Overpayment FAQs

What is unemployment insurance fraud?

What is unemployment insurance fraud?

The most common types of UI fraud are:

  • Claiming benefits without looking for work;
  • Returning to work while collecting benefits and not reporting earnings; 
  • Withholding information from the Division of Employment Security or Division of Workforce Solutions; 
  • Performing temporary or pick up work and not reporting earnings; 
  • Reporting inaccurate hours and earnings; 
  • Collecting benefits based on false or inaccurate information; 
  • Claiming benefits while unable or available for work; 
  • Helping others claim benefits to which they are not entitled; and
  • Identity theft.
What penalties will I face if I commit fraud?

What penalties will I face if I commit fraud?

  • You will pay an additional 15% of the overpaid amount as a penalty.
  • You will be disqualified from receiving unemployment insurance benefits for one year.
  • You may be prosecuted for a Class 1 Felony and face a fine and up to 12 months in prison.
  • If the overpayment is more than $400, you may be prosecuted.
Why am I being investigated?

Why am I being investigated?

An audit of your unemployment insurance claim indicated that you may have received benefits that you were not eligible to receive. An investigation is required to determine the accuracy of your benefit payments.

Where does the wage information come from for the investigation?

Where does the wage information come from for the investigation?

The Division of Employment Security receives wage information from past and current employers and crossmatches that information with unemployment claims data.  

What happens if I do not show up for the conference with the fraud investigator?

What happens if I do not show up for the conference with the fraud investigator?

If you do not appear or do not provide a written statement, the case will be adjudicated and decided without your input.

What is the National Directory of New Hires?

What is the National Directory of New Hires?

The National Directory of New Hires provides employment and unemployment insurance information to enable state child support agencies to be more effective in locating noncustodial parents and establishing and enforcing child support orders. The Division of Employment Security cross references its benefits information with the NDNH database to identify individuals who may have returned to work but continue to file for unemployment insurance benefits.

What will happen if I fail to respond to my New Hire/Recall Confirmation Notice?

What will happen if I fail to respond to my New Hire/Recall Confirmation Notice?

The notice requires that you respond within 14 days from the date of the notice. If you fail to respond by the requested deadline, your benefits will be interrupted.

Why have I received multiple New Hire/Recall Confirmation Notices?

Why have I received multiple New Hire/Recall Confirmation Notices?

You may have received multiple notices for a variety of reasons, such as your employer has submitted your information to National Directory of New Hires with different start dates, multiple employers have reported your hire to NDNH or you were recently re-hired. If you receive multiple notices, complete each as accurately as possible and submit them to the Division of Employment Security by the requested deadlines.

How do I respond to a New Hire/Recall Confirmation Notice?

How do I respond to a New Hire/Recall Confirmation Notice?

You may respond to the notice by:

Phone: 919-707-1338

Fax: 919-857-1296

Mail:  

N.C. Department of Commerce
Division of Employment Security
Post Office Box 27967
Raleigh, NC 27611-27967
Do I need to repay my overpayment if my claim is reversed on appeal?

Do I need to repay my overpayment if my claim is reversed on appeal?

Yes. If your claim is reversed on appeal, the benefits received will be an overpayment subject to repayment to the Division of Employment Security. The law, G.S.§96-18(g)(2), requires that all overpayments be repaid to DES.

What can I do if I disagree with the overpayment determination?

What can I do if I disagree with the overpayment determination?

You may file a written appeal of an overpayment determination. You have 30 days from the date the overpayment determination is mailed to file an appeal. You may submit your appeal to the mailing address, fax or email address provided in the determination. An evidentiary hearing will be scheduled in your case. You will receive a hearing notice with instructions after your appeal is received.

Why did you take my federal and/or state income tax refund?

Why did you take my federal and/or state income tax refund?

The Employment Security Law permits the Division of Employment Security to garnish your federal income tax refund to repay any fraud overpayment or overpayments caused by your failure to report your earnings. DES may also garnish your state income tax refund to recoup any type of overpayment balance.

How can I make sure that DES doesn’t take my tax refund next year because I owe money?

How can I make sure that DES doesn’t take my tax refund next year because I owe money?

You must repay your overpayment balance in full to prevent interception of your state and/or federal tax refunds. If you cannot repay the balance, you may enter into a payment agreement by contacting a Division of Employment Security recovery specialist at 919-707-1338. The standard payment agreement must include a down payment. All additional payments must be received as scheduled.

What happens if I do not repay my fraudulent overpayment?

What happens if I do not repay my fraudulent overpayment?

  • Your federal and state tax refunds will be intercepted until your overpayment is resolved.
  • Any North Carolina lottery winnings will be intercepted. 
  • All future unemployment insurance benefits may be intercepted until your overpayment is resolved.
  • Intangible property and/or wages may be attached or garnished.
  • The Division of Employment Security may seek criminal prosecution and/or pursue civil court action against you.
  • If you obtain employment in North Carolina State government, the overpayment may be recouped pursuant to G.S. §143-553.
How can I report unemployment insurance fraud?

How can I report unemployment insurance fraud?

If you suspect that someone is committing fraud, you may report that information by calling 919-707-1338. 

You may remain anonymous if you choose. You may also report fraud, waste and/or abuse to the North Carolina Office of the State Auditor’s hotline by calling 800-730-8477.