NJ Unemployment Overpayment Waiver (Forgiveness): How to Request It

Complete guide to requesting unemployment overpayment forgiveness in New Jersey: eligibility, forms, deadlines, and what to expect

If you’ve received a notice from the New Jersey Department of Labor and Workforce Development (NJDOL) saying you were overpaid unemployment benefits and must repay the money, you may be able to request overpayment forgiveness through New Jersey’s waiver process. A waiver allows you to ask the state to forgive (waive) some or all of the debt if you meet specific eligibility criteria.

This guide will walk you through everything you need to know about requesting an unemployment overpayment waiver in New Jersey, including what “forgiveness” means, who qualifies, how to apply, what documents to submit, deadlines, and what happens after you file your request. For general information about overpayment waivers nationwide, visit our national overpayment waiver hub. For other New Jersey unemployment resources, see our New Jersey unemployment hub.

1. What Does “Overpayment Forgiveness” Mean in New Jersey?

Many people searching for “NJ unemployment overpayment forgiveness” are looking for information about the waiver process. In New Jersey, the official term is “overpayment waiver,” which means asking the state to forgive (waive) the debt so you do not have to repay some or all of the overpaid unemployment benefits.

An overpayment occurs when NJDOL determines you received more unemployment benefits than you were entitled to. This can happen for many reasons, including employer appeals, unreported earnings, eligibility changes, identity verification issues, or agency errors. Once an overpayment is established, NJDOL will send you a notice explaining the amount you owe and your options.

Waiver vs. Appeal vs. Repayment Plan (NJ Examples)

It’s important to understand the difference between three separate processes:

Important: In some cases, you may be able to file both an appeal and a waiver request. Check your overpayment notice for specific instructions and deadlines, or contact NJDOL if you’re unsure which option to choose.

2. First Step: Read Your NJ Overpayment Notice (Deadline + Reason)

Your overpayment notice is the most important document in this process. It contains critical information you’ll need to decide whether to appeal, request a waiver, or set up a repayment plan.

What Your Notice Usually Tells You

Your New Jersey unemployment overpayment notice typically includes:

• Reason for the overpayment: Why NJDOL determined you were overpaid (e.g., employer appeal, unreported earnings, eligibility issue, etc.)
• Amount owed: The total dollar amount of the overpayment
• How to appeal: Instructions and deadline to challenge the overpayment determination
• How to request a waiver: Instructions and deadline to request forgiveness (waiver)
• How to repay: Payment options, including lump sum or installment agreement
• Consequences of non-payment: What happens if you don’t respond (benefit offsets, tax refund intercepts, etc.)

Should You File an Appeal, a Waiver, or Both?

Use this simple decision tree to determine your next step:

3. Who Qualifies for an Overpayment Waiver in NJ?

To qualify for an unemployment overpayment waiver in New Jersey, you must meet two key requirements:

Requirement 1: The Overpayment Was Not Your Fault (Non-Fraud)

New Jersey will only grant a waiver if the overpayment was not your fault. This means you must demonstrate that you:

• Did not knowingly misrepresent any facts when filing your claim or certifying for weekly benefits
• Did not intentionally withhold material information
• Provided accurate information to the best of your knowledge and in good faith
• Relied on the state’s determination or instructions when receiving benefits
• The overpayment resulted from an agency error, employer appeal, misunderstanding, or other non-fraudulent reason

If fraud is established: Waivers are almost never granted for fraud overpayments. Fraud means you knowingly provided false information or concealed facts to obtain benefits you were not entitled to. Fraud overpayments can result in penalties, disqualification from future benefits, and potential criminal prosecution.

Requirement 2: Repayment Would Be Unfair or Cause Hardship

You must also show that requiring you to repay the overpayment would be against equity and good conscience or would cause financial hardship. New Jersey evaluates this by looking at:

• Your current income and expenses: Do you have enough income to meet basic living needs after repaying the debt?
• Essential expenses: Rent/mortgage, utilities, food, medical care, childcare, transportation, etc.
• How you used the benefits: Did you rely on the benefits for necessary living expenses (not frivolous spending)?
• Whether you still have the funds: Can you realistically repay without severe hardship?
• Dependents or special circumstances: Do you support children, elderly parents, or disabled family members? Do you have medical conditions or disabilities that increase your expenses?

