An Arizona unemployment overpayment notice means the state says it paid you benefits you were not entitled to — because of an agency or employer error (non-fault), because of something you reported wrong (fault), or because of a knowing false statement (fraud). Which of the three it is decides everything: whether a waiver is possible, whether penalty weeks attach, and how hard the state collects.
This guide explains the three kinds, the waiver and repayment rules, what Arizona can offset, and how to appeal the notice before the deadline. Verified against Arizona Department of Economic Security (DES) as of October 2026.
Arizona Unemployment Overpayment at a Glance
| Non-fault overpayment | Arizona DES classifies each overpayment on the Determination of Overpayment as Administrative, Non-fraud or Fraud. |
| Waiver available | Under A.R.S. 23-787(C), DES may waive all or part of an overpayment received without fault when repaying would be against equity and good conscience. |
| Offsets | Future unemployment benefits. |
| Penalty weeks | A.R.S. 23-778 disqualifies a person who knowingly makes a material false statement or withholds a material fact. |
| Days to appeal the notice | 15 days from the date of the Determination of Overpayment. DES may accept a late appeal in limited cases, such as DES error, misinformation, or the post office failing to deliver the notice. |
| Overpayment unit | Benefit Payment Control Unit: 602-364-4300. OARC (repayment): (844) 722-6247 or (602) 252-0024, option 1. |
In This Arizona Unemployment Overpayment Guide:
The Three Kinds of Arizona Unemployment Overpayment
Every Arizona unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Arizona DES classifies each overpayment on the Determination of Overpayment as Administrative, Non-fraud or Fraud. Administrative means agency or employer error with no fault by the claimant. Non-fraud means the claimant was at fault without intent, often from wrong or missing information. Fraud means the claimant knowingly made a false statement or hid a fact to get benefits (A.R.S. 23-787, 23-778).
Arizona Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Arizona DES classifies each overpayment on the Determination of Overpayment as Administrative, Non-fraud or Fraud. |
| Waiver rule | Under A.R.S. 23-787(C), DES may waive all or part of an overpayment received without fault when repaying would be against equity and good conscience. |
| Waiver form | After you request a waiver, DES sends a Confidential Financial Statement (Form UB092A) and decides the waiver from it. Waiver and overpayment information: https://des.az.gov/node/25678 |
| Pay online | DES Online Payment System at https://ptl.az.gov/app/desops/index.xhtml. It takes Visa, MasterCard, Discover or American Express and your 10-digit DES account number from your monthly billing statement. You can also pay by phone at (844) 722-6247 or (602) 252-0024, option 1, or by mail to the address on your notice. |
| Offsets | Future unemployment benefits. For non-fault overpayments, the weekly deduction is generally capped at 25 percent of the weekly benefit amount (A.R.S. |
| Penalty weeks | A.R.S. 23-778 disqualifies a person who knowingly makes a material false statement or withholds a material fact. |
| Fraud penalty | 15 percent of the fraud overpayment (A.R.S. 23-787(B)). The person cannot receive any benefits until the overpayment, penalty and interest are fully repaid. Fraud overpayments and penalties cannot be waived. |
| Interest | Yes. Interest is computed monthly on the unpaid balance (Ariz. Admin. Code R6-3-1812). A 2018 legislative summary of SB 1205 gives the rate as 10 percent on benefit overpayment debts. A waived overpayment also waives the interest due at the time of the waiver. Confirm the current rate with DES. |
| Appeal the notice within | 15 days from the date of the Determination of Overpayment. DES may accept a late appeal in limited cases, such as DES error, misinformation, or the post office failing to deliver the notice. days |
| Phone | Benefit Payment Control Unit: 602-364-4300. OARC (repayment): (844) 722-6247 or (602) 252-0024, option 1. |
Getting an Arizona Unemployment Overpayment Waived
Under A.R.S. 23-787(C), DES may waive all or part of an overpayment received without fault when repaying would be against equity and good conscience. DES guidance says only overpayments classified Administrative qualify; Fraud and Non-fraud do not. You can request a waiver in CACTUS by selecting “Request Waiver” next to the overpayment, or in writing with your Claimant ID, your reason and your signature.
Fraud overpayments and penalties may not be waived. Use After you request a waiver, DES sends a Confidential Financial Statement (Form UB092A) and decides the waiver from it. Waiver and overpayment information: https://des.az.gov/node/25678.
