R994-406-405. Future Eligibility in Fraud Cases

(1) A claimant is ineligible for unemployment insurance benefits or waiting week credit after a disqualification for fraud until any overpayment and penalty established in conjunction with the disqualification has been satisfied in full. (2) Wage credits earned by the claimant cannot be used to pay unemployment insurance benefits or transferred to another state until the overpayment and penalty are satisfied. (3) An outstanding overpayment or penalty may not be satisfied by deductions from benefit payments for weeks claimed after the disqualification period ends, as a claimant is precluded from receiving any future unemployment insurance benefits or waiting week credit as long as there is an outstanding fraud overpayment. (4) A claimant may file a new claim to preserve a particular benefit year. (5) An overpayment is considered satisfied as of the beginning of the week during which payment is received by the Department. (6) Unemployment insurance benefits will be allowed as of the effective date of a new claim if the claimant repays the overpayment and penalty within seven days of the date the notice of the outstanding overpayment and penalty is issued.