Sec. 31-273. Overpayments; recovery and penalties. False or misleading declarations, statements or representations. Additional violations and penalties.
Sec. 31-273. Overpayments; recovery and penalties. False or misleading declarations, statements or representations. Additional violations and penalties. (a)
Any person who, through error, has received any sum as benefits under this chapter
while any condition for the receipt of benefits imposed by this chapter was not fulfilled
in his case, or has received a greater amount of benefits than was due him under this
chapter, shall be charged with an overpayment of a sum equal to the amount so overpaid
to him, provided such error has been discovered and brought to his attention within one
year of the date of receipt of such benefits. A person whose receipt of such a sum was
not due to fraud, wilful misrepresentation or wilful nondisclosure by himself or another
shall be entitled to a hearing before an examiner designated by the administrator. Such
examiner shall determine whether: (A) Such person shall repay such sum to the administrator for the Unemployment Compensation Fund, (B) such sum shall be recouped by
offset from such person's unemployment benefits, or (C) repayment or recoupment of
such sum would defeat the purpose of the benefits or be against equity and good conscience and should be waived. In any case where the examiner determines that such
sum shall be recouped by offset from a person's unemployment benefits, the deduction
from benefits shall not exceed fifty per cent of the person's weekly benefit amount.
Where such offset is insufficient to recoup the full amount of the overpayment, the
claimant shall repay the remaining amount in accordance with a repayment schedule as
determined by the examiner. If the claimant fails to repay according to the schedule,
the administrator may recover such overpayment through a wage execution against the
claimant's earnings upon his return to work in accordance with the provisions of section
52-361a. Any person with respect to whom a determination of overpayment has been
made, according to the provisions of this subsection, shall be given notice of such determination and the provisions for repayment or recoupment of the amount overpaid. No
repayment shall be required and no deduction from benefits shall be made until the
determination of overpayment has become final. The determination of overpayment
shall be final unless the claimant, within twenty-one days after notice of such determination was mailed to him at his last-known address, files an appeal from such determination
to a referee. If the last day for filing an appeal falls on any day when the offices of the
Employment Security Division are not open for business, such last day shall be extended
to the next business day. The appeal shall be heard in the same manner provided in
section 31-242 for an appeal from the decision of an examiner on a claim for benefits.
Any party aggrieved by the decision of the referee, including the administrator, may
appeal to the Employment Security Board of Review in the manner provided in section
31-249. Decisions of the board may be appealed to the Superior Court in the manner
provided in section 31-249b. The administrator is authorized, eight years after the payment of any benefits described in this subsection, to cancel any claim for such repayment
or recoupment which in his opinion is uncollectible. Effective January 1, 1996, and
annually thereafter, the administrator shall report to the joint standing committee of
the General Assembly having cognizance of matters relating to finance, revenue and
bonding and the joint standing committee of the General Assembly having cognizance
of matters relating to labor and public employees, the aggregate number and value of
all such claims deemed uncollectible and therefore cancelled during the previous calendar year. Any determination of overpayment made under this section which becomes
final may be enforced by a wage execution in the same manner as a judgment of the
Superior Court when the claimant fails to pay according to his repayment schedule. The
court may issue a wage execution upon any final determination of overpayment in the
same manner as in cases of judgments rendered in the Superior Court, and upon the
filing of an application to the court for an execution, the administrator shall send to the
clerk of the court a certified copy of such determination.
(b) (1) Any person who, by reason of fraud, wilful misrepresentation or wilful
nondisclosure by such person or by another of a material fact, has received any sum as
benefits under this chapter while any condition for the receipt of benefits imposed by
this chapter was not fulfilled in such person's case, or has received a greater amount of
benefits than was due such person under this chapter, shall be charged with an overpayment and shall be liable to repay to the administrator for the Unemployment Compensation Fund a sum equal to the amount so overpaid to such person. If such person does
not make repayment in full of the sum overpaid, the administrator shall recoup such
sum by offset from such person's unemployment benefits. The deduction from benefits
shall be one hundred per cent of the person's weekly benefit entitlement until the full
amount of the overpayment has been recouped. Where such offset is insufficient to
recoup the full amount of the overpayment, the claimant shall repay the remaining
amount plus, for any determination of an overpayment made on or after July 1, 2005,
interest at the rate of one per cent of the amount so overpaid per month, in accordance
with a repayment schedule as determined by the examiner. If the claimant fails to repay
according to the schedule, the administrator may recover such overpayment plus interest
through a wage execution against the claimant's earnings upon the claimant's return to
work in accordance with the provisions of section 52-361a. In addition, the administrator
may request the Commissioner of Administrative Services to seek reimbursement for
such amount pursuant to section 12-742. The administrator is authorized, eight years
after the payment of any benefits described in this subsection, to cancel any claim for
such repayment or recoupment which in the administrator's opinion is uncollectible.