Arizona Unemployment Overpayment Repayment Plans and Offsets
If you cannot pay in full, ask the overpayment unit for a repayment plan in writing before the first offset. DES Online Payment System at https://ptl.az.gov/app/desops/index.xhtml. It takes Visa, MasterCard, Discover or American Express and your 10-digit DES account number from your monthly billing statement. You can also pay by phone at (844) 722-6247 or (602) 252-0024, option 1, or by mail to the address on your notice.
Future unemployment benefits. For non-fault overpayments, the weekly deduction is generally capped at 25 percent of the weekly benefit amount (A.R.S. 23-787(D)). DES also intercepts Arizona state tax refunds, and since 2011 it has referred fraud overpayments to the federal Treasury Offset Program to take federal tax refunds. DES guidance also lists wage garnishment as a possible collection tool. Yes. Interest is computed monthly on the unpaid balance (Ariz. Admin.
Code R6-3-1812). A 2018 legislative summary of SB 1205 gives the rate as 10 percent on benefit overpayment debts. A waived overpayment also waives the interest due at the time of the waiver. Confirm the current rate with DES.
Arizona Unemployment Overpayment Penalty Weeks and Fraud Penalties
A.R.S. 23-778 disqualifies a person who knowingly makes a material false statement or withholds a material fact. The disqualification covers the claim week and up to 51 weeks after it. Under Ariz. Admin. Code R6-3-54340, the penalty is generally 4 weeks for each week of unreported earnings (maximum 52), or 10 weeks for false statements about separation, eligibility, refusal of work or other issues.
📨 Get Free Unemployment And Workplace Rights Guides Alerts
Free · No spam · Unsubscribe anytime
15 percent of the fraud overpayment (A.R.S. 23-787(B)). The person cannot receive any benefits until the overpayment, penalty and interest are fully repaid. Fraud overpayments and penalties cannot be waived.
Appealing an Arizona Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 15 days from the date of the Determination of Overpayment. DES may accept a late appeal in limited cases, such as DES error, misinformation, or the post office failing to deliver the notice. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline. Our Arizona appeal guide covers the hearing.
Free Help With an Arizona Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Arizona handle unemployment overpayments every week, and the agency’s own phone line can explain the notice. Both are free; call before the appeal window closes. Find your nearest office through Legal Services Corporation.
Arizona uses three classifications: Administrative, Non-fraud and Fraud. Only Administrative overpayments are eligible for a waiver under DES guidance. An appeal can challenge the classification as well as the amount. DES treats each week of false claims as a separate false statement for criminal purposes.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Arizona fraud guide has the reporting steps and the corrected 1099-G.
Arizona — the bottom line
- An Arizona unemployment overpayment is one of three kinds — non-fault, fault or fraud — and the kind decides whether a waiver is possible.
- You can appeal an Arizona unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Arizona unemployment overpayment balances are offset against future benefits and tax refunds — ask for a repayment plan early.
Frequently Asked Questions
Do I have to pay back an unemployment overpayment in Arizona?
Usually yes, unless the state grants a waiver for a non-fault overpayment. Under A.R.S. 23-787(C), DES may waive all or part of an overpayment received without fault when repaying would be against equity and good conscience.
Can an unemployment overpayment be forgiven in Arizona?
Under A.R.S. 23-787(C), DES may waive all or part of an overpayment received without fault when repaying would be against equity and good conscience.
What are penalty weeks in Arizona?
A.R.S. 23-778 disqualifies a person who knowingly makes a material false statement or withholds a material fact.
Can Arizona take my tax refund for an unemployment overpayment?
Future unemployment benefits. For non-fault overpayments, the weekly deduction is generally capped at 25 percent of the weekly benefit amount (A.R.S.
Official Arizona Sources & Resources
- Arizona Department of Economic Security (DES): https://des.az.gov/services/employment/unemployment-individual
- Arizona unemployment statute: A.R.S. 23-601 et seq.
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Arizona unemployment overpayment guide was last verified against official Arizona sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Arizona Unemployment Guides
- Arizona Unemployment Appeal: Deadline and Hearing
- Arizona Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Arizona
- Unemployment Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Unemployment benefit amounts, deadlines and rules change — every figure here carries the date we verified it. Confirm the current figure and any deadline with your state unemployment agency before you act.