Section EMP.04.21 — Recovery For Compensation In Error Or Due To Fraud

(a) The worker shall repay such compensation that the worker is not entitled to and is received because of a clerical error, mistaken identity, innocent misrepresentation mistakenly acted upon, or any other circumstance of a similar nature and not induced by fraud.

(1) Recoupment may be made from any future payments due the worker on any worker's compensation claim.

(2) The insurer or employer must make a claim for such repayment or recoupment within one year of when the compensation is paid or the repayment shall be barred.

(3) The ALJ may waive, at its discretion and in whole or in part, the amount of such timely claim where the recovery would be against equity and good conscience.

(b) Whenever the payment of compensation to a worker has been induced by fraud, the recipient shall repay any such compensation together with a penalty of fifty percent (50%) of the total of any such payments.

(1) Recoupment may be made form any future payments due the worker on any worker's compensation claim.

(2) The insurer or employer shall make a claim for repayment or recoupment within one year of the discovery of the fraud.