Effective January 1, 1996, and annually thereafter, the administrator shall report to the
joint standing committee of the General Assembly having cognizance of matters relating
to finance, revenue and bonding and the joint standing committee of the General Assembly having cognizance of matters relating to labor and public employees, the aggregate
number and value of all such claims deemed uncollectible and therefore cancelled during
the previous calendar year.
(2) Any person who has made a claim for benefits under this chapter and has knowingly made a false statement or representation or has knowingly failed to disclose a
material fact in order to obtain benefits or to increase the amount of benefits to which
such person may be entitled under this chapter shall forfeit benefits for not less than one
or more than thirty-nine compensable weeks following determination of such offense or
offenses, during which weeks such person would otherwise have been eligible to receive
benefits. For the purposes of section 31-231b, such person shall be deemed to have
received benefits for such forfeited weeks. This penalty shall be in addition to any other
applicable penalty under this section and in addition to the liability to repay any moneys
so received by such person and shall not be confined to a single benefit year.
(3) Any person charged with the fraudulent receipt of benefits or the making of a
fraudulent claim, as provided in this subsection, shall be entitled to a hearing before the
administrator, or a deputy or representative designated by the administrator. Notice of
the time and place of such hearing, and the reasons for such hearing, shall be given to
the person not less than five days prior to the date appointed for such hearing. The
administrator shall determine, on the basis of facts found by the administrator, whether
or not a fraudulent act subject to the penalties of this subsection has been committed
and, upon such finding, shall fix the penalty for any such offense according to the provisions of this subsection. Any person determined by the administrator to have committed
fraud under the provisions of this section shall be liable for repayment to the administrator of the Unemployment Compensation Fund for any benefits determined by the administrator to have been collected fraudulently, as well as any other penalties assessed
by the administrator in accordance with the provisions of this subsection. Until such
liabilities have been met to the satisfaction of the administrator, such person shall forfeit
any right to receive benefits under the provisions of this chapter. Notification of such
decision and penalty shall be mailed to such person's last known address and shall be
final unless such person files an appeal not later than twenty-one days after the mailing
date of such notification. If the last day for filing an appeal falls on any day when the
offices of the Employment Security Division are not open for business, such last day
shall be extended to the next business day. Such appeal shall be heard by a referee in
the same manner provided in section 31-242 for an appeal from the decision of an
examiner on a claim for benefits. The manner in which such appeals shall be heard and
appeals taken therefrom to the board of review and then to the Superior Court, either
by the administrator or the claimant, shall be in accordance with the provisions set forth
in section 31-249 or 31-249b, as the case may be. Any determination of overpayment
made under this subsection which becomes final on or after October 1, 1995, may be
enforced in the same manner as a judgment of the Superior Court when the claimant
fails to pay according to the claimant's repayment schedule. The court may issue execution upon any final determination of overpayment in the same manner as in cases of
judgments rendered in the Superior Court; and upon the filing of an application to the
court for an execution, the administrator shall send to the clerk of the court a certified
copy of such determination.
(c) Any person, firm or corporation who knowingly employs a person and pays
such employee without declaring such payment in the payroll records shall be guilty of
a class A misdemeanor.
(d) If, after investigation, the administrator determines that there is probable cause
to believe that the person, firm or corporation has wilfully failed to declare payment of
wages in the payroll record, the administrator shall provide an opportunity for a hearing
on the matter. If a hearing is requested, it shall be conducted by the administrator, or a
deputy or representative designated by him. Notice of the time and place of such hearing,
and the reasons therefor, shall be given to the person, firm, or corporation not less than
five days prior to the date appointed for such hearing. If the administrator determines,
on the basis of the facts found by him, that such nondeclaration occurred and was wilful,
the administrator shall fix the payments and penalties in accordance with the provisions
of subsection (e) of this section. Such person, firm or corporation may appeal to the
superior court for the judicial district of Hartford or for the judicial district in which the
employer's principal place of business is located. Such court shall give notice of a time
and place of hearing to the administrator. At such hearing the court may confirm or
correct the administrator's determination. If the administrator's determination is confirmed, the cost of such proceedings, as in civil actions, shall be assessed against such
person, firm or corporation. No costs shall be assessed against the state on such appeal.
