Indiana § 22-4-13-5 - Offer in compromise

§ 22-4-13-5. Offer in compromise

Sec. 5. (a) This section does not apply to cases of improper payments under any of the following provisions:

(1) Section 1(c) of this chapter.

(2) Section 1(d) of this chapter.

(3) IC 22-4-11.5.

(b) The department may accept an offer in compromise from an employer or claimant to reduce past due debt arising from contributions or benefit overpayments imposed under this article.

(c) The department may adopt rules under IC 4-22-2 to carry out this section.

As added by P.L.85-2023, SEC.3.

IC 22-4-13.3Chapter 13.3. Administrative Withholding for Benefit Overpayments

22-4-13.3-1Applicability of chapter; authority for department to require income withholding 22-4-13.3-2Notice to individual subject to income withholding; contents of notice 22-4-13.3-3Notice to employer to withhold income; contents of notice 22-4-13.3-4Employer's duties related to income withholding; fee for withholding income 22-4-13.3-5Employer may not discriminate against employee because of income withholding; employee remedies 22-4-13.3-6Employer refusal to withhold income or income misrepresented; department remedies 22-4-13.3-7Employer and department immunity; limitations on income withholding; rulemaking authority 22-4-13.3-8Contest of income withholding; basis for contest; administrative hearing; review of administrative decision

IC 22-4-13.3-1Applicability of chapter; authority for department to require income withholding Sec. 1. Whenever:

(1) the department establishes an overpayment for an individual under IC 22-4-13-1(c) or IC 22-4-13-1(d); and

(2) the overpayment becomes final following the exhaustion of all appeals;

the department may, in addition to any other manner of collecting the overpayment provided by law, require each employer of an individual for whom an overpayment is established to withhold amounts from the individual's income and pay those amounts to the department in accordance with this chapter.

As added by P.L.183-2015, SEC.5.

IC 22-4-13.3-2Notice to individual subject to income withholding; contents of notice Sec. 2. (a) The department shall provide a notice to an individual who is subject to withholding under section 1 of this chapter.

(b) The notice provided under subsection (a) must contain the following:

(1) That the individual's income will be withheld.

(2) That a notice to withhold the individual's income applies to all current and subsequent employers.

(3) That a notice to withhold income will be provided to each of the individual's employers and will include the information listed in section 3 of this chapter.

(4) That the individual may contest the withholding and assert exemptions from withholding by requesting an administrative review.

(5) The grounds and procedures for the individual to contest the withholding.

As added by P.L.183-2015, SEC.5.

IC 22-4-13.3-3Notice to employer to withhold income; contents of notice Sec. 3. (a) The department shall provide a notice to withhold income to each employer of an individual who is subject to withholding under section 1 of this chapter.

(b) A notice to withhold income provided under subsection (a) is binding on the employer and must contain the following:

(1) The Social Security number of the individual who is subject to withholding.

(2) The total amount to be withheld from the individual's income, including any interest, penalties, or assessments accrued under this article.

(3) An explanation of an employer's duties under section 4 of this chapter upon the employer's receipt of the notice to withhold income.

(4) A description of the limitations on income withholding established by section 7(d) of this chapter.

(5) A description of:

(A) the prohibition established under section 5 of this chapter against an employer using income withholding as the basis for refusing to hire, discharging, or taking disciplinary action against an individual; and

(B) the penalties established under section 6 of this chapter for an employer that refuses to withhold income or knowingly misrepresents an employee's income.

As added by P.L.183-2015, SEC.5.

IC 22-4-13.3-4Employer's duties related to income withholding; fee for withholding income Sec. 4. (a) An employer that receives a notice to withhold income under section 3 of this chapter shall do the following:

(1) Verify the individual's employment to the department.

(2) Withhold from the income due to the individual each pay period an amount:

(A) determined in accordance with; and

(B) subject to the limitations of and priority established by;

IC 37-2-6-4 in the same manner as a garnishment. An income withholding under this chapter is not an assignment of wages under IC 22-2-6.

