Unemployment Benefit Overpayments: Steps you can take

If you recently received a letter regarding unemployment benefit overpayments—called a “Benefit Overpayment Determination Notice”—please read this page for information on this issue and steps you can take.

I received an overpayment notice. What should I do next?

• Some unemployment insurance benefits are determined to be overpayments due to missing identification documents for the person who received benefits. If your notice indicates that you need to verify your identity, to confirm that you are the person entitled to receive benefits, email ui.overpaymentinquiry@maryland.gov, call 667-207-6520, or visit the lobby of 100 S. Charles Street, Baltimore, MD.
• If you need to dispute the overpayment determination, you can file an appeal. Log on to your Maryland Unemployment Insurance Portal (BEACON) portal, select “Correspondence” under ‘‘Your Options,” then select “Search” on the “Criteria” section and “File Appeal” next to the correspondence/determination you wish to appeal, or follow the instructions in the Benefit Overpayment Determination Notice.
• If you suspect that you are the victim of ID fraud, email ui.fraud@maryland.gov or call 667-207-6520. Anyone who receives a MD Labor notification of overpayment that was due to their identity being stolen and used to commit UI fraud will not be held responsible for returning those funds.
• If you want to repay your overpayment, log on to your Maryland Unemployment Insurance Portal (BEACON) portal and select the link for “Benefit Payment,” or follow the instructions in the Benefit Overpayment Determination Notice.
• If you are facing financial hardship and you want to request that your bill be waived, submit a waiver application.
• If you have additional questions, call 667-207-6520, Monday through Friday, 8 a.m. to 4 p.m. We are experiencing a high volume of calls on Mondays and Tuesdays, so we encourage you to call on Wednesday through Friday to reach customer support as fast as possible.

What is an overpayment and why does it happen?

When a claimant—or a person posing as a claimant—is paid benefits to which they may not be entitled, it is called overpayment. Overpayments can occur for several reasons, including unreported wages, changes in work availability, or identity theft or fraud committed by a third party, which was particularly an issue during the COVID-19 pandemic.

If you believe that a determination was made in error or the amount is incorrect, you have the right to appeal. See the instructions outlined above or in your Benefit Overpayment Determination Notice.

Why is this process happening now?

The Maryland Department of Labor is addressing a backlog of unemployment insurance overpayments from prior years that were not pursued by the previous administration and, as part of this process, has sent letters throughout the second half of 2025 to claimants regarding those overpayments.

Recovering overpayments is a legally required part of the unemployment insurance system. Both state and federal law mandate that we now seek recovery of these funds. We’ve worked diligently to resolve structural challenges to restart this process in compliance with legal requirements, particularly by ensuring that every claimant receives detailed information about their full rights to appeal or request a waiver.