TITLE 34
LABOR AND INDUSTRIAL RELATIONS
ARTICLE 9
PROHIBITED AND VOID ACTS; OVERPAYMENTS
34-8-254. Overpayments.
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Any person who has received any sum as benefits under this chapter while any conditions for the receipt of benefits imposed by this chapter were not fulfilled or while the person was disqualified from receiving benefits shall, in the discretion of the Commissioner:
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Be liable to have such sums deducted from any future benefits payable to such person under this chapter, with no single deduction to exceed 50 percent of the amount of the payment from which such deduction is made; and
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Be liable to repay the Commissioner for the Unemployment Compensation Fund a sum equal to the amount so received by such person. Such sum shall be collectable in the manner provided by law for the collection of debts or any other method of collection specifically authorized by this chapter.
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For the purpose of collecting overpaid benefits when the person who owes the payment resides or is employed outside this state, the Commissioner may enter into an agreement with one or more private persons, companies, associations, or corporations providing debt collection services; provided, however, the Commissioner shall retain legal responsibility and authority for the collection of overpayments of benefits and any debt collection agency shall function merely as an agent of the Commissioner for this purpose. The agreement may provide, at the discretion of the Commissioner, the rate of payment and the manner in which compensation for services shall be paid. The Commissioner shall provide the necessary information for the contractor to fulfill its obligations under the agreement. Any funds recovered shall be transmitted promptly to the Commissioner for deposit into the Unemployment Compensation Fund.
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Except as provided in paragraph (2) of this subsection, the Commissioner may waive the repayment of an overpayment of benefits if the Commissioner determines such repayment to be inequitable.
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If any person receives such overpayment because of false representations or willful failure to disclose a material fact by such person, inequitability shall not be a consideration and the person shall be required to repay the entire overpayment plus all applicable penalty and interest amounts. Such penalty amounts shall not be waived. Interest accrued on the overpayment is subject to waiver if the Commissioner determines such waiver to be in the best interest of this state.
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Any person who has received any sum as benefits under this chapter and is subsequently awarded or receives back wages from any employer for all or any portion of the same period of time for which such person has received such benefits shall be liable, in accordance with subsection (a) of this Code section, to repay a sum equal to the benefits paid during the period for which such back wages were awarded, and the employer shall be:
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Authorized to deduct from an award of back wages an amount equal to all unemployment benefits received by such person under this chapter with respect to the same period of time. The employer shall remit the amount deducted to the Commissioner for the Unemployment Compensation Fund. Upon receipt of such payment the Commissioner shall then make appropriate adjustments in the unemployment contributions experience rating account of the employer as otherwise provided in this chapter; or
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Entitled to a setoff against the award of back wages in an amount equal to all benefits paid to the employee during the period for which such back wages are awarded or received, if such employer is a governmental entity or nonprofit organization that has elected to make payments in lieu of contributions in accordance with Code Section 34-8-158 and the employee is subsequently awarded or otherwise receives payment of back wages for any period of time for which such employee received benefits under this chapter.
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Any action to recover an overpayment shall be brought by the Commissioner or an authorized representative of the Commissioner within seven years from the release date of the notice of determination and overpayment by the department.
(Code 1981, §34-8-254, enacted by Ga. L. 1991, p. 139, § 1; Ga. L. 1994, p. 640, § 5; Ga. L. 1994, p. 779, § 1; Ga. L. 2014, p. 730, § 8/HB 714; Ga. L. 2015, p. 830, § 6/HB 117.)
The 2015 amendment,
effective May 6, 2015, added subsection (e).
Law reviews.
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For article on the 2014 amendment of this Code section, see 31 Ga. St. U.L. Rev. 137 (2014).
JUDICIAL DECISIONS
Department failed to prove fraud.
- Trial court erred by failing to conclude that it was not proven that a claimant knowingly underreported income in order to obtain unemployment benefits because while the evidence may have established that the claimant was less than diligent in monitoring deposits and ascertaining the income received, such conduct was an insufficient basis for imposing fraud penalties pursuant to O.C.G.A.
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34-8-255. Charles v. Butler, 331 Ga. App. 336, 771 S.E.2d 43 (2015).
Cited in
Powell v. Dougherty Christian Academy, Inc., 215 Ga. App. 551, 451 S.E.2d 465 (1994).
OPINIONS OF THE ATTORNEY GENERAL
Community service instead of restitution not authorized.
- O.C.G.A. Ch. 8, T. 34 does not authorize the imposition of a criminal sentence for unemployment fraud that permits community service in lieu of restitution of overpaid benefits to the Department of Labor. 1993 Op. Att'y Gen. No. 93-15.