Chapter 12. Procedures for Initial Determination of Unemployment Insurance Overpayments and for Appeals of Overpayment Determinations
Regulation .01 Purpose.LinkCopy Citation
The purpose of these regulations is to establish procedures for the initial determination of overpayments of unemployment insurance benefits, and to establish the appeal process of such determinations in accordance with Labor and Employment Article, §8-809(c), Annotated Code of Maryland, and applicable federal law.
Regulation .02 Scope and Applicability.LinkCopy Citation
These regulations apply to any claimant whom the Secretary or the Secretary’s designee has reason to believe may have received an overpayment of unemployment insurance benefits or has been determined to have received an overpayment of unemployment insurance benefits.
Regulation .03 Pre-Determination Investigations.LinkCopy Citation
A.
Before determining that a claimant has been overpaid, the Secretary or the Secretary’s designee shall conduct a pre-determination investigation in accordance with Labor and Employment Article, Title 8, Annotated Code of Maryland, and other applicable law.
B.
As a part of the pre-determination investigation, the Department shall take the following steps:
(1)
Make reasonable attempts to promptly contact the claimant to whom the potential overpayment was made and provide the claimant with an opportunity to respond to requests for information about the potential overpayment;
(2)
Independently verify information received from a computer cross-match with a federal database or other automatic processes or matches;
(3)
Make reasonable attempts to gather all relevant information that is of sufficient quality and quantity to support the findings and rationale for the determination; and
(4)
Provide the claimant an opportunity to rebut information received from a computer cross-match with any database, or from an employer or other outside source.
C.
If the Secretary’s or Secretary’s designee’s review reveals a dispute of material fact concerning whether the claimant is eligible or disqualified, the Secretary or the Secretary’s designee shall conduct a proceeding in accordance with COMAR 09.32.02.16E.
D.
The notice of the proceedings shall be set forth as follows:
(1)
The Secretary’s designee shall deliver notice to the claimant in accordance with the claimant’s preferred method of communication; and
(2)
The notice described in this regulation shall contain the following information:
(a)
The issues to be resolved at the proceeding;
(b)
The date, time, and place of a proceeding to determine whether the claimant was overpaid;
(c)
Notice that the proceeding may result in an overpayment determination that may lead to an enforceable monetary judgment against the claimant, in addition to or instead of the reduction or elimination of current or future benefits; and
(d)
Notice that any party shall have the right to be present by telephone or in person, as required by the Secretary or the Secretary’s designee, and may be represented by an attorney or other representative of the party’s choosing.
E.
During the proceeding described above, the parties may:
(1)
Be present, by telephone or in person, as required by the Secretary;
(2)
Be represented by an attorney or other representative of the party’s choosing;
(3)
Present and rebut evidence and argument relating to the issues;
(4)
Cross-examine any person who participates in person or by telephone at the proceeding and testifies or provides information relating to the issues; and
(5)
Be given the opportunity to examine all evidence relating to any issue that is before the Secretary and all evidence upon which the Secretary may rely in reaching a determination.
Regulation .04 Notice of Determination of Overpayment.LinkCopy Citation
A.
If, after conducting the investigation under Regulation .03 of this chapter, the Secretary or the Secretary’s designee determines that the claimant was overpaid, the Secretary or the Secretary’s designee shall deliver notice to the claimant.
B.
The notice shall be delivered to the claimant by first-class mail to the claimant’s last known address and in accordance with the claimant’s preferred communication method, if other than first-class mail, and shall:
(1)
Contain all information required by Labor and Employment Article, §8-809(c)(1), Annotated Code of Maryland;
(2)
Provide that the claimant has been determined liable to refund the amount of benefits to which the claimant is not entitled and that the amount, if not previously collected, shall be deducted from future benefits payable to the claimant, unless the claimant exercises the claimant’s appeal rights more specifically set forth in Regulation .05 of this chapter, or waiver rights more specifically set forth in COMAR 09.32.07; and
(3)
Provide information on the procedures to request an overpayment waiver.
C.
The notice described above may not reference fraud, unless the Secretary or the Secretary’s designee has determined that the overpayment resulted from fraud.
Regulation .05 Appeal Procedures.LinkCopy Citation
A.
In the event a claimant challenges the finding of overpayment, or the amount of overpayment, the claimant may appeal the Department’s determination, provided, however, that any appeal exercised pursuant to the provisions of this chapter shall be limited solely to the overpayment issue.
B.
If no appeal is taken within 30 days after delivery of the notice of overpayment determination, no timely filed waiver request is pending decision by the Secretary or the Secretary’s designee, and no timely filed appeal of the denial of an overpayment waiver request is pending, the overpayment determination will be considered final and the court shall, upon application of the Department, enter a judgment in the amount provided by the notice of overpayment determination
C.
Appeals described in this regulation shall be made in accordance with COMAR 09.32.11 or, if the claimant disagrees with the decision issued, in accordance with COMAR 09.32.06, as applicable.
Chapter annotations
Authority: Labor and Employment Article, §§8-305 and 8-809, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.05 adopted as an emergency provision effective August 17, 2022 (49:20 Md. R. 909); emergency provision expired effective November 22, 2022
History: Regulations .01—.05 adopted effective March 6, 2023 (50:4 Md. R. 122)