Happy Friday team,
This week’s tip covers a question that came up earlier this week- how to recover TTD overpayments from claimants!
JOHN’S GA TIP OF THE WEEK: How to Recoup an Overpayment of Income Benefits!
HYPO
- The Employer/Insurer is forced to commence TTD benefits based on an estimated average weekly wage (AWW) due to an outstanding Wage Statement. The Employer then submits the Wage Statement showing the Claimant’s actual AWW is much lower than the estimated AWW resulting in a $5,000.00 overpayment.
- How does the Employer/Insurer recoup the $5,000.00 overpayment?
RULE
- Should the board find that a claimant has received an overpayment of income benefits from the employer, for any reason, the board shall have the authority to order repayment on terms acceptable to the parties or within the discretion of the board. No claim for reimbursement shall be allowed where the application for reimbursement is filed more than two years from the date such overpayment was made. O.C.G.A. § 34-9-245 Repayment of Overpayment by Claimant.
- NOTE: Credit/reduction of benefits for employer funded payments pursuant to a disability plan falls under O.C.G.A. § 34-9-243!
REDUCTION OF WEEKLY BENEFITS
- If the overpayment is undisputed, the Employer/Insurer should: (1) reach an agreement with the Claimant/opposing counsel on an amount to deducted from the Claimant’s weekly TTD benefits until the overpayment is satisfied, then (2) memorialize the agreement with a Consent Order.
- If the claimant/opposing counsel dispute the overpayment OR will not agree to the proposed weekly deduction, the Employer/Insurer will be forced to litigate the issue by either Requesting a Hearing seeking reimbursement of the overpayment or filing a motion for reimbursement of the overpayment and (assessed attorney fees!).
BEWARE !!
- Requests for reimbursements must be filed within two years from the date of the overpayment!
- An Employer is entitled to a credit for overpayments made to a claimant, but only for those made within the two years prior to the employer’s request for reimbursement. Reny Thrift Store, Inc. v. Figueroa, 286 Ga. App 455.
I hope everyone has a great weekend! As always, feel free to email/call/text if you run into any Georgia questions/issues.
Sincerely,
John Fennelly | Junior Partner