A Tennessee 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 Tennessee can offset, and how to appeal the notice before the deadline. Verified against Tennessee Department of Labor and Workforce Development as of October 2026.
Tennessee Unemployment Overpayment at a Glance
| Non-fault overpayment | Tennessee treats an overpayment as non-fault when it was not caused by fraud, misrepresentation or willful nondisclosure and you were not at fault… |
| Waiver available | Under Tenn. |
| Repayment plan | The UI Recovery Unit sets up repayment plans. |
| Offsets | If a repayment plan is not set up, the state may take the debt from your federal income tax refund (Treasury Offset Program) or garnish… |
| Penalty weeks | Under Tenn. |
| Days to appeal the notice | 15 calendar days from the mailing date of the decision. This covers appeals of the overpayment itself, a fault finding, or a denied waiver. File through Jobs4TN.gov or in writing to the Appeals Tribunal. |
| Overpayment unit | Benefit Payment Control Unit: 615-741-2606, or toll-free in Tennessee 800-344-8337. Repayment plans: UI Recovery Unit, 844-817-0619. |
In This Tennessee Unemployment Overpayment Guide:
The Three Kinds of Tennessee Unemployment Overpayment
Every Tennessee unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Tennessee treats an overpayment as non-fault when it was not caused by fraud, misrepresentation or willful nondisclosure and you were not at fault, for example an agency or employer error. An overpayment from a false statement or from withholding information is a fault (fraud) overpayment, which brings penalties and disqualification. Under Tenn. Code Ann. § 50-7-303(d)(1), anyone overpaid generally has to repay, unless a waiver applies.
Tennessee Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Tennessee treats an overpayment as non-fault when it was not caused by fraud, misrepresentation or willful nondisclosure and you were not at fault, for example an agency… |
| Waiver rule | Under Tenn. |
| Repayment plan | The UI Recovery Unit sets up repayment plans. If you received a Notice of Overpayment, you can call 844-817-0619, or later set up a one-time or recurring plan in your Claimant e-Services account. |
| Pay online | You can pay through your Claimant e-Services account (one-time or recurring payment): https://www.tn.gov/workforce/unemployment/manage-my-benefits-redirect/repayment-plan.html. Checks or money orders can be mailed to UI Recovery Unit, P.O. Box 24150, Nashville, TN 37202-4150, with your full name, the last 4 digits of your SSN and your account number. Payments take 3 to 5 business days to post. |
| Offsets | If a repayment plan is not set up, the state may take the debt from your federal income tax refund (Treasury Offset Program) or garnish your wages. |
| Penalty weeks | Under Tenn. Code Ann. § 50-7-303(a)(7), a false or fraudulent statement, or intentionally withheld information, leads to disqualification for at least 4 weeks and up to 52 weeks. |
| Fraud penalty | Under Tenn. Code Ann. § 50-7-715, the penalty is 15 percent of overpaid benefits for a first instance of fraud. |
| Interest | Yes, for fraud overpayments. Under Tenn. Code Ann. § 50-7-715, interest of up to 1.5 percent per month is charged on the total amount due (benefits plus penalties) once it is unpaid 30 or more calendar days after notice. A pending appeal does not stop interest. Payments go first to benefits, then penalties, then interest. |
| Collections | If no repayment plan is set up, the state collects through federal tax refund offset and wage garnishment. Under Tenn. |
| Appeal the notice within | 15 calendar days from the mailing date of the decision. This covers appeals of the overpayment itself, a fault finding, or a denied waiver. File through Jobs4TN.gov or in writing to the Appeals Tribunal. days |
| Phone | Benefit Payment Control Unit: 615-741-2606, or toll-free in Tennessee 800-344-8337. Repayment plans: UI Recovery Unit, 844-817-0619. |
Getting a Tennessee Unemployment Overpayment Waived
Under Tenn. Code Ann. § 50-7-303(d)(2), the state must waive repayment if you show three things: no fraud, misrepresentation or willful nondisclosure; no fault on your part; and that recovery would be against equity and good conscience. The request must be in writing and reach the agency within 90 days of the overpayment determination. The state generally asks for financial records, so confirm what is needed with the state agency.