NJDOL will typically require you to submit a monthly budget worksheet (often included in Form BPC-9 or requested separately) along with supporting documents to prove hardship.

4. How to Request an Overpayment Waiver in NJ (Step-by-Step)

New Jersey’s overpayment waiver process is primarily handled through the NJDOL online portal. Here’s exactly how to submit your waiver request:

Step 1 — Log In and Find the Waiver Button

1. Go to the NJDOL unemployment portal
2. Log in with your username and password
3. Navigate to Claim Status or Overpayment Information
4. Look for a button or link labeled “Request Overpayment Waiver” or “Waiver Application”

Note: If you do not see a waiver option online, check your overpayment notice for instructions. Some cases may require you to submit a paper form (Form BPC-9) by mail or email.

Step 2 — Complete the Waiver/Financial Questions (BPC-9)

The waiver application will ask you to provide:

• Personal information: Name, address, Social Security number (or claimant ID), phone, email
• Overpayment details: Notice date, determination number, overpayment amount
• Reason you believe the waiver should be granted: Explain why the overpayment was not your fault and why repayment would cause hardship (be specific but concise)
• Monthly budget: List all sources of income and all essential monthly expenses
• Supporting documentation: Indicate what documents you are submitting (see Section 5 below)

Tip: Be honest and thorough. Do not exaggerate hardship, but clearly explain your financial situation. Use specific numbers and dates whenever possible.

Step 3 — Upload/Send Supporting Documents

Depending on whether you’re submitting online or by mail, you’ll need to:

• Online: Upload scanned copies or photos of your supporting documents through the portal
• By mail: Mail copies (never originals) of your documents to the address listed on your overpayment notice
• By email: Some notices may provide an email address for submitting documents (check your notice)

Important: Keep copies of everything you submit. If mailing, send by certified mail with return receipt to have proof of delivery.

Step 4 — Track Your Request + Respond Fast

After submitting your waiver request:

• Check your NJDOL account regularly for status updates or requests for additional information
• Monitor your mail and email for correspondence from NJDOL
• Respond immediately to any requests for more documents or clarification (failure to respond can result in automatic denial)
• Keep certifying for weekly benefits if you’re still unemployed (even if you’re not currently receiving payments)

5. Documents Checklist for NJ Waiver Requests

To support your waiver request, you’ll need to provide documentation proving both that the overpayment was not your fault and that repayment would cause hardship. Here’s what to gather:

Income Proof

• Recent pay stubs (last 2–3 months) if you’re currently working
• Benefit statements (unemployment, Social Security, disability, SSI, TANF, etc.)
• Bank statements (last 1–2 months) showing deposits and account balance
• Tax returns (if self-employed or if requested by NJDOL)

Expenses Proof

• Rent or mortgage statement (lease agreement, mortgage statement, or payment receipts)
• Utility bills (electric, gas, water, internet, phone)
• Grocery/food expenses (receipts or bank statements showing typical spending)
• Transportation costs (car payment, insurance, gas, public transit passes)
• Insurance premiums (health, auto, life, etc.)

Housing/Medical/Childcare (If Applicable)

• Eviction notice or foreclosure warning (if facing housing loss)
• Medical bills or prescriptions (if you have significant medical expenses)
• Disability documentation (SSI/SSDI award letter, doctor’s note, etc.)
• Childcare or dependent care expenses (receipts, contracts, invoices)
• Proof of dependents (birth certificates, custody agreements, tax dependents)

Copy of Notice + Any Determinations

• Copy of your overpayment notice
• Copy of the underlying determination (if the overpayment resulted from a separation issue, eligibility decision, or employer appeal)
• Any other correspondence with NJDOL about the overpayment

Reminder: Always submit copies, never originals. Keep a complete file of everything you send to NJDOL.

6. What Happens After You Apply?

Processing Time & Decision Letter

After you submit your waiver request, NJDOL will review your application and supporting documents. Processing times vary depending on the agency’s caseload, but you can generally expect to wait several weeks to several months for a decision.

