An overpayment happens when you get unemployment benefits from DES that you need to pay back.

DES has found that you were not eligible for benefits already paid to you. You will get a Notice of Overpayment that lists the reason(s) you were overpaid and for which weeks. There are two kinds of overpayments:

1. Non-Fraud: Occurs when DES finds that you got unemployment benefits you were not eligible for, through no fault of your own. You will need to pay back all non-fraud payments.
2. Fraud: This happens when you purposely give wrong information or do not share important information to get benefits. Some common ways this can happen include:
   1. Not reporting your earnings when you start a full-time, part-time, or temporary job.
   2. Not looking for a job while you’re getting benefits.
   3. Not keeping a record of your work search.
   4. Intentionally giving incorrect information or leaving out details when you file your claim or weekly certification.
   5. Not accurately reporting the wages you earned for the week you worked.
   6. Not reporting pay you got for training.
   7. Not reporting severance pay or bonus money.
   8. Helping others get benefits they are not eligible for.
   9. Committing identity theft.

DES audits unemployment claims using:

• Information from the North Carolina New Hire Directory (NCNH) and the National Directory of New Hires (NDNH).
• Wage information from employers.
• Tips and leads from others.

If an audit shows that you may have gotten benefits that you should not have, an investigator will look into it and contact you with more details.

Depending on the type of overpayment, DES may collect money by:

• Withholding part of your earnings.
• Withholding your federal tax refund.
• Withholding your state tax refund.
• Withholding your lottery winnings.
• Beginning criminal prosecution and/or civil court action.

 If you have an overpayment balance while you are getting benefits, DES will cut your benefits by:

• 50% for non-fraud overpayments or
• 100% for fraud overpayments.

These amounts will be applied to your overpayment balance.

You must pay the total to avoid debt collection. If you cannot pay the total, you may set up a payment plan through your MyNCUIBenefits account or by contacting a Recovery Specialist at 888-737-0259. You can make payments by:

• Credit card
• Debit card
• Check
• Money order

Credit and debit card payments may be made through your MyNCUIBenefits account.  

Make checks or money orders payable to the N.C. Division of Employment Security. Include your name and claimant identification number, and mail to:

N.C. Division of Employment Security
Attn: Benefit Payment Control Unit
P.O. Box 25903
Raleigh, NC 27611-5903

1. You will get monthly statements showing your balance and the minimum amount that you must pay monthly.
2. Sign in to your MYNCUIBenefits account and select Overpayments to view balance and payment information.

You may file an appeal within 30 days from the date you were notified of your overpayment determination.

Follow these steps to submit your appeal:

1. Sign in to your MyNCUIBenefits account.
2. Go to Claims.
3. Select View for Non-Monetary Determinations.
4. Click Request Appeal.

You will get a notice about an evidentiary hearing being scheduled with instructions about what you need to provide.

A waiver can forgive an overpayment. You may be considered for a waiver if you meet all of the following requirements:

• The overpayment was not due to fraud*.
• The overpayment was not your fault.
• Your appeals decision is final.

*NOTE: Fraudulent overpayments or overpayments of Disaster Unemployment Assistance paid with Federal Emergency Management Agency (FEMA) funds cannot be waived.

You may request a waiver for non-fraud overpayments only after the appeal period has expired and/or the appeal decision is final.

Waivers must be submitted through your MYNCUIBenefits account or you may write a letter that includes your:

• Full name
• Claimant ID
• A statement requesting a waiver
• The reason(s) why the money you owe should be forgiven
• Documentation you think may help prove the request for a waiver (optional)

If you chose to submit your waiver by mail or fax, please send to:

Mail: 
N.C. Division of Employment Security
Attn: Waiver Coordinator
P.O. Box 25903
Raleigh, NC 27611-5903

Fax: 919-857-1296

Yes. If your claim awarding you benefits is reversed on appeal, the money you got is still an overpayment and must be repaid (G.S.§ 96-18(g)(2)).

You may only file a request for waiver once.

No, a request for waiver decision does not change your eligibility for unemployment benefits.

No. You must file a request for waiver for each overpayment.

The final decision will be mailed, and you can find it in the Documents section of your MyNCUIBenefits account home page. Decisions are made in the order in which the waiver requests are received.

You are committing UI fraud if you report false information on purpose or fail to disclose material fact to get unemployment benefits or to increase your benefit amount.

Examples include:

• Continuing to get unemployment benefits after you found a job.
• Making money while getting benefits and not reporting those wages in your weekly certifications.
• Giving false information or not sharing information.
• Getting benefits but not looking for work or being able to work.
• Reporting wrong hours or wages.
• Helping someone else get unemployment benefits using false information.

If you commit UI fraud, you may have to:

• Pay back the overpayment amount plus 15% extra.
• Lose the right to get unemployment benefits for one year.
• Face fines, criminal charges, and serve up to 12 months in prison.

If you do not show up or provide a written statement, your case will be decided without you.

Report unemployment fraud using our online Fraud Report Form.

You may also call the DES Fraud Hotline at 919-701-3543.

You may get this notice if DES finds out that you started working again. Not reporting the gross wages you earn each week you file may be considered unemployment fraud.

You must respond within 14 days from the date of the notice. If you do not respond, your unemployment benefits will stop being paid.

You may have gotten multiple notices for several reasons:

• Your employer reported a different start date to the National Directory of New Hires (NDNH) than the one you provided.
• Several employers reported you as hired in the NC New Hire Directory (NCNHD).
• You were recently re-hired.

If you get multiple notices, you must complete each one through your MyNCUIBenefits account.

The National Directory of New Hires (NDNH) shares employment and unemployment insurance information to help child support agencies. DES uses this database to find people who may have returned to work but are still filing for unemployment benefits.