Unemployment Insurance: Federal Overpayment Recovery

Possible causes of overpayment under federal programs include:

• An IWD decision that reversed previously allowed Federal CARES Act unemployment benefits.
• Failure by the claimant and/or employer to accurately report earnings, hours worked, holiday, pay, vacation pay, or severance pay while filing for CARES Act benefits.
• The claimant is disqualified from receiving CARES Act benefits due to separation from a part-time job while still working a full-time job.
• Claimant was not off of work due to COVID-19.

If a claimant knowingly provides false information in order to receive a CARES ACT benefit that he or she knew they were not entitled to, this meets the definition of “Fraudulent Practice.”  

In certain cases where deliberate misrepresentation has occurred, the case may be turned over to the County Attorney’s office in the county where the claimant resides.

The County Attorney then will decide on a case-by-case basis whether felony charges will be filed. Overpayments caused by deliberate misrepresentation (fraud) include a 15 percent penalty.

A non-fraud CARES Act overpayment happens when an individual receives benefits they were not eligible for, but the Division of Employment Security finds that they are not at fault or they did not intentionally give false information or withhold information to receive CARES Act benefits.

Per Sections 2104 (F) (2), 2107 (E) (2), and 201(d) of the CARES Act, if you were deemed to have been overpaid through the PEUC, FPUC, or PUA, you may request an overpayment waiver.

CARES Act overpayments that are determined to be fraudulent do not qualify for a waiver request. Any individual with a debt from fraudulent overpayment of unemployment insurance will be disqualified from any and all unemployment insurance benefits until the balance is paid in full. For more information, see Iowa Code 96.5 or view the FAQ below.

View the Waiver Request Letter FAQ

Applying for a CARES Act overpayment waiver can be done by accessing the IowaWORKS system. 

• To do so, visit iowaworks.gov, then select sign in/register and then individual.
• Once logged in, visit your claimant dashboard to get started on a waiver. 

Following the submission of your application, you will receive a confirmation that the application was successfully received. Only one waiver application request per claimant is allowed. If a second entry is attempted, you will receive a message that your application has already been received. 

Iowa Workforce Development appreciates your patience while we work requests in the order that they've been received.

• Overpayment statements will reflect the current balance due, including any overpayment that is under review for waiver. If the overpayment is waived, please allow a few statements before the waived overpayment is reflected on your statement.
• The decision about your waiver will be mailed to you via USPS.
• For any other questions on your claim, please contact uiclaimshelp@iwd.iowa.gov or call us at 866-239-0843.