Section 40 Backpay and Unemployment Compensation

• Library: Personnel Hearings 2011

Section 288.381.2, RSMo Supp. 2010, provides that a claimant for unemployment benefits who is later found to be entitled to backpay for the period of time during which unemployment benefits were collected will have an overpayment established equaling the benefits or the backpay award, whichever is less. After the claimant has had an opportunity for a fair hearing on this matter, the employer is required to withhold from the employee’s backpay award the amount of the assessed overpayment and to separately designate and pay that amount directly to the Division of Employment Security (the Division). Section 288.381.2.

For the purpose of § 288.381.2, the Division is required to inform the employer regarding the amount of benefits paid the claimant. Section 288.381.3. Section 288.381.4 provides that “[a]ny individual, company, association, corporation, partnership, bureau, agency or the agent or employee” of any such entity who causes the employer to fail to comply with §...