UNEMPLOYMENT INSURANCE - OVERPAYMENTS

Now in order to help us understand what happens in the event of an overpayment, let us first look at the statute, New York Labor Law Section 597:

" 597. Initial determination. 1. Issuance. The validity of the claim
and the amount of benefits payable to the claimant shall be determined
in accordance with the regulations and procedure established by the
commissioner and, when such determination is issued by the commissioner,
it shall be deemed the initial determination of the claim.
2. Obtaining information necessary for determinations. (a) When filing
an original claim, each claimant shall furnish to the commissioner all
information which the commissioner shall require concerning his or her
prior employment.
(b) Whenever a claimant's base period includes a completed calendar
quarter for which a wage data report is not due or has not been received
and the claimant provides information as required by the commissioner,
the commissioner shall determine such claimant's entitlement and benefit
rate using the information the claimant provided for such quarter.
However, in those instances where the claimant is unable to provide such
information to the commissioner's satisfaction, the commissioner may
request the employer to provide the amount of remuneration paid to such
individual. The commissioner shall notify each base period employer upon
the establishment of a valid original claim, of such claim. If an
employer provides new or corrected information in response to the
initial notice of monetary entitlement, adjustments to the claimant's
benefit rate and adjustments to the employer's experience rating account
shall be prospective as of the date such information was received by the
department.
(c) Notwithstanding paragraph (b) of this subdivision, adjustments to
the claimant's benefit rate and adjustment to the experience rating
charges to the employers' accounts will be retroactive to the beginning
of the benefit claim in the following circumstances:
(i) the new or corrected information results in a higher benefit rate,
or
(ii) the new or corrected information results in the claimant's
failure to establish a valid original claim, or
(ii) the amount of the previously established benefit rate was based
upon the claimant's willful false statement or representation.
3. Limitation on review of determinations. Any determination regarding
a benefit claim may, in the absence of fraud or wilful
misrepresentation, be reviewed only within one year from the date it is
issued because of new or corrected information, or, if the review is
based thereon, within six months from a retroactive payment of
remuneration, provided that no decision on the merits of the case has
been made upon hearing or appeal. Such review shall be conducted and a
new determination issued in accordance with the provisions of this
article and regulations and procedure prescribed thereunder with respect
to the adjudication and payment of claims, including the right of
appeal.
4. Effect of review. Whenever a new determination in accordance with
the preceding subdivision or a decision by a referee, the appeal board,
or a court results in a decrease or denial of benefits previously
allowed, such new determination or decision, unless it shall be based
upon a retroactive payment of remuneration, shall not affect the rights
to any benefits already paid under the authority of the prior
determination or decision provided they were accepted by the claimant in
good faith and the claimant did not make any false statement or
representation and did not wilfully conceal any pertinent fact in
connection with his or her claim for benefits."