(3) Begin withholding the amount determined under subdivision (2) from the individual's income beginning with the first pay period that occurs not later than fourteen (14) days after the date the employer receives the notice sent under section 3 of this chapter.

(4) Remit the amount withheld under subdivision (2) to the department by check or electronic payment (as defined by IC 5-27-2-3) not later than seven (7) days after the date of each regularly scheduled pay day.

(5) Continue withholding under this section until:

(A) the department notifies the employer to discontinue the withholding; or

(B) the full amount required to be paid to the department has been paid, as indicated by a written statement to the employer from the department.

(6) Notify the department, if the individual subject to withholding terminates employment, including the individual's last known address and the name of any new employer, if known.

(b) An employer that is required to withhold income under subsection (a)(2) may collect a fee equal to twelve dollars ($12). If the employer chooses to impose a fee, the fee shall be allocated as follows:

(1) Fifty percent (50%) of the fee shall be paid by the individual subject to withholding, and that amount is deductible by the employer from the individual's disposable earnings (as defined in IC 37-2-6-4(a)(1)).

(2) Fifty percent (50%) of the fee shall be paid by the department.

The fee may be collected only once by an employer for each notice provided by the department under section 3 of this chapter. The employer may collect the entire fee from one (1) or more of the initial withholdings from the individual's disposable earnings, or alternatively, the employer may collect the fee ratably over the number of pay periods for which the withholdings from the individual's disposable earnings are required. If an employer chooses to collect a fee under this subsection, the employer shall notify the department in the manner and form prescribed by the department, and the amount to be withheld must be reduced, if necessary, to avoid exceeding the maximum amount permitted to be deducted under IC 37-2-6-4(c). A fee collected under this subsection is not an assignment of wages under IC 22-2-6.

As added by P.L.183-2015, SEC.5. Amended by P.L.66-2018, SEC.2; P.L.115-2026, SEC.15.

IC 22-4-13.3-5Employer may not discriminate against employee because of income withholding; employee remedies Sec. 5. (a) An employer may not use the withholding of income to collect an overpayment to the department as a basis for:

(1) refusing to hire a potential employee;

(2) discharging an employee; or

(3) taking disciplinary action against an employee.

(b) If:

(1) an employee reasonably believes that an employer took an action described in subsection (a); and

(2) the employee was adversely affected by the employer's action;

the employee may bring a suit against the employer in a court with jurisdiction.

(c) If a court determines that an employer took an action described in subsection (a), the employer may be:

(1) ordered to hire or reinstate an employee who was adversely affected by the employer's action without loss of pay or benefits; and

(2) fined an amount not to exceed one thousand dollars ($1,000).

As added by P.L.183-2015, SEC.5.

IC 22-4-13.3-6Employer refusal to withhold income or income misrepresented; department remedies Sec. 6. (a) An employer that refuses to withhold income as required by this chapter or knowingly misrepresents the income of an employee:

(1) is liable to the department for the amount that the employer failed to withhold from an employee's income; and

(2) may be ordered to pay punitive damages to the department in an amount not to exceed one thousand dollars ($1,000) for each pay period the employer failed to withhold income as required or knowingly misrepresented the income of the employee.

(b) The department may institute a civil action in a court with jurisdiction requesting that the court direct the employer to appear and to show cause why the penalties described in this section should not be assessed.

(c) At the hearing on the order to show cause, the court, upon a finding that the employer refused to withhold income as required or knowingly misrepresented an employee's income:

(1) shall require the employer to pay the amount the employer failed or refused to withhold from the employee's income;

(2) may order the employer to provide accurate information concerning an employee's income;

(3) may assess against the employer punitive damages under subsection (a)(2); and

(4) may order the employer to otherwise comply with this chapter.

As added by P.L.183-2015, SEC.5.

IC 22-4-13.3-7Employer and department immunity; limitations on income withholding; rulemaking authority Sec. 7. (a) An employer that complies with a notice described in section 3 of this chapter that is regular on its face is not liable in any civil action for any conduct taken in compliance with the notice.

