A New Mexico 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 New Mexico can offset, and how to appeal the notice before the deadline. Verified against New Mexico Department of Workforce Solutions as of October 2026.
New Mexico Unemployment Overpayment at a Glance
| Non-fault overpayment | New Mexico treats an overpayment as fraud when a claimant knowingly makes a false statement or knowingly fails to disclose a material fact (NMSA… |
| Waiver available | NMDWS states that New Mexico law prohibits it from waiving overpayments of regular State Unemployment Insurance (STUI). |
| Penalty weeks | For a fraud overpayment, the claimant forfeits all benefit rights for up to one year from the date of the determination… |
| Days to appeal the notice | 15 days from the date the determination was transmitted (11.3.500.8 NMAC). The New Mexico Court of Appeals has applied this 15-day limit to a fraud and repayment determination letter. Appeals can be filed by mail, by fax, or online, and the deadline can be extended only for good cause. |
| Overpayment unit | 1-877-664-6984 (UI Operations Center and Benefit Payment Control Unit), Monday to Friday, 8:00 a.m. to 4:30 p.m. Mountain Time. |
In This New Mexico Unemployment Overpayment Guide:
The Three Kinds of New Mexico Unemployment Overpayment
Every New Mexico unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
New Mexico treats an overpayment as fraud when a claimant knowingly makes a false statement or knowingly fails to disclose a material fact (NMSA 51-1-38; 11.3.300.314 NMAC). “Knowingly” also covers statements a claimant should have known were false. Claimants who make honest mistakes based on information the department gave them are excluded from the fraud penalties.
Any other overpayment, such as one caused by an agency or employer error or a reversed decision, is a non-fraud overpayment, but it generally must still be repaid.
New Mexico Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | New Mexico treats an overpayment as fraud when a claimant knowingly makes a false statement or knowingly fails to disclose a material fact (NMSA 51-1-38; 11.3.300.314… |
| Waiver rule | NMDWS states that New Mexico law prohibits it from waiving overpayments of regular State Unemployment Insurance (STUI). Waivers apply only to federal programs. |
| Waiver form | “Request Overpayment Waiver” in the claimant account at https://www.jobs.dws.nm.gov (choose Unemployment Insurance Benefits, then Manage Debt). This is for CARES Act and federal program overpayments only. Background: https://www.dws.nm.gov/en-us/Unemployment/Overpayment-on-CARES-Act-Programs |
| Pay online | Log in at https://www.jobs.dws.nm.gov and go to Manage Debt, where the overpayment history is shown and payments can be made. Checks by mail go to NMDWS and should include the claimant ID. |
| Penalty weeks | For a fraud overpayment, the claimant forfeits all benefit rights for up to one year from the date of the determination (NMSA 51-1-38). |
| Fraud penalty | A civil penalty of 25 percent of the overpaid benefits is added for knowingly false statements or non-disclosure (NMSA 51-1-38(B); 11.3.300.314 NMAC). |
| Appeal the notice within | 15 days from the date the determination was transmitted (11.3.500.8 NMAC). The New Mexico Court of Appeals has applied this 15-day limit to a fraud and repayment determination letter. Appeals can be filed by mail, by fax, or online, and the deadline can be extended only for good cause. days |
| Phone | 1-877-664-6984 (UI Operations Center and Benefit Payment Control Unit), Monday to Friday, 8:00 a.m. to 4:30 p.m. Mountain Time. |
Getting a New Mexico Unemployment Overpayment Waived
NMDWS states that New Mexico law prohibits it from waiving overpayments of regular State Unemployment Insurance (STUI). Waivers apply only to federal programs. Trade Act and Extended Benefits overpayments may be waived if the claimant was not at fault and repayment would be against equity and good conscience. CARES Act overpayments (PUA, FPUC, PEUC, MEUC) may also be waived, with applications due by February 2, 2027 (11.3.300.325 NMAC, amended 11/19/2024).
Confirm your program type with the agency. Use “Request Overpayment Waiver” in the claimant account at https://www.jobs.dws.nm.gov (choose Unemployment Insurance Benefits, then Manage Debt). This is for CARES Act and federal program overpayments only. Background: https://www.dws.nm.gov/en-us/Unemployment/Overpayment-on-CARES-Act-Programs.
New Mexico 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. Log in at https://www.jobs.dws.nm.gov and go to Manage Debt, where the overpayment history is shown and payments can be made. Checks by mail go to NMDWS and should include the claimant ID.
Unpaid balances are offset against future unemployment benefits, state tax refunds and, through the federal Treasury Offset Program, federal tax refunds.
New Mexico Unemployment Overpayment Penalty Weeks and Fraud Penalties
For a fraud overpayment, the claimant forfeits all benefit rights for up to one year from the date of the determination (NMSA 51-1-38). In 2022 the department proposed removing the fixed 52-week forfeiture from 11.3.300.314 NMAC to match the statute. Confirm the current length with NMDWS. A civil penalty of 25 percent of the overpaid benefits is added for knowingly false statements or non-disclosure (NMSA 51-1-38(B); 11.3.300.314 NMAC).
Of that, 15 percent goes to the Unemployment Compensation Fund and 10 percent to the employment security department fund. A separate criminal fine of up to 100 or up to 30 days in jail can apply per false statement (51-1-38(A)).
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Appealing a New Mexico Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 15 days from the date the determination was transmitted (11.3.500.8 NMAC). The New Mexico Court of Appeals has applied this 15-day limit to a fraud and repayment determination letter.
Appeals can be filed by mail, by fax, or online, and the deadline can be extended only for good cause. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline. Our New Mexico appeal guide covers the hearing.
Free Help With a New Mexico Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in New Mexico 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.
The Duran v. NMDWS class action settlement, approved January 2025, provides automatic or individual waivers and refunds for many pandemic-era overpayments caused by administrative errors. Class members generally must apply by early 2027. NMDWS rule cites February 2, 2027, and advocates cite February 21, 2027, so confirm the deadline with NMDWS or the NM Center on Law and Poverty at (505) 225-8473.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our New Mexico fraud guide has the reporting steps and the corrected 1099-G.
New Mexico — the bottom line
- A New Mexico 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 New Mexico unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid New Mexico 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 New Mexico?
Usually yes, unless the state grants a waiver for a non-fault overpayment. NMDWS states that New Mexico law prohibits it from waiving overpayments of regular State Unemployment Insurance (STUI). Waivers apply only to federal programs.
Can an unemployment overpayment be forgiven in New Mexico?
NMDWS states that New Mexico law prohibits it from waiving overpayments of regular State Unemployment Insurance (STUI). Waivers apply only to federal programs.
What are penalty weeks in New Mexico?
For a fraud overpayment, the claimant forfeits all benefit rights for up to one year from the date of the determination (NMSA 51-1-38). In 2022 the department proposed removing the fixed 52-week forfeiture from 11.3.300.314 NMAC to match the statute. Confirm the current length with NMDWS.
Can New Mexico 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 New Mexico Sources & Resources
- New Mexico Department of Workforce Solutions: https://www.dws.state.nm.us/Unemployment
- New Mexico unemployment statute: NMSA 51-1
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This New Mexico unemployment overpayment guide was last verified against official New Mexico sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More New Mexico Unemployment Guides
- New Mexico Unemployment Appeal: Deadline and Hearing
- New Mexico Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in New Mexico
- 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.