Tennessee Unemployment Overpayment Repayment Plans and Offsets
The UI Recovery Unit sets up repayment plans. If you received a Notice of Overpayment, you can call 844-817-0619, or later set up a one-time or recurring plan in your Claimant e-Services account. The state does not publish a minimum monthly amount, so confirm it with the UI Recovery Unit ([email protected]). You can pay through your Claimant e-Services account (one-time or recurring payment): https://www.tn.gov/workforce/unemployment/manage-my-benefits-redirect/repayment-plan.html.
Checks or money orders can be mailed to UI Recovery Unit, P.O. Box 24150, Nashville, TN 37202-4150, with your full name, the last 4 digits of your SSN and your account number. Payments take 3 to 5 business days to post.
If a repayment plan is not set up, the state may take the debt from your federal income tax refund (Treasury Offset Program) or garnish your wages. The state may also offset future benefits once the decision is final, and after a fraud overpayment you stay disqualified from future benefits until the overpayment and interest are paid (§ 50-7-303(a)(7)).
Tennessee has no broad state income tax, so a state refund offset generally does not apply. Yes, for fraud overpayments. Under Tenn. Code Ann. § 50-7-715, interest of up to 1.5 percent per month is charged on the total amount due (benefits plus penalties) once it is unpaid 30 or more calendar days after notice. A pending appeal does not stop interest.
Payments go first to benefits, then penalties, then interest. If no repayment plan is set up, the state collects through federal tax refund offset and wage garnishment. Under Tenn. Code Ann. § 50-7-303(d)(3), the agency may waive collection of an overpayment still unpaid 6 years after the determination, whether or not fraud was involved. Waiver after 6 years is up to the agency, not automatic.
Tennessee Unemployment Overpayment Penalty Weeks and Fraud Penalties
Under Tenn. Code Ann. § 50-7-303(a)(7), a false or fraudulent statement, or intentionally withheld information, leads to disqualification for at least 4 weeks and up to 52 weeks. It starts the week after the finding, and the length depends on how serious the facts are. You also stay disqualified from future benefits while any part of the overpayment or interest is unpaid. Under Tenn.
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Code Ann. § 50-7-715, the penalty is 15 percent of overpaid benefits for a first instance of fraud. For the second and each later instance, an added 35 percent penalty applies. These penalties apply to overpayments made on or after July 1, 2016.
Appealing a Tennessee Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 15 calendar days from the mailing date of the decision. This covers appeals of the overpayment itself, a fault finding, or a denied waiver. File through Jobs4TN.gov or in writing to the Appeals Tribunal. days, the amount, the fault finding, or the denial of a waiver — each is a separate decision with its own deadline.
Our Tennessee appeal guide covers the hearing.
Free Help With a Tennessee Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Tennessee 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.
Tennessee does not pay benefits on a fraud decision until the disqualification period is over and the overpayment and penalties are paid in full. The written waiver request has a firm 90-day window from the overpayment determination. That is separate from the 15-day appeal deadline, so most claimants who think the overpayment was not their fault may want to do both, and confirm with the state agency.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Tennessee fraud guide has the reporting steps and the corrected 1099-G.
Tennessee — the bottom line
- A Tennessee 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 Tennessee unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Tennessee 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 Tennessee?
Usually yes, unless the state grants a waiver for a non-fault overpayment. Under Tenn.
Can an unemployment overpayment be forgiven in Tennessee?
Under Tenn. Code Ann. § 50-7-303(d)(2), the state must waive repayment if you show three things: no fraud, misrepresentation or willful nondisclosure; no fault on your part; and that recovery would be against equity and good conscience.
What are penalty weeks in Tennessee?
Under Tenn. Code Ann. § 50-7-303(a)(7), a false or fraudulent statement, or intentionally withheld information, leads to disqualification for at least 4 weeks and up to 52 weeks.
Can Tennessee take my tax refund for an unemployment overpayment?
If a repayment plan is not set up, the state may take the debt from your federal income tax refund (Treasury Offset Program) or garnish your wages.
Official Tennessee Sources & Resources
- Tennessee Department of Labor and Workforce Development: https://www.tn.gov/workforce/unemployment.html
- Tennessee unemployment statute: Tenn. Code 50-7
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Tennessee unemployment overpayment guide was last verified against official Tennessee sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Tennessee Unemployment Guides
- Tennessee Unemployment Appeal: Deadline and Hearing
- Tennessee Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Tennessee
- 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.