An Arkansas 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 Arkansas can offset, and how to appeal the notice before the deadline. Verified against Arkansas Division of Workforce Services as of October 2026.
Arkansas Unemployment Overpayment at a Glance
| Non-fault overpayment | Arkansas treats an overpayment as non-fraud when benefits were paid but you were not entitled to them, for example because of an agency error, an… |
| Waiver available | Since October 1, 2023, Arkansas can waive a non-fraud overpayment if you were not at fault and recovering the money would be against “equity and good… |
| Offsets | Arkansas can take the debt out of future unemployment benefits from Arkansas or another state, and can intercept your state income tax… |
| Penalty weeks | Under Ark. |
| Days to appeal the notice | You have 20 calendar days to appeal from the mailing date on the determination (Ark. Code Ann. § 11-10-524). The appeal must reach the Arkansas Appeal Tribunal or a local Division of Workforce Services office within that window. A late appeal is accepted only if the delay was caused by circumstances beyond your control. |
| Overpayment unit | 844-908-2178 (Benefit Payment Control) |
In This Arkansas Unemployment Overpayment Guide:
The Three Kinds of Arkansas Unemployment Overpayment
Every Arkansas unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Arkansas treats an overpayment as non-fraud when benefits were paid but you were not entitled to them, for example because of an agency error, an employer report or a later ruling that you were ineligible. It is a fraud overpayment when the Division finds you knowingly made a false statement or left out a material fact to get benefits (Ark. Code Ann. § 11-10-519 and § 11-10-532).
The determination notice should say which type applies.
Arkansas Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Arkansas treats an overpayment as non-fraud when benefits were paid but you were not entitled to them, for example because of an agency error, an employer report or a… |
| Waiver rule | Since October 1, 2023, Arkansas can waive a non-fraud overpayment if you were not at fault and recovering the money would be against “equity and good conscience” (Ark. |
| Offsets | Arkansas can take the debt out of future unemployment benefits from Arkansas or another state, and can intercept your state income tax refund. |
| Penalty weeks | Under Ark. Code Ann. § 11-10-519, a willful false statement on an initial or renewed claim disqualifies you until you have 20 weeks of work. |
| Fraud penalty | Arkansas adds a penalty of 50 percent of the fraud overpayment once the determination is final. The penalty drops to 15 percent if you repay the overpayment within 30 days of the date the determination was mailed (Ark. |
| Interest | Fraud overpayments earn interest at 10 percent a year once the determination is final, starting 30 days after the first billing statement (Ark. Code Ann. § 11-10-532). The Division has said it does not charge interest on non-fraud overpayments. Confirm your balance with Benefit Payment Control. |
| Appeal the notice within | You have 20 calendar days to appeal from the mailing date on the determination (Ark. Code Ann. § 11-10-524). The appeal must reach the Arkansas Appeal Tribunal or a local Division of Workforce Services office within that window. A late appeal is accepted only if the delay was caused by circumstances beyond your control. days |
| Phone | 844-908-2178 (Benefit Payment Control) |
Getting an Arkansas Unemployment Overpayment Waived
Since October 1, 2023, Arkansas can waive a non-fraud overpayment if you were not at fault and recovering the money would be against “equity and good conscience” (Ark. Code Ann. § 11-10-532(b)). Before that date, the overpayment generally had to be caused directly by a Division error. Waiver is not automatic. You generally have to ask for it in writing, and fraud overpayments cannot be waived.
Confirm how to ask with Benefit Payment Control.
Arkansas 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.
Arkansas can take the debt out of future unemployment benefits from Arkansas or another state, and can intercept your state income tax refund. It can also take your federal tax refund through the Treasury Offset Program, after mailing a Notice of Intent to Offset at least 60 days ahead. The Division’s TOP FAQ also lists wage garnishment and liens as collection tools.
Fraud overpayments earn interest at 10 percent a year once the determination is final, starting 30 days after the first billing statement (Ark. Code Ann. § 11-10-532). The Division has said it does not charge interest on non-fraud overpayments. Confirm your balance with Benefit Payment Control.
Arkansas Unemployment Overpayment Penalty Weeks and Fraud Penalties
Under Ark. Code Ann. § 11-10-519, a willful false statement on an initial or renewed claim disqualifies you until you have 20 weeks of work. A false statement on a weekly claim brings 13 weeks of disqualification plus 3 more weeks for each week falsified. For determinations made on or after October 1, 2023, a fraud overpayment of 1000 or more disqualifies you for 10 years.
Arkansas adds a penalty of 50 percent of the fraud overpayment once the determination is final. The penalty drops to 15 percent if you repay the overpayment within 30 days of the date the determination was mailed (Ark. Code Ann. § 11-10-532(a)(3)).
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Appealing an Arkansas Unemployment Overpayment Notice
You can appeal the overpayment determination itself within You have 20 calendar days to appeal from the mailing date on the determination (Ark. Code Ann. § 11-10-524). The appeal must reach the Arkansas Appeal Tribunal or a local Division of Workforce Services office within that window.
A late appeal is accepted only if the delay was caused by circumstances beyond your control. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline. Our Arkansas appeal guide covers the hearing.
Free Help With an Arkansas Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Arkansas 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.
Arkansas has three uncommon rules. The fraud penalty drops from 50 percent to 15 percent if you repay within 30 days of the mailing date. A fraud overpayment of 1000 or more brings a 10-year disqualification for determinations made on or after October 1, 2023. And the non-fault waiver test has applied since October 1, 2023, replacing the narrower “agency error only” rule.
The federal Treasury deducts a processing fee from each federal refund offset.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Arkansas fraud guide has the reporting steps and the corrected 1099-G.
Arkansas — the bottom line
- An Arkansas 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 Arkansas unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Arkansas 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 Arkansas?
Usually yes, unless the state grants a waiver for a non-fault overpayment. Since October 1, 2023, Arkansas can waive a non-fraud overpayment if you were not at fault and recovering the money would be against “equity and good conscience” (Ark. Code Ann. § 11-10-532(b)).
Can an unemployment overpayment be forgiven in Arkansas?
Since October 1, 2023, Arkansas can waive a non-fraud overpayment if you were not at fault and recovering the money would be against “equity and good conscience” (Ark. Code Ann. § 11-10-532(b)).
What are penalty weeks in Arkansas?
Under Ark. Code Ann. § 11-10-519, a willful false statement on an initial or renewed claim disqualifies you until you have 20 weeks of work.
Can Arkansas take my tax refund for an unemployment overpayment?
Arkansas can take the debt out of future unemployment benefits from Arkansas or another state, and can intercept your state income tax refund. It can also take your federal tax refund through the Treasury Offset Program, after mailing a Notice of Intent to Offset at least 60 days ahead.
Official Arkansas Sources & Resources
- Arkansas Division of Workforce Services: https://www.dws.arkansas.gov/unemployment/
- Arkansas unemployment statute: Ark. Code 11-10
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Arkansas unemployment overpayment guide was last verified against official Arkansas sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Arkansas Unemployment Guides
- Arkansas Unemployment Appeal: Deadline and Hearing
- Arkansas Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Arkansas
- 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.