Court Opinion

ID: 9894286
Source: CourtListenerOpinion
Date Created: 2023-11-01 14:03:57.186572+00
Date Added: 2024-06-11T09:09:34.871580
License: Public Domain

Cite as 2023 Ark. App. 496
                   ARKANSAS COURT OF APPEALS
                                       DIVISION III
                                       No. E-22-406

STACY HICKEY                                 Opinion Delivered November 1, 2023
                            APPELLANT
                                             APPEAL FROM THE ARKANSAS BOARD
V.                                           OF REVIEW
                                             [NO. 2022-BR-00300]

DIRECTOR, DIVISION OF
WORKFORCE SERVICES                           AFFIRMED IN PART; REMANDED
                               APPELLEE      IN PART

                        STEPHANIE POTTER BARRETT, Judge

       Stacy Hickey (“Hickey”) appeals the decision of the Arkansas Board of Review

affirming the notice of nonfraud overpayment determination issued by the Division of

Workforce Services (“Division”) under Ark. Code Ann. § 11-10-532(b) (Supp. 2021), holding

Hickey liable to repay $15,730. We affirm in part and remand in part for further findings.

       Appellant filed for unemployment benefits and received state and federal benefits

pursuant to the CARES Act. On November 12, 2021, the Division issued a notice of agency

determination to the appellant advising her that she was disqualified from receiving benefits

under Arkansas Code Annotated section 11-10-513(a) (Supp. 2021) because she voluntarily

left her last work without good cause. The appellant failed to timely appeal from that

determination.
       The Division then issued a notice of nonfraud overpayment determination on

December 17, 2021, finding appellant was liable to repay $15,730 in benefits pursuant to

Arkansas Code Annotated section 11-10-532(b). Appellant had received $15,730, which

included $2,209 in regular state benefits and $13,521 in federal benefits, before the Division

determined that she had been ineligible.          Appellant filed a timely appeal of this

determination to the Arkansas Appeal Tribunal (“Tribunal”), which conducted a hearing on

January 11, 2022, and affirmed the Division’s determination.

       In affirming the Division’s determination, the Tribunal found that appellant had

filed continued claims for benefits for which she was not eligible from October 3, 2020,

through June 26, 2023. Accordingly, it found that appellant was liable to repay the benefits

under Arkansas Code Annotated section 11-10-532 unless the overpayment was the result

of agency error, and it would be against equity and good conscience to require repayment.

The Tribunal concluded the overpayment was not due to Division error and that the

appellant was required to repay $15,730. The appellant timely appealed to the Board, which

affirmed the decision.

       On appeal of an unemployment-compensation case, we affirm the Board’s decision

when it is supported by substantial evidence. Jones v. Dir., 2019 Ark. App. 341, at 3, 581

S.W.3d 517, 518. Substantial evidence is what reasonable minds might accept as adequate

to support a conclusion. Id. “[W]e review the evidence and all reasonable inferences

deducible therefrom in the light most favorable to the Board’s findings.” Id. However, our

function on appeal is not to merely ratify whatever decision is made by the Board. Id.

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Therefore, “[w]e will reverse the Board’s decision when it is not supported by substantial

evidence.” Id.

       When a claimant receives both state and federal unemployment benefits and the State

attempts to recover nonfraud overpayments, the Board must conduct two different waiver

analyses for the state unemployment benefits and the federal unemployment benefits. Hill v.

Dir., 2023 Ark. App. 418, at 2. Before repayment of state benefits can be waived, the Director

must find the overpayment was a direct result of the Division’s error, and it would be against

equity and good conscience to require repayment. See Ark. Code Ann. § 11-10-532(b)(2).

       The Board affirmed the conclusion that the $15,730 overpayment was a result of a

final disqualifying determination and not due to an error by the Division. This is the correct

statement of the standard for the $2,209 in state benefits. See Ark. Code Ann. § 11-10-

532(b)(2). Therefore, we affirm the decision requiring appellant to repay the $2,209 in state

unemployment benefits.

       However, the Division also must find that the federal payments were made without

fault on the part of the claimant and that repayment would be contrary to equity and good

conscience for repayment of the federal funds to be waived. See 15 U.S.C. § 9023(f)(2).

       Here, the required federal waiver analysis to determine whether the $13,521 in

federal funds must be repaid has not been performed. See Rush v. Dir., 2023 Ark. App. 276,

at 6, 668 S.W.3d 520, 524 (citing 15 U.S.C. § 9023(f)(2)). Where sufficient findings of fact

are lacking, we must remand to the Board for it to provide findings of fact upon which to

perform appellate review. See Rush, supra. Further findings are necessary as to whether

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appellant was at fault and whether repayment would be contrary to equity and good

conscience before requiring her to repay the $13,521 in federal benefits.

       Accordingly, we affirm the decision requiring appellant to repay the $2,209 in state

benefits, and we remand for further findings regarding whether appellant is required to repay

the $13,521 in federal benefits for the reasons set forth above.

       Affirmed in part; remanded in part.

       VIRDEN and GLADWIN, JJ., agree.

       Stacy Hickey, pro se appellant.

       Cynthia L. Uhrynowycz, Associate General Counsel, for appellee.

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