A Colorado 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 Colorado can offset, and how to appeal the notice before the deadline. Verified against Colorado Department of Labor and Employment (CDLE) as of October 2026.
Colorado Unemployment Overpayment at a Glance
| Non-fault overpayment | Colorado treats an overpayment as fraud when a claimant made a false statement or willfully failed to disclose a material fact (C.R.S. |
| Waiver available | The division may waive all or part of a non-fraud overpayment when repayment would be inequitable. |
| Days to appeal the notice | 20 calendar days from the mailing date of the determination (C.R.S. 8-74-106). If day 20 falls on a weekend or legal holiday, the deadline generally moves to the next business day. A waiver request is separate from an appeal and does not extend the appeal deadline. |
| Overpayment unit | Benefit Payment Control: 303-318-9035 (Denver metro) or 1-877-464-4622 (toll-free). Confirm the current number on the CDLE contact page. |
In This Colorado Unemployment Overpayment Guide:
The Three Kinds of Colorado Unemployment Overpayment
Every Colorado unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Colorado treats an overpayment as fraud when a claimant made a false statement or willfully failed to disclose a material fact (C.R.S. 8-81-101(4)(a)(II)). Other overpayments are non-fraud, such as those caused by a division error or by relying on the division’s published guidance that later proved wrong (C.R.S. 8-81-101(4)(a)(I)). Only non-fraud overpayments can be considered for a waiver.
Colorado Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Colorado treats an overpayment as fraud when a claimant made a false statement or willfully failed to disclose a material fact (C.R.S. 8-81-101(4)(a)(II)). |
| Waiver rule | The division may waive all or part of a non-fraud overpayment when repayment would be inequitable. |
| Waiver form | Form B-491, Overpayment Waiver Request — https://cdle.colorado.gov/sites/cdle/files/documents/B-491%20Waiver%20Request.pdf |
| Pay online | The MyUI+ claimant account (“Overpayment Info & Payment Plans”), reached from https://cdle.colorado.gov/unemployment |
| Fraud penalty | A fraud overpayment must be repaid in full plus a monetary penalty of 65 percent of the overpaid amount (C.R.S. 8-81-101(4)(a)(II)). |
| Appeal the notice within | 20 calendar days from the mailing date of the determination (C.R.S. 8-74-106). If day 20 falls on a weekend or legal holiday, the deadline generally moves to the next business day. A waiver request is separate from an appeal and does not extend the appeal deadline. days |
| Phone | Benefit Payment Control: 303-318-9035 (Denver metro) or 1-877-464-4622 (toll-free). Confirm the current number on the CDLE contact page. |
Getting a Colorado Unemployment Overpayment Waived
The division may waive all or part of a non-fraud overpayment when repayment would be inequitable. Listed grounds include a division error or relying on erroneous division guidance, financial hardship, or any other reason the division finds sufficient (C.R.S. 8-81-101(4)(a)(I)). You can request a waiver on Form B-491 or through MyUI+. Fraud overpayments generally are not considered, and a waiver denied once for the same overpayment is final.
Use Form B-491, Overpayment Waiver Request — https://cdle.colorado.gov/sites/cdle/files/documents/B-491%20Waiver%20Request.pdf.
Colorado 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. The MyUI+ claimant account (“Overpayment Info & Payment Plans”), reached from https://cdle.colorado.gov/unemployment
Unpaid balances are offset against future unemployment benefits, state tax refunds and, through the federal Treasury Offset Program, federal tax refunds.
Colorado Unemployment Overpayment Penalty Weeks and Fraud Penalties
A fault or fraud overpayment adds penalty weeks — future weeks of otherwise-payable benefits that are forfeited. A fraud overpayment must be repaid in full plus a monetary penalty of 65 percent of the overpaid amount (C.R.S. 8-81-101(4)(a)(II)). Withheld future benefits can pay down the overpayment itself, but the division’s notice says the penalty can only be paid by the claimant directly.
Appealing a Colorado Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 20 calendar days from the mailing date of the determination (C.R.S. 8-74-106). If day 20 falls on a weekend or legal holiday, the deadline generally moves to the next business day.
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A waiver request is separate from an appeal and does not extend the appeal deadline. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline. Our Colorado appeal guide covers the hearing.
Free Help With a Colorado Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Colorado 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.
When the division has enough information at the time it finds an overpayment, Colorado law requires it to review the waiver right away. If it does not have enough information, it must tell the claimant about the right to request a waiver. If you cannot provide documents, the division may accept a written statement signed by you as proof (C.R.S. 8-81-101(4)(a)(I)).
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Colorado fraud guide has the reporting steps and the corrected 1099-G.
Colorado — the bottom line
- A Colorado 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 Colorado unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Colorado 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 Colorado?
Usually yes, unless the state grants a waiver for a non-fault overpayment. The division may waive all or part of a non-fraud overpayment when repayment would be inequitable.
Can an unemployment overpayment be forgiven in Colorado?
The division may waive all or part of a non-fraud overpayment when repayment would be inequitable. Listed grounds include a division error or relying on erroneous division guidance, financial hardship, or any other reason the division finds sufficient (C.R.S.
What are penalty weeks in Colorado?
Future weeks of otherwise-payable benefits that are forfeited as a penalty for a fault overpayment.
Can Colorado 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 Colorado Sources & Resources
- Colorado Department of Labor and Employment (CDLE): https://cdle.colorado.gov/unemployment
- Colorado unemployment statute: C.R.S. 8-70 to 8-82
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Colorado unemployment overpayment guide was last verified against official Colorado sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Colorado Unemployment Guides
- Colorado Unemployment Appeal: Deadline and Hearing
- Colorado Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Colorado
- 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.