Illinois General Assembly - Illinois Compiled Statutes

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820 ILCS 405/900

(820 ILCS 405/900) (from Ch. 48, par. 490)

Sec. 900. Recoupment.)

A. Whenever an individual has received any
sum as benefits for which he or she is found to have been ineligible, the individual must be provided written notice of his or her appeal rights, including the ability to request waiver of any recoupment ordered and the standard for such waiver to be granted. Thereafter, the
amount thereof may be recovered by suit in the name of the People of the
State of Illinois, or, from benefits payable to him, may be recouped:

1. At any time, if, to receive such sum, he

knowingly made a false statement or knowingly failed to disclose a material fact.

2. Within 3 years from any date prior to January 1,

1984, on which he has been found to have been ineligible for any other reason, pursuant to a reconsidered finding or a reconsidered determination, or pursuant to the decision of a Referee (or of the Director or his representative under Section 604) which modifies or sets aside a finding or a reconsidered finding or a determination or a reconsidered determination; or within 5 years from any date after December 31, 1983, on which he has been found to have been ineligible for any other reason, pursuant to a reconsidered finding or a reconsidered determination, or pursuant to the decision of a Referee (or of the Director or his representative under Section 604) which modifies or sets aside a finding or a reconsidered finding or a determination or a reconsidered determination.  Recoupment pursuant to the provisions of this paragraph from benefits payable to an individual for any week may be waived upon the individual's request, if the sum referred to in paragraph A was received by the individual without fault on his part and if such recoupment would be against equity and good conscience.  Such waiver may be denied with respect to any subsequent week if, in that week, the facts and circumstances upon which waiver was based no longer exist.

Recovery by suit in the name of the People of the State of Illinois, recoupment pursuant to paragraph 2 of this subsection A from benefits payable to an individual for any week, and, notwithstanding any provision to the contrary in the Illinois State Collection Act of 1986, withholding pursuant to subsection E shall be permanently waived if the sum referred to in this subsection A was received by the individual without fault on his or her part and if such recoupment would be against equity and good conscience, and the sum referred to in this subsection A was received by the individual on or after March 8, 2020, but prior to the last day of a disaster period established by the gubernatorial disaster proclamation in response to COVID-19, dated March 9, 2020, and any consecutive gubernatorial disaster proclamation in response to COVID-19. To be eligible for permanent waiver under this paragraph, an individual must request a waiver pursuant to this paragraph within 45 days of the mailing date of the notice from the Department that the individual may request a waiver. A determination under this paragraph may be appealed to a Referee within the time limits prescribed by Section 800 for an appeal from a determination. Any such appeal, and any appeal from the Referee's decision thereon, shall be governed by the applicable provisions of Sections 801, 803, 804, and 805. This paragraph shall not apply with respect to benefits that are received pursuant to any program that the Department administers as an agent of the federal government and for which the individual is found to have been ineligible.

B. Whenever the claims adjudicator referred to in Section 702
decides that any sum received by a claimant as benefits shall be
recouped, or denies recoupment waiver requested by the claimant, he shall
promptly notify the claimant of his decision and the
reasons therefor.  The decision and the notice thereof shall state the
amount to be recouped, the weeks with respect to which such sum was
received by the claimant, and the time within which it may be recouped and,
as the case may be, the reasons for denial of recoupment waiver.
The claims adjudicator may reconsider his decision within one year after
the date when the decision was made. Such decision or reconsidered
decision may be appealed to a Referee within the time limits prescribed
by Section 800 for appeal from a determination.  Any such appeal, and
any appeal from the Referee's decision thereon, shall be governed by the
applicable provisions of Sections 801, 803, 804 and 805.  No recoupment
shall be begun until the expiration of the time limits prescribed by
Section 800 of this Act or, if an appeal has been filed, until the
decision of a Referee has been made thereon affirming the decision of
the Claims Adjudicator.

C. Any sums recovered under the provisions of this Section shall be
treated as repayments to the Department of sums improperly obtained by the
claimant.

D. Whenever, by reason of a back pay award made by any governmental
agency or pursuant to arbitration proceedings, or by reason of a payment
of wages wrongfully withheld by an employing unit, an individual has
received wages for weeks with respect to which he has received benefits,
the amount of such benefits may be recouped or otherwise recovered as
herein provided.  An employing unit making a back pay award to an
individual for weeks with respect to which the individual has received
benefits shall make the back pay award by check payable jointly to the
individual and to the Department.

E. The amount recouped pursuant to paragraph 2 of subsection A from
benefits payable to an individual for any week shall not exceed 25% of
the individual's weekly benefit amount.

In addition to the remedies provided by this Section, when an
individual has received any sum as benefits for which he is found to be
ineligible, the Director may request the Comptroller to withhold such sum
in accordance with Section 10.05 of the State Comptroller Act and the Director may request the Secretary of the Treasury to withhold such sum to the extent allowed by and in accordance with Section 6402(f) of the federal Internal Revenue Code of 1986, as amended.  Benefits
paid pursuant to this Act shall not be subject to such withholding. Where the Director requests withholding by the Secretary of the Treasury pursuant to this Section, in addition to the amount of benefits for which the individual has been found ineligible, the individual shall be liable for any legally authorized administrative fee assessed by the Secretary, with such fee to be added to the amount to be withheld by the Secretary.

(Source: P.A. 102-26, eff. 6-25-21.)