AN ACT Relating to
recovery of unemployment insurance overpayments; amending RCW 50.20.190;
creating new sections; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 50.20.190 and 1993 c
483 s 13 are each amended to read as follows:
(1) An individual who
is paid any amount as benefits under this title to which he or she is not
entitled shall, unless otherwise relieved pursuant to this section, be liable
for repayment of the amount overpaid. The department shall issue an
overpayment assessment setting forth the reasons for and the amount of the
overpayment. The amount assessed, to the extent not collected, may be deducted
from any future benefits payable to the individual: PROVIDED, That in the
absence of a back pay award, a settlement affecting the allowance of
benefits, fraud, misrepresentation, or willful nondisclosure, every
determination of liability shall be mailed or personally served not later than
two years after the close of or final payment made on the individual's applicable
benefit year ((in)) for which the purported overpayment was made,
whichever is later, unless the merits of the claim are subjected to
administrative or judicial review in which event the period for serving the
determination of liability shall be extended to allow service of the
determination of liability during the six-month period following the final
decision affecting the claim.
(2) The commissioner
may waive an overpayment if the commissioner finds that said overpayment was
not the result of fraud, misrepresentation, willful nondisclosure, or fault
attributable to the individual and that the recovery thereof would be against
equity and good conscience: PROVIDED, HOWEVER, That the overpayment so waived
shall be charged against the individual's applicable entitlement for the
eligibility period containing the weeks to which the overpayment was attributed
as though such benefits had been properly paid.
(3) Any assessment
herein provided shall constitute a determination of liability from which an
appeal may be had in the same manner and to the same extent as provided for
appeals relating to determinations in respect to claims for benefits:
PROVIDED, That an appeal from any determination covering overpayment only shall
be deemed to be an appeal from the determination which was the basis for
establishing the overpayment unless the merits involved in the issue set forth
in such determination have already been heard and passed upon by the appeal
tribunal. If no such appeal is taken to the appeal tribunal by the individual
within thirty days of the delivery of the notice of determination of liability,
or within thirty days of the mailing of the notice of determination, whichever
is the earlier, said determination of liability shall be deemed conclusive and
final. Whenever any such notice of determination of liability becomes
conclusive and final, the commissioner, upon giving at least twenty days notice
by certified mail return receipt requested to the individual's last known
address of the intended action, may file with the superior court clerk of any
county within the state a warrant in the amount of the notice of determination
of liability plus a filing fee of five dollars. The clerk of the county where
the warrant is filed shall immediately designate a superior court cause number
for the warrant, and the clerk shall cause to be entered in the judgment docket
under the superior court cause number assigned to the warrant, the name of the
person(s) mentioned in the warrant, the amount of the notice of determination
of liability, and the date when the warrant was filed. The amount of the warrant
as docketed shall become a lien upon the title to, and any interest in, all
real and personal property of the person(s) against whom the warrant is issued,
the same as a judgment in a civil case duly docketed in the office of such
clerk. A warrant so docketed shall be sufficient to support the issuance of
writs of execution and writs of garnishment in favor of the state in the manner
provided by law for a civil judgment. A copy of the warrant shall be mailed to
the person(s) mentioned in the warrant by certified mail to the person's last
known address within five days of its filing with the clerk.
(4) On request of any
agency which administers an employment security law of another state, the
United States, or a foreign government and which has found in accordance with
the provisions of such law that a claimant is liable to repay benefits received
under such law, the commissioner may collect the amount of such benefits from
the claimant to be refunded to the agency. In any case in which under this
section a claimant is liable to repay any amount to the agency of another
state, the United States, or a foreign government, such amounts may be
collected without interest by civil action in the name of the commissioner
acting as agent for such agency if the other state, the United States, or the
foreign government extends such collection rights to the employment security
department of the state of Washington, and provided that the court costs be
paid by the governmental agency benefiting from such collection.
(5) Any employer who is
a party to a back pay award or settlement due to loss of wages shall, within
thirty days of the award or settlement, report to the department the amount of
the award or settlement, the name and social security number of the recipient
of the award or settlement, and the period for which it is awarded. When an
individual has been awarded or receives back pay, for benefit purposes the
amount of the back pay shall constitute wages paid in the period for which it
was awarded. For contribution purposes, the back pay award or settlement shall
constitute wages paid in the period in which it was actually paid. The
following requirements shall also apply:
(a) The employer shall
reduce the amount of the back pay award or settlement by an amount determined
by the department based upon the amount of unemployment benefits received by
the recipient of the award or settlement during the period for which the back
pay award or settlement was awarded;
(b) The employer shall
pay to the unemployment compensation fund, in a manner specified by the
commissioner, an amount equal to the amount of such reduction;
(c) The employer shall
also pay to the department any taxes due for unemployment insurance purposes on
the entire amount of the back pay award or settlement notwithstanding any
reduction made pursuant to (a) of this subsection;
(d) If the employer
fails to reduce the amount of the back pay award or settlement as required in
(a) of this subsection, the department shall issue an overpayment assessment
against the recipient of the award or settlement in the amount that the back
pay award or settlement should have been reduced; and
(e) If the employer
fails to pay to the department an amount equal to the reduction as required in
(b) of this subsection, the department shall issue an assessment of liability
against the employer which shall be collected pursuant to the procedures for
collection of assessments provided herein and in RCW 50.24.110.
(6) When an individual
fails to repay an overpayment assessment that is due and fails to arrange for
satisfactory repayment terms, the commissioner shall impose an interest penalty
of one percent per month of the outstanding balance. Interest shall accrue
immediately on overpayments assessed pursuant to RCW 50.20.070 and shall be
imposed when the assessment becomes final. For any other overpayment, interest
shall accrue when the individual has missed two or more of their monthly
payments either partially or in full. The interest penalty shall be used to
fund detection and recovery of overpayment and collection activities.
NEW SECTION. Sec.
2. If any part of this act
is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of
the conflict, and such finding or determination shall not affect the operation
of the remainder of this act. The rules under this act shall meet federal
requirements that are a necessary condition to the receipt of federal funds by
the state or the granting of federal unemployment tax credits to employers in
this state.
NEW SECTION. Sec.
3. This act applies to job
separations occurring after July 1, 1995.
NEW
SECTION. Sec. 4. This act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and shall take
effect immediately.
