A Vermont 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 Vermont can offset, and how to appeal the notice before the deadline. Verified against Vermont Department of Labor as of October 2026.
Vermont Unemployment Overpayment at a Glance
| Non-fault overpayment | Vermont generally requires repayment of any benefits paid while you were not eligible, whether or not anyone was at fault (21 V.S.A. § 1347(a)). |
| Waiver available | Vermont may waive an overpayment if it was not your fault and repaying it would be “contrary to equity and good conscience” (21 V.S.A. § 1347; 2025… |
| Offsets | The Commissioner may withhold future unemployment benefits until the debt is paid (21 V.S.A. § 1347(d)). |
| Penalty weeks | If the Commissioner finds intentional misrepresentation or nondisclosure of a material fact, you may be disqualified… |
| Days to appeal the notice | 30 days from the mail date on the overpayment determination. No collection action is taken while an appeal is pending. |
| Overpayment unit | 802-828-4333 (Vermont Department of Labor Program Integrity Unit) |
In This Vermont Unemployment Overpayment Guide:
The Three Kinds of Vermont Unemployment Overpayment
Every Vermont unemployment overpayment notice names one of these three, and the name on the notice drives the rest of this page.
Vermont generally requires repayment of any benefits paid while you were not eligible, whether or not anyone was at fault (21 V.S.A. § 1347(a)). A non-fault overpayment usually comes from an agency or employer error, or an honest mistake. A fraud overpayment is one where the Commissioner finds you intentionally misrepresented or withheld a material fact. Only fraud findings carry the 15 percent penalty and penalty weeks.
Employment Security Board rules adopted in 2025 define “fault.”
Vermont Unemployment Overpayment Rules at a Glance
| Fault vs non-fault | Vermont generally requires repayment of any benefits paid while you were not eligible, whether or not anyone was at fault (21 V.S.A. § 1347(a)). |
| Waiver rule | Vermont may waive an overpayment if it was not your fault and repaying it would be “contrary to equity and good conscience” (21 V.S.A. § 1347; 2025 Employment Security… |
| Waiver form | Regular UI Overpayment Waiver Request Questionnaire, https://labor.vermont.gov/sites/labor/files/documents/RegularUIOverpaymentWaiverRequestQuestionnaire.pdf (overview page: https://labor.vermont.gov/unemployment-insurance/overpayment-waiver-requests) |
| Offsets | The Commissioner may withhold future unemployment benefits until the debt is paid (21 V.S.A. § 1347(d)). |
| Penalty weeks | If the Commissioner finds intentional misrepresentation or nondisclosure of a material fact, you may be disqualified from benefits for up to 26 weeks, as the Commissioner decides. |
| Fraud penalty | The penalty is 15 percent of the overpaid benefits, added on top of repaying the overpayment. It applies when the Commissioner finds intentional misrepresentation or nondisclosure (21 V.S.A. § 1347(c)). |
| Appeal the notice within | 30 days from the mail date on the overpayment determination. No collection action is taken while an appeal is pending. days |
| Phone | 802-828-4333 (Vermont Department of Labor Program Integrity Unit) |
Getting a Vermont Unemployment Overpayment Waived
Vermont may waive an overpayment if it was not your fault and repaying it would be “contrary to equity and good conscience” (21 V.S.A. § 1347; 2025 Employment Security Board rule). You may qualify if your gross monthly income is at or below 185 percent of the federal poverty level for your household size, or under other listed hardship factors.
To ask for one, complete the full waiver request with supporting documents. You can appeal and request a waiver at the same time. Use Regular UI Overpayment Waiver Request Questionnaire, https://labor.vermont.gov/sites/labor/files/documents/RegularUIOverpaymentWaiverRequestQuestionnaire.pdf (overview page: https://labor.vermont.gov/unemployment-insurance/overpayment-waiver-requests).
Vermont 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 Commissioner may withhold future unemployment benefits until the debt is paid (21 V.S.A. § 1347(d)). The amended version of § 1347(d) from Act 184 of 2024 limits withholding to 50 percent of the weekly benefit amount. That version takes effect on July 1, 2026 or when a contingency occurs, whichever comes first, so confirm which version applies with the agency.
The department’s Claimant Handbook says federal and state tax refunds may be withheld and a future employer may be required to withhold wages. Collection and withholding generally wait until appeal rights are used up, or until a first decision on a pending waiver request.
📨 Get Free Unemployment And Workplace Rights Guides Alerts
Free · No spam · Unsubscribe anytime
Vermont Unemployment Overpayment Penalty Weeks and Fraud Penalties
If the Commissioner finds intentional misrepresentation or nondisclosure of a material fact, you may be disqualified from benefits for up to 26 weeks, as the Commissioner decides. This applies when there is no criminal prosecution under § 1368 and no penalty under § 1373 (21 V.S.A. § 1347(e)). The penalty weeks must be served and do not expire on their own.
The penalty is 15 percent of the overpaid benefits, added on top of repaying the overpayment. It applies when the Commissioner finds intentional misrepresentation or nondisclosure (21 V.S.A. § 1347(c)).
Appealing a Vermont Unemployment Overpayment Notice
You can appeal the overpayment determination itself within 30 days from the mail date on the overpayment determination. No collection action is taken while an 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 Vermont appeal guide covers the hearing.
Free Help With a Vermont Unemployment Overpayment
Got an overpayment notice you do not understand?
Free legal aid offices in Vermont 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.
If someone else filed in your name: that is not an overpayment you owe — it is identity theft. Our Vermont fraud guide has the reporting steps and the corrected 1099-G.
Vermont — the bottom line
- A Vermont 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 Vermont unemployment overpayment notice, the amount, the fault finding and the waiver denial, each on its own deadline.
- Unpaid Vermont 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 Vermont?
Usually yes, unless the state grants a waiver for a non-fault overpayment. Vermont may waive an overpayment if it was not your fault and repaying it would be “contrary to equity and good conscience” (21 V.S.A. § 1347; 2025 Employment Security Board rule).
Can an unemployment overpayment be forgiven in Vermont?
Vermont may waive an overpayment if it was not your fault and repaying it would be “contrary to equity and good conscience” (21 V.S.A. § 1347; 2025 Employment Security Board rule).
What are penalty weeks in Vermont?
If the Commissioner finds intentional misrepresentation or nondisclosure of a material fact, you may be disqualified from benefits for up to 26 weeks, as the Commissioner decides. This applies when there is no criminal prosecution under § 1368 and no penalty under § 1373 (21 V.S.A. § 1347(e)).
Can Vermont take my tax refund for an unemployment overpayment?
The Commissioner may withhold future unemployment benefits until the debt is paid (21 V.S.A. § 1347(d)). The amended version of § 1347(d) from Act 184 of 2024 limits withholding to 50 percent of the weekly benefit amount.
Official Vermont Sources & Resources
- Vermont Department of Labor: https://labor.vermont.gov/unemployment-insurance
- Vermont unemployment statute: 21 V.S.A. ch. 17
- U.S. Department of Labor — Unemployment Insurance: dol.gov
This Vermont unemployment overpayment guide was last verified against official Vermont sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Vermont Unemployment Guides
- Vermont Unemployment Appeal: Deadline and Hearing
- Vermont Unemployment Fraud: Reporting and Penalties
- How to Apply for Unemployment in Vermont
- 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.