WAC 192-230-110   May I negotiate with the department to repay less than the full amount? -- RCW 50.24.020.  (1) Yes. State law permits the department to accept an offer in compromise for less than the full amount owed. For purposes of this chapter, an offer in compromise is referred to as a negotiated settlement.

     (2) Except as provided in subsection (3), a negotiated settlement of the overpayment for less than the full amount owed will be considered under subsection (2)(a). Settlement offers may also be made by authorized department staff.

     (a) The department will consider a settlement offer when it would be against equity and good conscience to require you to repay the full amount. The department may consider, but is not limited to, the following factors in making this decision:

     (i) Your general health, including disability, competency, and mental or physical impairment;

     (ii) Your education level, including literacy;

     (iii) Whether you are currently employed and your history of unemployment;

     (iv) Your future earnings potential based on your occupation, skills, and the local labor market;

     (v) Your marital status and number of dependents, including whether other household members are employed; and

     (vi) Other factors indicating that collection of the full amount would cause you undue economic, physical, or mental hardship and you are unable to provide for basic necessities as described in WAC 192-220-030(2).

     (b) In considering settlement offers, the emphasis will be on what is financially advantageous to the department. The department will consider the costs of collection compared to the amount of the overpayment. In doing so, the department may consider such factors as the age and amount of the overpayment, the number of prior contacts with you, whether you previously made good faith efforts to pay the debt, the tools available to enforce collection, and other information relevant to your ability to repay.

     (c) If you previously applied for a waiver and were denied and your circumstances have significantly changed, such as catastrophic illness or loss of income, you may ask to negotiate a settlement for less than the full amount of the overpayment.

     (3) A negotiated settlement for less than the full amount owed will not be considered when:

     (a) The overpayment is the result of a discharge for misconduct or gross misconduct (see RCW 50.20.066(5));

     (b) The overpayment decision was issued by a state other than Washington; or

     (c) The overpayment is for disaster unemployment assistance benefits paid under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

     (4) The department's decision to accept or reject a settlement offer is final. However, if the settlement offer is rejected, you are permitted to make another offer at a later date if circumstances change.



[Statutory Authority: RCW 50.12.010, 51.12.040, and 50.20.010. 08-21-056, § 192-230-110, filed 10/9/08, effective 11/9/08.]