origin of the error in his electronic application for benefits, where an individual is found to have received PUA benefits to which he or she was not entitled, such overpayments are recoverable, "whether or not the payment was due…”
Russell-Fowler v. GT Wilmington USA (Del. Super. Ct. 2023). “5 20 CFR § 625.14 ; 19 DE Code § 3325(a) (2020).”
Gabriel Jimenez v. Bd. of Review (N.J. Super. Ct. App. Div. 2023). “§ 9021 (h), require state unemployment agencies to "recover for the account of the United States the total sum of" benefits paid to an ineligible recipient, 20 C.F.R. § 625.14 (a). We are cognizant of "the hardship many people .”
T. Powell v. UCBR (Pa. Commw. Ct. 2024). “§ 9021 (d)(4); see also 20 C.F.R. § 625.14 (a) (“[I]f the State agency .”
State of New Hampshire Dep't of Emp. Se v. Mulcahy (Bankr. D.N.H. 2024). “Specifically related to PUA, 20 C.F.R. 625.14 governs overpayments and disqualifications for fraud.”
L.N. Johnson v. UCBR (Pa. Commw. Ct. 2025). “(emphasis added) (noting an expectation that States would enforce eligibility requirements, recover overpayments, and disqualify individuals for fraud); see also 20 C.F.R. § 625.14 . I have not found a Pennsylvania decision directly on point.”
M. Dukuly v. UCBR (Pa. Commw. Ct. 2025). “20 C.F.R. §625.14 (i). The CARES Act provides that individuals who are eligible for various forms of unemployment benefits, including PUA, are eligible for supplemental FPUC benefits.”
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