A Maryland 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 Maryland can offset, and how to appeal the notice before the deadline. Verified against Maryland Department of Labor as of October 2026.
Maryland Unemployment Overpayment at a Glance
| Non-fault overpayment | Maryland generally treats an overpayment as non-fault when it came from agency error, employer error, or a later redetermination or appeal decision… |
| Waiver available | The Maryland Department of Labor may waive recovery when the claimant is found to be without fault and cannot repay now or in the foreseeable future. |
| Penalty weeks | For a fraud finding, the claimant is disqualified from benefits for 1 year from the date of the determination that the… |
| Days to appeal the notice | 15 days from the mailing date of the benefit overpayment determination. A Hearing Examiner may extend this for good cause. Appeals go to the Lower Appeals Division through BEACON, email, or letter. You may not have to repay while a timely appeal is pending. |
| Overpayment unit | Benefit Payment Control Unit 410-767-2404 (Monday–Friday, 8 a.m.–4 p.m.). Main claims line 667-207-6520. |
In This Maryland Unemployment Overpayment Guide:
The Three Kinds of Maryland Unemployment Overpayment
Every Maryland unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Maryland generally treats an overpayment as non-fault when it came from agency error, employer error, or a later redetermination or appeal decision, and the claimant did nothing wrong. It is a fault (fraud) overpayment when the claimant knowingly made a false statement or knowingly hid a material fact to get or increase benefits (Md. Code, Labor & Employment §§ 8-809(b), 8-1301).
Maryland Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Maryland generally treats an overpayment as non-fault when it came from agency error, employer error, or a later redetermination or appeal decision, and the claimant did… |
| Waiver rule | The Maryland Department of Labor may waive recovery when the claimant is found to be without fault and cannot repay now or in the foreseeable future. |
| Waiver form | Request for Reconsideration/Waiver of Unemployment Insurance Overpayment, https://labor.md.gov/forms/uiopwaiver263.pdf (federal pandemic benefits use https://labor.md.gov/forms/uiopwaivercares.pdf) |
| Pay online | In the Maryland Unemployment Insurance Portal (BEACON), go to “Action Items,” choose “Pay Now” under the overpayment balance, and follow the prompts. You can also mail a check or money order to P.O. Box 1931, Baltimore, MD 21203-1931. |
| Penalty weeks | For a fraud finding, the claimant is disqualified from benefits for 1 year from the date of the determination that the claim involved a false statement or omission (Md. |
| Fraud penalty | The claimant must make full restitution plus a monetary penalty of 15 percent of the benefits unlawfully received (Md. Code, Labor & Employment § 8-1305(b)). |
| Collections | Unpaid accounts may be transferred to the Maryland Central Collection Unit, (410) 767-1220 or (800) 705-3493. |
| Appeal the notice within | 15 days from the mailing date of the benefit overpayment determination. A Hearing Examiner may extend this for good cause. Appeals go to the Lower Appeals Division through BEACON, email, or letter. You may not have to repay while a timely appeal is pending. days |
| Phone | Benefit Payment Control Unit 410-767-2404 (Monday–Friday, 8 a.m.–4 p.m.). Main claims line 667-207-6520. |
Getting a Maryland Unemployment Overpayment Waived
The Maryland Department of Labor may waive recovery when the claimant is found to be without fault and cannot repay now or in the foreseeable future. Fraud overpayments cannot be waived. The state generally requires the request within 30 days of the original overpayment determination unless good cause is shown. You may not have to repay while a timely waiver request is pending. Confirm details with the agency.
Use Request for Reconsideration/Waiver of Unemployment Insurance Overpayment, https://labor.md.gov/forms/uiopwaiver263.pdf (federal pandemic benefits use https://labor.md.gov/forms/uiopwaivercares.pdf).
Maryland 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. In the Maryland Unemployment Insurance Portal (BEACON), go to “Action Items,” choose “Pay Now” under the overpayment balance, and follow the prompts. You can also mail a check or money order to P.O. Box 1931, Baltimore, MD 21203-1931.
Unpaid balances are offset against future unemployment benefits, state tax refunds and, through the federal Treasury Offset Program, federal tax refunds. Unpaid accounts may be transferred to the Maryland Central Collection Unit, (410) 767-1220 or (800) 705-3493. The Division’s Legal Services and Collections Unit may also take legal action if repayment is not arranged within a reasonable time.
The agency generally cannot decide to recover benefits more than 3 years after they were paid. An amount still unrecovered 5 years after the recovery decision may be treated as uncollectible (§ 8-809).
Maryland Unemployment Overpayment Penalty Weeks and Fraud Penalties
For a fraud finding, the claimant is disqualified from benefits for 1 year from the date of the determination that the claim involved a false statement or omission (Md. Code, Labor & Employment §§ 8-809(b), 8-1305(b)(2)). Willful violations are also a misdemeanor under § 8-1305(a). The claimant must make full restitution plus a monetary penalty of 15 percent of the benefits unlawfully received (Md. Code, Labor & Employment § 8-1305(b)).
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Appealing a Maryland Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 15 days from the mailing date of the benefit overpayment determination. A Hearing Examiner may extend this for good cause. Appeals go to the Lower Appeals Division through BEACON, email, or letter.
You may not have to repay while a timely appeal is pending. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline. Our Maryland appeal guide covers the hearing.
Free Help With a Maryland Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Maryland 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.
While a timely appeal or waiver request is pending, the state generally does not require repayment and does not send monthly billing statements. Monthly statements also stop once an account moves to the Central Collection Unit. A 2022 law (HB 4) requires the Secretary to investigate claims that the agency recovered more than the noticed amount and to refund any excess.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Maryland fraud guide has the reporting steps and the corrected 1099-G.
Maryland — the bottom line
- A Maryland unemployment overpayment is one of three kinds — non-fault, fault or fraud — and the kind decides whether a waiver is possible.
- You can appeal a Maryland unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Maryland 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 Maryland?
Usually yes, unless the state grants a waiver for a non-fault overpayment. The Maryland Department of Labor may waive recovery when the claimant is found to be without fault and cannot repay now or in the foreseeable future. Fraud overpayments cannot be waived.
Can an unemployment overpayment be forgiven in Maryland?
The Maryland Department of Labor may waive recovery when the claimant is found to be without fault and cannot repay now or in the foreseeable future. Fraud overpayments cannot be waived.
What are penalty weeks in Maryland?
For a fraud finding, the claimant is disqualified from benefits for 1 year from the date of the determination that the claim involved a false statement or omission (Md. Code, Labor & Employment §§ 8-809(b), 8-1305(b)(2)). Willful violations are also a misdemeanor under § 8-1305(a).
Can Maryland take my tax refund for an unemployment overpayment?
Yes — state and federal tax refunds and future benefits can be offset against an unpaid overpayment.
Official Maryland Sources & Resources
- Maryland Department of Labor: https://www.labor.maryland.gov/employment/unemployment.shtml
- Maryland unemployment statute: Md. Code, Lab. & Empl. Title 8
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Maryland unemployment overpayment guide was last verified against official Maryland sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Maryland Unemployment Guides
- Maryland Unemployment Appeal: Deadline and Hearing
- Maryland Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Maryland
- 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.