Code of Virginia — Title 60.2 (Unemployment Compensation), Chapter 6 (BENEFITS)
§ 60.2-633. (Effective until July 1, 2028) Receiving benefits to which not entitled.
A. Any person who has received any sum as benefits under this title to which he was not entitled shall be liable to repay such sum to the Commission. For purposes of this section, "benefits under this title" includes benefits under an unemployment benefit program of the United States or of any other state. In the event the claimant does not refund the overpayment, the Commission shall deduct from any future benefits such sum payable to him under this title. The Commission shall waive the requirement to repay the overpayment after an individual case review if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. Subject to the requirements of this section, the Commission may grant a waiver of the obligation to repay an overpayment to an individual who has a pending appeal with the Commission.

For the purposes of this section:

1. An overpayment made "without fault on the part of the individual" shall include overpayments that (i) result from administrative error; (ii) are the result of inducement, solicitation, or coercion on the part of the employer; or (iii) result from the employer's failure to respond timely or adequately to the Commission's request for information, as required by § 60.2-528.1. An overpayment shall not be considered "without fault on the part of the individual" if such overpayment was the result of (a) a reversal in the appeals process, unless the employer failed to respond timely or adequately to the Commission's request for information regarding the individual's separation from employment; (b) a programming, technological, or automatic system error not directly associated with an individual claim that results in erroneous payments to a group of individuals; or (c) fraud.

2. It shall be contrary to equity and good conscience if requiring repayment of an overpayment would deprive the individual of the income required to provide for basic necessities, including shelter, food, medicine, child care, or any other essential living expense.

B. For any overpayment where repayment is not forgiven, the Commission shall have the authority to negotiate the terms of repayment, which shall include (i) deducting up to 50 percent of the payable amount for any future week of benefits claimed, rounded down to the next lowest dollar until the overpayment is satisfied; (ii) forgoing collection of the payable amount until the recipient has found employment as defined in § 60.2-212; or (iii) determining and instituting an individualized repayment plan. The Commission shall collect an overpayment of benefits under this chapter caused by administrative error only by offset against future benefits or a negotiated repayment plan; however, the Commission may institute any other method of collection if the individual fails to enter into or comply with the terms of the repayment plan. Administrative error shall not include decisions reversed in the appeals process.

Overpayments where the obligation to repay has not been waived may be collectible by civil action in the name of the Commission. Amounts collected in this manner may be subject to an interest charge as prescribed in § 58.1-15 from the date of judgment and may be subject to fees and costs. Collection activities for any benefit overpayment established of $5 or less may be suspended. When a benefit overpayment is not caused by fraud on the part of the claimant, pursuant to § 60.2-618 or 60.2-632, collection activities shall be suspended and the Commission shall, at the earliest of the following, determine as uncollectable and discharge the benefit overpayment from its records if it remains unpaid (a) after the expiration of five years from the last day of the benefit year, as defined in § 60.2-206, in which the overpayment was made; (b) immediately upon the death of such person; or (c) upon such person's discharge in bankruptcy occurring subsequently to the determination of overpayment. In any other circumstance, the Commission may determine as uncollectible and discharge from its records any benefit overpayment (1) that remains unpaid after the expiration of seven years from the last day of the benefit year, as defined in § 60.2-206, in which the overpayment was made; (2) immediately upon the death of such person; (3) upon such person's discharge in bankruptcy occurring subsequently to the determination of overpayment; or (4) at any time where, provided the state has already made reasonable attempts to collect any liabilities to the state unemployment fund, pursuant to rules and regulations promulgated by the Commission, the Commission finds such overpayment to be uncollectible or the recovery of such overpayment to be administratively impracticable. Any existing overpayment balance not equal to an even dollar amount shall be rounded to the next lowest even dollar amount.

C. The Commission is authorized to accept repayment of benefit overpayments by use of a credit card. The Virginia Employment Commission shall add to such payment a service charge for the acceptance of such card. Such service charge shall not exceed the percentage charged to the Virginia Employment Commission for use of such card.

D. No determination with respect to benefit overpayments shall be issued until after a determination or decision that finds a claimant ineligible or disqualified for benefits previously paid has become final.

E. The Commission shall notify each individual with an unpaid overpayment of benefits established for claim weeks commencing on or after March 15, 2020, under this chapter or any unemployment benefit program of the United States or any other state, that such individual may be entitled to a waiver of the obligation to repay such overpayment and shall provide 30 days from the date of such notification for the individual to request a waiver of repayment. For good cause shown, the Commission may extend the 30-day period for requesting a waiver. The Commission shall conduct an individualized review and adjudicate any request received in accordance with the provisions of § 60.2-619, and any individual who is denied a waiver shall have the right to appeal the Commission's decision as provided in subsection D of § 60.2-619. In ruling on any waiver request, the Commission shall apply the provisions of this chapter or, if applicable, the overpayment waiver provisions of any unemployment compensation program of the United States.

F. Final orders of the Commission with respect to benefit overpayments may be recorded, enforced and satisfied as orders or decrees of a circuit court upon certification of such orders by the Commissioner as may be appropriate.

G. All costs that result from implementing the provisions of this section shall be incurred by federal administrative grants, where permitted. For an overpayment waived pursuant to this section, no individual employer shall be responsible for (i) reimbursing benefits or (ii) benefits charges, except as provided in § 60.2-528.1.

Code 1950, § 60-115; 1962, c. 138; 1968, c. 738, § 60.1-132; 1974, c. 466; 1979, c. 675; 1980, c. 751; 1981, c. 251; 1984, c. 458; 1985, c. 151; 1986, c. 480; 1988, c. 544; 1990, c. 687; 1996, c. 95; 2008, c. 492; 2010, c. 327; 2013, c. 683; 2021, Sp. Sess. I, c. 539; 2024, cc. 591, 746, 772.