You will receive a written decision letter by mail or through your NJDOL online account. The decision will explain whether your waiver was approved (in full or in part) or denied, and what your next steps are.

If NJ Asks for More Info

NJDOL may send you a request for additional information or documents. This does not mean your waiver is being denied—it simply means they need more details to make a decision. Respond as quickly as possible with the requested information to avoid delays or automatic denial.

If Approved / Partially Approved / Denied

Approved (full waiver):

• You do not have to repay the overpayment
• Any benefit offsets or intercepts related to the waived overpayment should stop
• Keep the decision letter for your records

Partially approved:

• Part of the overpayment is waived; you still owe the remaining balance
• You can set up a repayment plan for the amount still owed

Denied:

• The waiver was not approved; you must repay the full overpayment
• You can appeal the waiver denial (see below)
• You can request a repayment plan to pay in installments

Can You Appeal a Waiver Denial?

Yes. If your waiver is denied, your decision letter will include instructions on how to appeal the denial and the deadline to file (typically 20 days from the date of the decision letter). If you believe the denial was incorrect or you have new information to present, file an appeal promptly.

For more information about the appeal process, visit our unemployment appeal hub or our New Jersey unemployment appeal guide.

7. Repayment Options in New Jersey (Payments + Installment Plans)

If your waiver is denied (or while your waiver is pending), you can repay the overpayment through one of the following options:

One-Time Payment

You can repay the full overpayment amount in a single payment. NJDOL accepts payments by:

• Online: Through the NJDOL payment portal (check your overpayment notice for the link)
• Check or money order: Mail to the address listed on your notice (include your claimant ID and reference number)
• Debit card (if available): Some notices may provide a phone number to pay by debit card

Installment Agreement (Payment Plan)

If you cannot afford to pay the full amount at once, you can request an installment agreement (payment plan). To set up a payment plan:

1. Contact NJDOL at the phone number or email listed on your overpayment notice
2. Request a payment plan and propose a monthly payment amount you can afford
3. NJDOL will review your request and may ask for financial documentation
4. Once approved, you’ll receive a payment schedule and instructions for making monthly payments

Important: Stick to the payment plan schedule. Missing payments can result in the plan being canceled and collection actions resuming (benefit offsets, tax intercepts, etc.).

Keep Proof of Payment

Always keep records of your payments:

• Save confirmation numbers, receipts, and bank statements showing payments
• Check your NJDOL account regularly to confirm payments were applied correctly
• If you pay by check or money order, keep copies and delivery receipts

8. Can NJ Take Future Benefits or Tax Refunds?

If you owe an unemployment overpayment in New Jersey, the state has several tools to collect the debt:

Benefit Offsets

If you continue to receive unemployment benefits (now or in the future), NJDOL can automatically deduct a portion of your weekly benefit payment to repay the overpayment. This is called a benefit offset. The amount withheld varies but is typically a percentage of your weekly benefit amount (often 25%–50%).

Benefit offsets generally continue until the overpayment is fully repaid, unless you successfully appeal the overpayment or receive a waiver.

State Tax Refund Offset (Set-Off)

New Jersey participates in a state tax refund offset program. This means if you owe an unemployment overpayment and are due a New Jersey state tax refund, the state can intercept (offset) your refund and apply it toward the overpayment debt.

You will receive a notice before the offset occurs, and you have the right to appeal or request a waiver before your refund is intercepted.

Federal Tax Refund Offset (TOP / Federal Refund Offset)

In some cases, New Jersey may submit certain final unemployment overpayment debts for a federal tax refund offset, meaning your federal income tax refund could be intercepted and applied to the debt. New Jersey has stated it can submit unpaid unemployment debts for offset against future federal tax refunds.

Important clarification: Federal refund offsets are not automatic for every overpayment. Whether a debt can be referred for federal offset depends on the type of overpayment, whether the debt is final, and the state’s procedures. Always read your NJDOL notices and any U.S. Treasury letters carefully, because timing and eligibility vary by case.

Learn more about TOP here: U.S. Treasury Offset Program (TOP).

