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  2. DET-APPS
  3. TAA Policy Manual
  4. Chapter 2) Program Administration & Oversight
  5. 2.5 Overpayments of Training and Other Activities Funds


TAA Policy Manual
Ch.2) Program Administration & Oversight



2.5 Overpayments of Training and Other Activities Funds

Effective Date: December 11, 2024

Overpayments may be made to TAA participants or others (training providers, employers, etc.) in a variety of circumstances, for example, if a payment such as RTAA or mileage is calculated incorrectly, if a participant drops training without good cause, or if someone receiving out of area job search or relocation assistance is not able to provide receipts for the full sum they were advanced.

When it is determined that an overpayment has been made, the career planner must document in case notes the total amount of the payment, the amount that was overpaid, and the reason for the overpayment. The TAA Program is required to allow anyone determined to have received an overpayment a reasonable chance to show that they are eligible to have the repayment waived,1 by discussing whether they are at fault in the overpayment and by asking them if they can attest that repayment would be a hardship to themselves or their families. Once the State determines if repayment is required, the participant must receive an official determination of the overpayment including whether they are required to repay the overpaid amount and given an opportunity to appeal the determination.2

2.5.1 Overpayments and Good Cause

If a participant fails to complete a training, job search or relocation with good cause, any amount necessarily expended in trying to complete the training, job search, or relocation is not an overpayment.3

If a participant fails to complete a training, job search or relocation without good cause, then any payments made for the uncompleted part of the benefit are overpayments.4

For the purposes of this section, good cause exists if the participant acted diligently but was unable to complete training, a job search, or relocation because of exigent circumstances. The State must determine good cause on a case-by-case basis.5

For RTAA, a participant meets the "earns not more than $50,000 each year in wages from reemployment" requirement for a given RTAA payment period if the determination of annualized wages is accurate and complete at the time it is made. Payments made on that basis are valid and are not overpayments.6

2.5.2 Determining if an Overpayment Must be Waived

Participants are required to repay overpayments unless both of the following conditions are met. If both conditions are met, the repayment must be waived:

  1. The overpayment was not the participant's fault, AND
  2. Requiring repayment would cause a financial hardship for the participant or their household.7

Fault

Overpayments are considered to be the participant's fault if the overpayment is made because the participant

  • made statements that they knew (or should have known) were inaccurate that led to the overpayment8
  • failed to disclose (or caused someone else to fail to disclose) a relevant fact in their application for benefits9
  • accepted the benefit when they knew (or should have known) they were not entitled to it10
  • knowingly performed any act or omission that they knew was inaccurate or wrong that even partially or indirectly led to the overpayment.11

Career planners must describe the circumstances leading to an overpayment in an ASSET case note and include their determination of whether the overpayment was the participant's fault.

NOTE: Any funds advanced for an out-of-area job search or relocation that are not supported with receipts are overpayments and the participant is considered to be at fault. This is because (per the last bullet point above) the participant has omitted to provide receipts that they knew were required.

Financial Hardship

Requiring overpayment would cause a financial hardship if it would mean that the participant or their household would be unable to pay for ordinary and necessary living expenses, considering income and resources (such as bank accounts) reasonably available to the participant and their household.12

Financial hardship is determined by the participant signing and returning the financial hardship letter, attesting that repayment would cause an extraordinary financial hardship.

2.5.3 Waiving an Overpayment

If it is determined that the participant was not at fault for an overpayment, the TRL and career planner will work together to send the financial hardship letter. If the participant attests that repayment would cause them financial hardship, the overpayment is waived. The career planner must save the signed financial hardship letter in the case file and make sure there is an ASSET case note describing the circumstances leading to the overpayment and including their determination of whether the overpayment was the participant's fault.

The TRL will then email TRA@dwd.wisconsin.gov with the amount and circumstances of the overpayment, the determination that the participant was not at fault, and a copy of the financial hardship letter and TRA will issue a determination. The participant will then have 14 days to appeal the determination. The career planner will upload the determination to ASSET.

2.5.4 Seeking Repayment of an Overpayment

If the overpayment cannot be waived, either because the participant was determined to be at fault or they did not attest that repayment would cause a financial hardship, the TRL will email TRA@dwd.wisconsin.gov with the amount and circumstances of the overpayment and TRA will issue a determination. The participant will then have 14 days to appeal the determination.

If the participant does not appeal, once the appeal period has ended the TRL will send the QE decision to Finance and direct them to recover the overpayment.

If the participant does appeal,

  • if the adjudicator decides that the participant needs to repay the overpayment,
    • the TRL will send the QE decision to Finance and direct them to recover the overpayment, and
    • the career planner will upload the determination to ASSET and case note the result of the appeal.
  • if the adjudicator decides that the participant does not need to repay the overpayment,
    • the career planner will upload the determination to ASSET and case note the result of the appeal.

If the participant is active and receiving ongoing benefits, Finance and the TRL may work together to delete the amount owed from future payments. The State may not deduct more than 50% of any one payment.13

If Finance will recover the overpayment from the participant, the TRL will check periodically with Finance to see if the overpayment has been recovered.

2.5.5 If the Participant Does Not Repay the Overpayment

If the overpayment is not waived and the participant does not repay, the State must recover the overpaid amount by deducting it from any amounts payable to the person under

  • the TAA Program
  • UI paid under any Federal or State law14

The State may not deduct more than 50% of any one payment.15

If there are no amounts payable under the TAA Program or UI, and the participant has not repaid the invoice or made a payment plan within 60 days of the deadline to repay, the amount will be sent to DOR for recovery. Once it has been recovered, the TRL will assist the Career Planner to enter the recovered amount into ASSET Financial.

2.5.6 Additional Penalties for False Statements or Knowing Nondisclosures

In addition to being required to repay any amounts that were overpaid, the person responsible will be permanently ineligible for the TAA Program if the State, DOL, or a judge determines that they received a payment from the TAA Program that they were not entitled to because they

  • knowingly made a false statement or representation of material fact or caused someone else to do so; or
  • knowingly failed to disclose a material fact or caused someone else to do so.16

If a career planner discovers that a participant has knowingly defrauded the TAA program, they will work with their TRL to send notice to TRA@dwd.wisconsin.gov.

  • 1 20 CFR § 618.832(a)(2)
  • 2 20 CFR § 618.832(c)
  • 3 20 CFR § 618.832(d)(1)
  • 4 20 CFR § 618.832(d)(2)
  • 5 20 CFR § 618.832(d)(3)
  • 6 20 CFR § 618.832(d)(5)
  • 7 20 CFR § 618.832(a)(1)
  • 8 20 CFR § 618.832(a)(4)(i)
  • 9 20 CFR § 618.832(a)(4)(ii)
  • 10 20 CFR § 618.832(a)(4)(iii)
  • 11 20 CFR § 618.832(a)(4)(iv)
  • 12 20 CFR § 618.832(a)(3)
  • 13 20 CFR § 618.832(e)(3)
  • 14 20 CFR § 618.832(e)(1) and (2)
  • 15 20 CFR § 618.832(e)(3)
  • 16 20 CFR § 618.832(b). While DOL declined to further define the circumstances in which this clause applies, they did note that it was "" and DWD-TAA believes that it applies only when the participant intended to defraud the program.
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