Penalties for unemployment fraud
A monetary penalty is a penalty you must pay as the result of a fraud overpayment. A fraud overpayment is assessed when Benefit Payment Control Unit finds evidence that you intentionally did not include required wage or employment information while filing for weekly unemployment benefits. Failing to properly report results in you receiving more unemployment benefits than you are entitled to by law. Most people in Connecticut properly report their part time wages or return to work as required.
• For the first fraudulent overpayment you received, you’ll pay back the overpayment plus a penalty equal to 50% (one half) of the overpayment. For example, if you were overpaid $200, you would pay pack $300 ($200 + a $100 penalty).
• For additional overpayments, the penalty equals the overpayment. So if you were overpaid $200 again, you would pay back $400 ($200 + a $200 penalty).
The monetary penalty is mandatory unless it is overruled by an appeal. Benefit Payment Control cannot waive a monetary penalty by law. If you are eligible for unemployment benefits but have a monetary penalty on your account, you will not receive benefits until the penalty is paid in full. We cannot apply your unemployment benefits to your monetary penalty. Additionally, CTDOL can garnish your wages, intercept your DRS and/or IRS tax refund to recover the penalty, and prosecute fraud overpayment.
Always be sure to properly report all your part-time wages and your accurate return to work date to avoid fraud overpayments from occurring. Please DO NOT send or bring payments to DOL’s physical address of 200 Folly Brook Boulevard in Wethersfield as that will delay the processing of your payment.