KRS 341.145: Reciprocal arrangements -- Recovery of benefit overpayments.

(1) The secretary of the Education and Labor Cabinet may enter into

arrangements with the appropriate agencies of other states or of the federal

government, or both, for the purpose of assisting the secretary and such

agencies in the payment of benefits and the furnishing of services to

unemployed or underemployed workers. Such arrangements may provide that

the respective agencies shall, for and on behalf of each other, act as agents in

effecting registrations for work, notices of unemployment, and any other

certifications or statements relating to a worker's claim for benefits; in making

investigations, taking depositions, holding hearings, or otherwise securing

information relating to benefit eligibility and payments; and in such other

matters as the secretary considers suitable in effectuating the purpose of these

administrative arrangements.

(2) The secretary may enter into arrangements with the appropriate agencies of

other states or the federal government whereby workers performing services in

this and other states for a single employing unit under circumstances not

specifically provided in KRS 341.050, or under similar provisions in the

unemployment compensation laws of such other states, shall be deemed to be

engaged in employment performed entirely within this state or within one of

such other states.

(3) (a) The secretary shall participate in any arrangements for the payment of

benefits on the basis of combining an individual's wages and employment

covered under this chapter with his wages and employment covered

under the unemployment compensation laws of other states or the federal

government which are approved by the United States Secretary of Labor

in consultation with the state unemployment compensation agencies as

reasonably calculated to assure the prompt and full payment of benefits in

such situations and which include provisions for applying the base period

of a single state law to a claim involving the combining of an individual's

wages and employment covered under two (2) or more state

unemployment compensation laws, and avoiding the duplicate use of

wages and employment by reason of such combining. Reimbursements

to another state or the federal government, paid from the fund pursuant to

this subsection, shall be deemed to be benefits for the purposes of this

chapter and charged to contributory employers' reserve accounts and

reimbursing employers' accounts in accordance with the provisions of

KRS 341.530(2) and (3) to the extent of calculations made on wages paid

during the base period established by KRS 341.090 and wages paid after

such base period; provided, however, benefits based on a period previous

to the base-wage period established by KRS 341.090 shall be charged to

the pooled account for contributing employers only. Provided, that if the

Secretary of Labor determines that the charging of reimbursements

provided above is inconsistent with the requirements of the Federal

Unemployment Tax Act, charges of such reimbursements shall then be

made in accordance with regulations prescribed by the secretary.

(b) In order that such reciprocal arrangements, when entered into, may be

effectuated, wages for insured work under an employment security law of

another state or of the federal government shall be deemed to be wages

earned in covered employment from a subject employer for the purpose

of determining his benefits under this chapter.

(4) Notwithstanding any other provision of this chapter, benefits shall not be

denied or reduced to an individual solely because he files a claim in another

state (or a contiguous country with which the United States has an agreement

with respect to unemployment compensation) or because he resides in another

state (or such a contiguous country) at the time he files a claim for benefits.

(5) To the extent permissible under the laws and Constitution of the United States,

the secretary is authorized to enter into or cooperate in arrangements or

reciprocal agreements with appropriate and duly authorized agencies of other

states or the United States Secretary of Labor or both, whereby:

(a) Overpayments of unemployment benefits, as determined under this

chapter, shall be recoverable (after due notice and opportunity for appeal

has been provided to the claimant) by offset from unemployment benefits

otherwise payable under the unemployment compensation law of another

state, in either the current or any subsequent benefit year, in an amount

equivalent to the amount of overpayment determined under this chapter,

provided the Department of Workforce Development certifies to the other

state the facts involved and that the claimant is liable to repay the benefits

and the office requests the other state to recover the benefits; and

(b) Overpayments of unemployment benefits, as determined under the

unemployment compensation law of another state, shall be recoverable

(after such state has provided due notice and opportunity for appeal to the

claimant) by offset from unemployment benefits otherwise payable under

this chapter, in either the current or subsequent benefit year, in an

amount equivalent to the amount of overpayment determined by such

other state, provided such state certifies to the office the facts involved

and that the individual is liable to repay the benefits and the state

requests the office to recover the benefits; and

(c) Provided there is in effect a reciprocal agreement between this state and

the United States Secretary of Labor, as authorized by Section 303(g)(2)

of the Social Security Act, the overpayment of unemployment benefits or

allowances for unemployment provided under a federal program

administered by this state shall be recoverable by offset from benefits

otherwise payable under this chapter or any such federal program. Such

agreement shall also suffice to permit the offset from unemployment

benefits, otherwise payable under a federal program administered by this

state, the overpayment of unemployment benefits paid under this chapter.

If another state also has in effect a like agreement with the United States

Secretary of Labor, then these provisions for cross-offset of state and federal

unemployment benefits shall apply to benefits otherwise payable under this

chapter, the laws of the other state or any federal unemployment program

administered by either state.