PA UC appeal decision REVERSED - Do I have to repay benefits after 402(e) ineligibility ruling?
Just had my appeal hearing last week and got a decision letter today that's freaking me out. It says 'The Separation Determination issued by UC Service Center is REVERSED; the Claimant is INELIGIBLE FOR benefits under Section 402(e) of the Pennsylvania UC Law effective May 7, 2023.' I've been receiving benefits since May and it's now January 2025! Does this mean I have to pay back EVERYTHING? That's over $14,000! I was let go because of 'performance issues' but my employer never documented anything - that's why I appealed when they initially denied me. Now I'm even more screwed. Has anyone dealt with this before? Will they really make me pay it all back? I'm barely keeping my head above water as it is.
17 comments
CosmicCruiser
ya unfortunately if u lost the appeal they will want all that money back. happened to my brother in law last year. they send u an overpayment notice and u gotta either pay up or try to get a payment plan.
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Diego Vargas
•Oh god. I'm literally going to be homeless. How long does it take for them to send the overpayment notice?
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Anastasia Fedorov
I need to correct some information here. Based on your situation, you should understand a few important points: 1) Yes, a reversal under Section 402(e) - willful misconduct - means you're not eligible for the benefits you received. 2) BUT - you have 15 days to appeal THIS decision to the Unemployment Compensation Board of Review (UCBR). This is a higher level appeal. 3) During that appeal, no collection actions will be taken. 4) Even if you ultimately lose, you can request a "fault overpayment waiver" if you can demonstrate financial hardship and that you received the benefits without fraud or fault. Don't panic yet. File that UCBR appeal immediately and specifically address why your actions didn't constitute willful misconduct. Performance issues alone often don't qualify as willful misconduct unless your employer can prove you deliberately violated policies or rules.
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Diego Vargas
•Thank you so much for this detailed response. So I can appeal this decision again? I didn't know there was another level! I'll definitely file that UCBR appeal right away. My employer just had vague complaints about me not meeting targets, but there was never any written warning or anything concrete.
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Sean Doyle
This EXACT thing happened to me!!! I got a job at a call center and they fired me after 3 months for not meeting metrics but I was never trained properly. I won my initial UC claim but then they appealed and I lost at the hearing. I freaked out just like you!!
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Diego Vargas
•What happened after that? Did you have to pay everything back? Did you try appealing to the UCBR like the other person suggested?
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Sean Doyle
Yeah so I appealed to the UCBR like the other person said and I actually won! The key was that I brought evidence showing that other new employees had similar performance issues and that the company didn't follow their own progressive discipline policy with me. If you can show they didn't give you proper warning or chance to improve that helps a LOT with the willful misconduct thing.
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Zara Rashid
I had a similar situation but I lost my UCBR appeal too. I ended up with a $9,200 overpayment. BUT I applied for a fault overpayment waiver (Form UC-1725) due to financial hardship and they approved it! I didn't have to pay anything back. The key is proving that paying it back would cause severe hardship AND that you didn't intentionally misrepresent anything when filing. Definitely worth trying if your second appeal doesn't work out.
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Diego Vargas
•This gives me a little hope. My rent already takes up 60% of my income and I have medical bills too. I'll definitely look into that waiver if I need to. Thanks for sharing your experience!
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Luca Romano
I'd also recommend trying to reach PA UC immediately to understand exactly what will happen next and get proper guidance for your specific situation. The regular phone lines are nearly impossible to get through, though. When I was dealing with my overpayment issue last year, I used a service called Claimyr (claimyr.com) to get through to an actual UC rep within about 20 minutes instead of calling for days. They have a video that shows how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. Getting clarification directly from UC was crucial in my case.
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Nia Jackson
•dont waste ur $$ on this claimyr thing... just keep calling the UC number and pressing the right options. if u start calling right at 8am you'll get through eventually
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NebulaNova
THE PA UC SYSTEM IS DESIGNED TO SCREW OVER WORKERS!!! They approve you, let you collect for months, THEN suddenly decide you were "ineligible" the whole time?? TOTAL GARBAGE!! And they expect you to survive without that money AND somehow pay back thousands?? The whole system is rigged against us!!
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Anastasia Fedorov
•While I understand your frustration, it's important to note that the initial determination and appeals are separate processes with different adjudicators reviewing the case. Sometimes employers provide additional evidence at the appeal hearing that wasn't available during the initial determination. The system has flaws, but it's not deliberately designed to trick people into overpayments.
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Anastasia Fedorov
To address your original question more directly: Yes, technically when your benefits are reversed due to ineligibility, you would normally need to repay the benefits received. However, there are multiple options to address this: 1. Appeal to UCBR within 15 days (highest priority) 2. If that fails, request a fault overpayment waiver 3. If waiver is denied, request a payment plan 4. In extreme cases, bankruptcy can discharge some UC overpayments The key thing now is to act quickly on that UCBR appeal. Focus on why your performance issues weren't "willful misconduct" - which legally means a deliberate violation of employer rules or standards, not just failing to meet expectations. If your employer never gave you formal warnings or a performance improvement plan, definitely highlight that in your appeal.
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Diego Vargas
•Thank you again for this information. I'm working on my UCBR appeal right now. Just to clarify - during this appeal process, they won't start trying to collect the overpayment yet, right? And is there a specific form I need to fill out for this appeal?
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Anastasia Fedorov
Correct - they won't start collection actions while your appeal is pending. You need to file a Petition for Appeal to the UCBR. You should have received instructions with your referee decision, but if not, you can find the form on the PA UC website or simply write a letter including: - Your name, address, and last 4 of SSN - The referee's decision number you're appealing - The date of that decision - The reason you're appealing (focus on why your actions weren't willful misconduct) Send it to the address on your referee decision. Make sure it's postmarked within 15 days of the decision date! Keep proof of mailing.
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Diego Vargas
•This is incredibly helpful. I'm going to get this done today. Fingers crossed that the UCBR sees things differently. I'll update here when I hear something back. Thank you so much for taking the time to explain everything!
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