(b) An employer that complies with a notice described in section 3 of this chapter is discharged from liability to an employee for the part of the employee's income that was withheld in compliance with the notice.

(c) If a court issues an order to stay a withholding of income, the department is not liable in any civil action to an individual who is the subject of the income withholding for amounts withheld from the individual's income before the stay becomes effective.

(d) Administrative income withholdings issued under this chapter are subject to the limitations set forth in IC 37-2-6-4. A withholding under this chapter is not an assignment of wages under IC 22-2-6.

(e) The department may adopt rules under IC 4-22-2 to carry out the department's responsibilities under this chapter.

As added by P.L.183-2015, SEC.5. Amended by P.L.93-2024, SEC.156; P.L.115-2026, SEC.16.

IC 22-4-13.3-8Contest of income withholding; basis for contest; administrative hearing; review of administrative decision Sec. 8. (a) An individual who receives a notice under section 2 of this chapter may contest the withholding and assert exemptions by requesting, in writing, not later than fifteen (15) days after the date on the notice, an administrative hearing by an administrative law judge of the department.

(b) An administrative hearing under this section may be conducted in either of the following ways:

(1) As a written records or "paper" hearing conducted by review of written materials and other records.

(2) As a telephone or in person hearing conducted by review of written materials and testimony.

(c) An individual who contests an income withholding is entitled to:

(1) an opportunity to inspect and copy records relating to the overpayment;

(2) an opportunity to enter into a written agreement with the department to establish a schedule for repayment of the overpayment; and

(3) an opportunity for an administrative hearing conducted by an administrative law judge of the department.

(d) An individual may contest an income withholding on the following grounds:

(1) That the existence, past due status, or the amount of the overpayment is incorrect.

(2) That the amount withheld was incorrectly calculated.

(3) That the overpayment is unenforceable as a matter of law.

(e) The department is not required to provide more than one (1) hearing based on the same grounds or objections. If:

(1) the department has already provided a hearing on the existence or the amount of the overpayment; and

(2) the employee does not have new evidence concerning the overpayment;

the department may not repeat the hearing on the existence or amount of the overpayment.

(f) The department's evidence concerning the existence, past due status, and amount of the overpayment is automatically admitted as evidence in the administrative hearing and must be considered by the administrative law judge.

(g) An individual who receives an adverse decision following an administrative hearing under this section may submit, not later than fifteen (15) days after the date of the decision, a request in writing to the commissioner that the commissioner or the commissioner's designee review the decision in the manner prescribed by the department. If the commissioner appoints a designee to review the decision, the commissioner shall not appoint as a designee an employee of the department's unemployment insurance program. The decision of the commissioner or the commissioner's designee under this subsection is final.

As added by P.L.183-2015, SEC.5. Amended by P.L.66-2018, SEC.3.

IC 22-4-14Chapter 14. Eligibility for Benefits

22-4-14-0.1Application of certain amendments to chapter 22-4-14-1Claims; inverse seniority layoffs 22-4-14-2Employment offices; registration; reporting; job counseling and training 22-4-14-3Availability for full-time work required to receive benefits; exceptions; work search activities 22-4-14-3.2Required visit and orientation to one stop center services; exceptions 22-4-14-3.5Reemployment services; reemployment and eligibility assessment activities 22-4-14-4Waiting period 22-4-14-5Wage credits 22-4-14-6Extended benefits; eligibility 22-4-14-6.1Extended benefits; classification 22-4-14-6.3Extended benefits; referral to suitable work 22-4-14-6.5Extended benefits; failure to accept or apply for suitable work 22-4-14-6.7Extended benefits; systematic and sustained effort; tangible evidence of an active search 22-4-14-6.9Extended benefits; "on" and "off" indicators 22-4-14-7Institutions of higher education and other educational institutions; service providers to or on behalf of educational institutions 22-4-14-8Sports; period between seasons 22-4-14-9Aliens 22-4-14-10Repealed 22-4-14-11Seasonal employment 22-4-14-12Partial or part-total unemployment; eligibility