(e) If the administrator determines that any person, firm or corporation has wilfully
failed to declare the payment of wages on payroll records, the administrator may impose
a penalty of ten per cent of the total contributions past due to the administrator, as
determined pursuant to section 31-270. Such penalty shall be in addition to any other
applicable penalty and interest under section 31-266. In addition, the administrator may
require the person, firm or corporation to make contributions at the maximum rate provided in section 31-225a for a period of one year following the determination by the
administrator concerning the wilful nondeclaration. If the person, firm or corporation
is paying or should have been paying, the maximum rate at the time of the determination,
the administrator may require that such maximum rate continue for a period of three
years following the determination.
(f) Any person who knowingly makes a false statement or representation or fails
to disclose a material fact in order to obtain, increase, prevent or decrease any benefit,
contribution or other payment under this chapter, or under any similar law of another
state or of the United States in regard to which this state acted as agent pursuant to an
agreement authorized by section 31-225, whether to be made to or by himself or any
other person, and who receives any such benefit, pays any such contribution or alters
any such payment to his advantage by such fraudulent means (1) shall be guilty of a
class A misdemeanor if such benefit, contribution or payment amounts to five hundred
dollars or less or (2) shall be guilty of a class D felony if such benefit, contribution or
payment amounts to more than five hundred dollars. Notwithstanding the provisions of
section 54-193, no person shall be prosecuted for a violation of the provisions of this
subsection committed on or after October 1, 1977, except within five years next after
such violation has been committed.
(g) Any person, firm or corporation who knowingly fails to pay contributions or
other payments due under this chapter shall be guilty of a class A misdemeanor. Notwithstanding the provisions of section 54-193, no person shall be prosecuted for a violation
of the provisions of this subsection committed on or after October 1, 1987, except within
five years after such violation has been committed.
(h) Any person who knowingly violates any provision of this chapter for which no
other penalty is provided by law shall be fined not more than two hundred dollars or
imprisoned not more than six months or both.
(i) Any person who wilfully violates any regulation made by the administrator or
the board under the authority of this chapter, for which no penalty is specifically provided, shall be fined not more than two hundred dollars.
(j) All interest payments collected by the administrator under subsection (b) of this
section shall be deposited in the Employment Security Administration Fund.
(1949 Rev., S. 7543; 1949, S. 3089d; 1953, S. 3090d, 3091d; 1967, P.A. 790, S. 20, 21; P.A. 74-229, S. 21, 22; 74-339, S. 32, 33, 36; P.A. 77-227; 77-426, S. 14, 19; P.A. 78-287; 78-331, S. 14, 41, 58; P.A. 79-42; 79-67, S. 1, 2; 79-187,
S. 4; P.A. 81-318, S. 3, 4, 8; P.A. 82-132; P.A. 87-364, S. 7, 8; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S.
4, 7, 8; P.A. 95-220, S. 4-6; 95-323, S. 1, 2, 8; P.A. 04-60, S. 1, 2; P.A. 05-288, S. 139.)
History: 1967 act amended Subsecs. (b) and (e) to exclude Sundays and holidays from period allowed for appeal and
to specify that if last day falls on day when employment security division offices are closed an extension is allowed and
substituted Sec. 31-231b for Sec. 31-232 in Subsec. (e); P.A. 74-229 made person who receives benefits but who "by virtue
of a retroactive monetary or nonmonetary determination" is disqualified from receiving benefits liable for repayment under
Subsec. (b) and increased time for filing appeal from 7 to 14 days but deleted exclusion for Sundays and holidays; P.A.
74-339 replaced references to unemployment commission and commissioners with references to the board and substituted
reference to Sec. 31-249b for reference to Sec. 31-249 in Subsec. (e); P.A. 77-227 imposed penalty on those who receive
benefits, etc. as a result of fraudulent means in Subsec. (a) and changed penalty from $200 maximum fine and/or 6 months'
maximum imprisonment to penalty for Class A misdemeanor, inserted new Subsec. (c) re employers' violations and
relettered former Subsecs. (c) to (e) accordingly; P.A. 77-426 imposed five-year limitation on prosecution actions in Subsec.