Wage Garnishment (Administrative or Court-Ordered)

In some cases, New Jersey may use administrative wage garnishment or seek a court order to garnish your wages (take money directly from your paycheck) to repay an unemployment overpayment. This is less common than benefit offsets or tax intercepts and typically requires notice and due process.

If you receive a wage garnishment notice, you have the right to appeal or request a hardship exemption (if available under state law).

9. Special Cases (NJ)

Fraud vs. Non-Fraud Overpayments

Non-fraud overpayment: The overpayment was not your fault (agency error, employer appeal, misunderstanding, etc.). Waivers are available if you meet the eligibility criteria outlined in Section 3.

Fraud overpayment: You knowingly misrepresented facts or withheld material information to obtain benefits. Fraud overpayments typically cannot be waived and often result in penalties (up to 52 weeks of benefit disqualification), interest charges, and potential criminal prosecution. If you are accused of fraud, you have the right to a hearing to contest the fraud determination.

Identity Theft / Impostor Claims

If you did not file an unemployment claim and someone used your identity to fraudulently collect benefits in your name, you should not be held responsible for the overpayment. Here’s what to do:

1. Report identity theft immediately: Contact NJDOL’s fraud hotline at 609-777-4304 and report that you did not file a claim
2. File a police report: File a report with your local police department and get a copy
3. File an FTC Identity Theft Report: Go to IdentityTheft.gov and create an Identity Theft Report
4. Submit documentation to NJDOL: Provide the police report, FTC report, and a signed statement that you did not file the claim
5. Request removal of the overpayment: Ask NJDOL to remove the fraudulent overpayment from your account and clear your record

Pandemic-Era Overpayments

Many unemployment overpayments in New Jersey occurred during the COVID-19 pandemic due to the rapid expansion of programs like PUA (Pandemic Unemployment Assistance) and PEUC (Pandemic Emergency Unemployment Compensation). Some of these overpayments resulted from agency errors, confusing eligibility rules, or identity theft.

New Jersey has processed many pandemic-era overpayment waivers. If your overpayment is related to PUA, PEUC, or FPUC benefits received during the pandemic, you may still be eligible for a waiver. Check the NJDOL website for updates and guidance specific to pandemic programs.

Bankruptcy

Some unemployment overpayments may be dischargeable in bankruptcy in certain situations, but the outcome depends on the facts of the case and the type of overpayment. Debts involving alleged fraud are often treated differently. If you’re considering bankruptcy, consult a qualified bankruptcy attorney.

10. Frequently Asked Questions (FAQ)

11. Official Resources & Next Steps

Here are the most reliable official resources for New Jersey unemployment overpayment waiver information and assistance:

New Jersey Official Resources

• NJDOL — My Unemployment (Claimant Portal): Log in to check your overpayment status, submit waiver requests, and track your case
• NJDOL — Contact Information: Phone numbers, email addresses, and office locations
• NJDOL Fraud Hotline: 609-777-4304 (to report identity theft or fraud)
• NJDOL — Overpayments Information: General information about overpayments, waivers, and repayment options

Federal Resources

• IdentityTheft.gov: Report identity theft and create an Identity Theft Report
• U.S. Treasury Offset Program (TOP): Information about federal tax refund offsets
• CareerOneStop — State Unemployment Agencies: Directory of all state unemployment agencies

Legal Assistance

• Legal Services of New Jersey (LSNJ): Free civil legal assistance for low-income New Jersey residents
• LawHelpNJ.org: Self-help resources and legal aid directory for New Jersey

Related Guides

• National Unemployment Overpayment Waiver Guide
• How to Appeal a Denied Unemployment Claim
• New Jersey Unemployment Appeal Guide
• New Jersey Unemployment Hub

Next Steps

1. Read your overpayment notice carefully: Note the deadline, reason, and amount
2. Decide whether to appeal, request a waiver, or both: Use the decision tree in Section 2
3. Gather documentation: Income proof, expense proof, budget worksheet, and copy of your notice
4. Submit your waiver request before the deadline: File online through NJDOL portal or submit Form BPC-9 by mail/email
5. Keep certifying for weekly benefits: Continue filing weekly claims if you’re still unemployed