{"data":{"id":"us-ky/krs-341.415","jurisdiction":"us-ky","citation":"KRS 341.415","heading":"Recovery and recoupment  limitations.","body":"(1) (a) Any person who has received any sum as benefits under this chapter or\nany other state's unemployment insurance statutes or any United States\nDepartment of Labor unemployment insurance benefit program, providing\nthe secretary has signed a reciprocal agreement with such other state or\nthe United States Department of Labor as provided in KRS 341.145, while\nany condition for the receipt of such benefits was not fulfilled in his case,\nor while he was disqualified from receiving benefits, or if he has received\nbenefits in weeks for which he later receives a back pay award, shall, in\nthe discretion of the secretary, either have such sum deducted from any\nfuture benefits payable to him under this chapter or repay the Office of\nUnemployment  Insurance for the fund a sum  equal to the amount so\nreceived by him.\n(b) If after due notice, the recipient of such sum fails to remit or arrange for\nremittance of the sum, the sum may be collected in the manner provided\nin KRS  341.300(2) for collection of past-due contributions and any sums\nso collected shall be credited to the pooled account or the appropriate\nreimbursing employer account.\n(c) The appropriate reimbursing employer account shall not receive credit for\nsums  collected under  this subsection or KRS  341.550(2)(b) if a\ndetermination has  been  made  that an  improper benefit payment\nestablished after October 21, 2013, was due to the reimbursing employer,\nor an agent of the employer, in accordance with the provisions of KRS\n341.530(4)(a) and (b). The sums collected shall be credited to the pooled\naccount.\n(d) If any benefit was  paid as a result of office error as defined by\nadministrative regulation, there shall be no recoupment or recovery of an\nimproperly paid benefit, except by deduction from any future benefits\npayable  to him  under this chapter. For purposes of this section,\noverpayments as a result of a reversal of entitlement to benefits in the\nappeal or review process shall not be construed to be the result of office\nerror.\n(2) At or after the commencement  of an action under subsection (1) of this section,\nattachment may  be had against property of the recipient of improperly paid\nbenefits in the manner provided in KRS 341.300(3).\n(3) A  lien on a parity with state, county, and municipal ad valorem tax liens, is\nhereby created in favor of the office upon all property of any recipient of\nimproperly paid benefits. This lien shall be for a sum equal to the amount of the\noverpayment  finally determined and shall continue until the amount of the\noverpayment plus any subsequent assessment of additional improperly paid\nbenefits, penalty, interest, and fees are fully paid. The lien shall commence\nfrom such time as the recipient has exhausted or abandoned  the appeal\nprocedure set forth in this chapter and the amount of the overpayment is finally\nfixed. A notice of lien may be filed in the same manner as that provided for in\nKRS  341.310.\n(4) Any  amount paid to a person as benefits, which he has been found liable to\nrepay or to have deducted from future benefits under subsections (1), (2), and\n(3) of this section, which has neither been repaid nor so deducted within a\nperiod of five (5) years following the last day of the benefit year within which it\nwas  paid, may  be deemed  to be uncollectible and shall be permanently\ncharged to the pooled account, except that if such payment was made  by\nreason of fraudulent representations, no future benefits shall be paid such\nperson within a period of ten (10) years of the last day of the benefit year within\nwhich  such payments  were made  at which time these amounts  may  be\ndeclared uncollectible. Nothing in this subsection shall be deemed  to affect\ncollection of improperly paid benefits pursuant to a judgment or other legal\nremedy.\n(5) In the event benefits have been  paid as a result of a false statement,\nmisrepresentation, or concealment of material information by a recipient of\nbenefits and have not been repaid by the recipient within one (1) calendar year\nfrom the date of the first notice, interest at the rate of one and five-tenths\npercent (1.5%) per month or any part thereof, shall be imposed on and added\nto the unpaid balance each successive month, providing due notice has been\ngiven to the recipient. Such interest shall be paid into the unemployment\ncompensation administration account.\n(6) A recipient of benefits paid as a result of a false statement, misrepresentation,\nor concealment of material information by the recipient shall be assessed a\nfifteen percent (15%) penalty of the amount of improperly paid benefits. The\npenalty under this subsection shall be collected in the same  manner  as\nimproperly paid benefits in this section and paid into the unemployment trust\nfund.\n(7) The  deduction from future benefits specified in subsection (1) of this section\nshall be limited to twenty-five percent (25%) of the benefit amount otherwise\npayable under this chapter unless the overpayment resulted from a backpay\naward,  false statement, misrepresentation, or concealment  of material\ninformation by a recipient of benefits. In these instances, the rate of deduction\nshall be one hundred percent (100%). The rate of deduction from benefits\npayable by another state or the United States of America shall be determined\nby the applicable state or federal statute.","path":["KRS Chapter 341"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52454","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:29Z","sha256":"e58b28896adbdb600b7a51ec94c2728cce1967c7be0b76c75a388c229a7b79b9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-341.414","next":"us-ky/krs-341.416"},"notice":"GroundRules: Original legal text. Not legal advice."}