(a), added references to penalty in Subsec. (e), revised appeal procedure so that referee hears case first rather than the board
and restored reference to Sec. 31-249; P.A. 78-287 made penalty applicable to those who pay fraudulent contributions or
alter payments to their advantage and added provision making violator in cases involving fraudulent benefit, etc. of more
than $500 subject to penalty for a Class D felony; P.A. 78-331 made technical changes; P.A. 79-42 rephrased violations
in Subsec. (a) for clarity; P.A. 79-67 added Subsec. (c)(2) re contributions at maximum rate and amended Subsec. (f) to
change maximum period of forfeited benefits from 20 to 39 compensable weeks or "more than six years beyond the
expiration of the benefit year during which the offense occurred" rather than "beyond 21 months after the termination of
the calendar quarter during which the offense was discovered"; P.A. 79-187 amended Subsec. (b) to include provisions re
persons whose receipt of funds in error was not due to fraud, etc. and re partial repayment or waiver of repayment, made
examiner rather than administrator responsible for determination, modified appeal procedure so that appeals are made first
to board of review and then to superior court and replaced references to commissioners with references to referees; P.A.
81-318 amended Subsec. (b) to increase the time limit for appeal from 14 to 21 days after notice mailed and amended
Subsec. (f) to increase the time limit for appeal from fourteen to 21 days after mailing of notice of decision and penalty;
P.A. 82-132 rearranged the section's provisions to make them more comprehensible, and provided in Subsec. (b) that
100% of the benefit entitlement shall be deducted from benefits paid to a person found to have improperly received benefits,
by fraud, wilful misrepresentation or wilful nondisclosure, until the amount overpaid has been recouped; P.A. 87-364
inserted new Subsec. (e) providing that knowingly failing to pay contributions due under the chapter constitutes a class A
misdemeanor, and that any prosecution of the crime must take place within five years after the violation and relettered
former Subsecs. (e) and (f) accordingly; P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial
district of Hartford", effective September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September
1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September
1, 1996, effective June 14, 1993; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to
September 1, 1998, effective July 1, 1995; P.A. 95-323 amended Subsec. (b) to allow an appeal to be heard directly by a
referee in the same manner as an appeal of a decision of an examiner and deleted the requirement that the administrator
present all documents, including the finding of facts for a referee's decision, effective July 10, 1995, and further amended
Subsecs. (a) and (b) to specify methods available for recoupment of overpayments and procedures for enforcement of
wage executions and to require annual report of uncollectible claims to General Assembly, changing time lapse for consideration of claim as uncollectible from six to eight years and deleting a six-year limit re penalties in Subsec. (b), further
amended Subsec. (b) to specify that perpetrators may not receive benefits until repayment of overpayment and penalties
has been made in full, amended Subsec. (c) to eliminate the contribution schedule re employers' violations, inserted new
provisions in Subsec. (d) re hearing and penalty provisions for employers who wilfully fail to declare payment of wages
in the payroll record, inserted new Subsec. (e) re additional penalties imposed for violations of wilful nondeclaration and
relettered former Subsecs. (d) to (g), inclusive, as Subsecs. (f) to (i), inclusive, effective October 1, 1995, and applicable
to any separation of employment occurring on or after that date; P.A. 04-60 amended Subsec. (b) to make technical changes,
to establish interest penalty for overpayments determined on or after July 1, 2005, in Subdiv. (1), to reduce minimum
number of weeks of benefit forfeiture from two to one in Subdiv. (2), and to revise notification and appeal procedures in
Subdiv. (3), and added Subsec. (j) requiring deposit of all interest penalty payments collected pursuant to Subsec. (b) into
Employment Security Administration Fund, effective July 1, 2004; P.A. 05-288 made a technical change in Subsec. (b)(2),
effective July 13, 2005.
See Sec. 52-570e re action for damages resulting from violation of chapter.
Allows for opening decision to recover funds paid out to unqualified recipients, limited to one year statute of limitation ...
permitted by the administrative nature. 161 C. 362.
Cited. 11 CS 340. Cited. 21 CS 19. Recovery of overpayment, when. 30 CS 123.
Subsec. (b):
Cited. 171 C. 316.
Subsec. (d):
Cited re affect on the speed and fairness of the resolution of contested claims. 175 C. 269. Cited. 220 C. 225.
Subsec. (e):
Cited re affect on the speed and fairness of the resolution of contested claims. 175 C. 269.