Overpayment letters catch injured workers off guard: the weekly checks kept arriving for a while after the doctor cleared a return, the carrier computed the check from the wrong wage figure, or two offices each issued the same payment. This guide explains how those situations arise under Indiana law, what a carrier is actually allowed to deduct, what belongs in front of the Worker's Compensation Board of Indiana[3], and what to do about a repayment demand. For the claim process from the beginning, see our Indiana workers’ compensation guide page.
Key takeaways
- Temporary total disability that was overpaid through the termination process is credited against permanent partial impairment money still due on the claim.
- If nothing more is due, the statute makes the worker responsible for the difference.
- Other not-yet-due payments may be deducted from compensation only with Worker's Compensation Board approval under IC 22-3-3-23[1].
- An overpayment of ordinary wages is a different issue from overpaid comp benefits; wage-deduction rules do not automatically authorize collecting a comp debt from payroll.
- If a notice proposes stopping weekly payments, the written window to disagree is 7 days.
How do overpayments happen in an Indiana workers' comp claim?
Start by identifying what each payment covered. A deposit made after a return to work may pay for an earlier period. IC 22-3-3-7(d)[1] lists return to employment among grounds for ending TTD and requires written notice. The deposit date, the covered dates and the notice history therefore deserve separate entries in your records.
Common ways a claim ends up overpaid include:
- Checks that continue after a return to work, since IC 22-3-3-7(d)[4] lists a return to any employment as a ground for ending temporary total disability payments.
- A disputed wage figure: ask which earnings records and injury-date limits were used. Our wrong wage statement guide covers correction of the underlying wage inputs.
- Clerical and duplicate payments, such as two checks issued for the same pay period.
- Checks issued during a contested TTD termination. IC 22-3-3-7(f)–(g)[1] governs continued payments and a determined overpayment. Contesting termination does not by itself make every payment an overpayment.
A discrepancy alone does not establish bad faith or fraud. But once a carrier believes it paid money that was not yet owed, Indiana gives it specific, limited tools for getting the balance back.
What may a carrier deduct under Indiana law?
Two provisions of the Worker's Compensation Act do most of the work here, and they work in different ways.
The termination-overpayment credit. IC 22-3-3-7(g)[5] addresses temporary total disability that was overpaid through the termination process: the overpayment is deducted from any money still due the worker under the permanent partial impairment schedule, and if nothing is due, or the amount due is smaller than the overpayment, the worker is responsible for paying the difference.
The Board-approval rule for other early payments. Under IC 22-3-3-23(a)[2], payments that were not due and payable when made may be deducted from the compensation to be paid, but only subject to the approval of the Worker's Compensation Board, and the deduction is taken from the distal end of the payment period except in temporary-disability cases.
| Scenario | Governing Indiana law | Rule to check |
|---|---|---|
| TTD overpayment determined under section 7 | IC 22-3-3-7(d)[1] and 7(g) | Credited against permanent partial impairment money still due, and any shortfall is the worker's responsibility. |
| Early payments that were not yet due under the claim | IC 22-3-3-23(a)[1] | Subject to Board approval; deduction from the far end of the payment period except in temporary-disability cases. |
| Ordinary payroll overpaid your wages | IC 22-2-6-4[6] | Wage-specific notice and deduction limits; this is not automatic authority to deduct a comp overpayment. |
| You disagree with a notice to stop payments | IC 22-3-3-7(e)[1] | Written disagreement to the Board and employer within 7 days, then Board contact and possibly an independent medical exam. |
When does the Board have to approve a deduction?
The two provisions draw a line worth understanding. The termination-overpayment credit in IC 22-3-3-7(g)[1] is written as a directive: the overpayment is to be deducted from the money still due under the impairment schedule.
IC 22-3-3-23(a)[1] works the other way around: for payments that were not due and payable when made, the deduction happens only subject to the approval of the Worker's Compensation Board.
Check both the legal basis for the credit and the arithmetic: the dates covered, work status and amounts already credited.
Can the overpayment come out of your PPI award?
It can, when the section 7(g) rule applies and section 10 benefits remain due. That does not mean every worker will receive a PPI award or that receiving one automatically closes all parts of a claim.
IC 22-3-3-10[1] supplies the impairment schedule. Request the gross amount due, the proposed overpayment credit, any credit already taken and the net amount offered. The amount of a credit should not be hidden inside an unexplained smaller check.
A return to work does not answer every benefits question. IC 22-3-3-9[1] separately addresses temporary partial disability. If reduced earnings or continuing restrictions are involved, have the remaining entitlement checked before assuming the entire amount paid after the return date was excessive.
Simplified arithmetic example: assume an overpayment under section 7(g) is established at $900 and $2,400 in section 10 benefits remains due. Applying the credit leaves $1,500. If only $600 remains due, the $300 difference remains the worker’s responsibility under that provision. These invented amounts illustrate subtraction, not an estimate of a real PPI award or a determination that any particular check was overpaid.
That is worth checking rather than accepting. The deduction is only as good as the numbers behind it: the period the carrier says was overpaid, the day you actually went back, and the PPI math itself.
For the impairment calculation itself, see what an Indiana PPI rating is worth. Keep that calculation distinct from the carrier’s proposed credit.
Can your employer take it back out of your paycheck?
This question comes up when someone is back on the job and the demand arrives from payroll instead of the claims office.
Indiana has a wage-specific answer. If an employer has overpaid an employee's wages, IC 22-2-6-4[7] allows a deduction from later wages, but the employer must give the employee two weeks' notice before deducting.
The same provision limits the weekly bite: apart from the statute’s narrow exception for a tenfold gross wage overpayment caused by a misplaced decimal, the deduction may not exceed the lesser of 25% of the employee's disposable earnings for that week or the amount by which those earnings exceed 30 times the federal minimum hourly wage. Under IC 22-2-6-4(b)[6], an amount that is in dispute under Indiana's wage-claim process may not be deducted at all.
Section 22-2-6-4 concerns overpaid wages; it is not a general license to recover an insurer’s comp payment from your paycheck. Ask payroll to identify what was overpaid, who paid it and the legal authority for the proposed deduction. Obtain advice before signing a wage authorization or repayment agreement.
What should you do when an overpayment notice arrives?
First identify the document and keep a record of your response:
- Do not ignore the letter, and write down the date it arrived.
- Identify what you received: a repayment demand, a payroll deduction notice, or a notice of intent to stop weekly payments on a Board form.
- If it proposes stopping payments and you disagree, give written disagreement to both the Board and employer within 7 days after receipt under IC 22-3-3-7(e)[1]. Keep proof of timely delivery.
- Gather your own records: check stubs or deposit history, the date you went back to work, and your work-status notes.
- Ask the carrier, in writing, for its math: the period it says was overpaid, the weekly figure it used, and how it applied any credit.
- Get advice before signing a repayment agreement, a wage-deduction authorization, or settlement paperwork.
How do you dispute an overpayment with the Worker's Compensation Board?
What is the 7-day disagreement window?
If the carrier sends a notice of intent to stop temporary total disability payments — it arrives on State Form 38911 — the Board's informal-dispute process starts with your written disagreement, submitted within 7 days of receiving the notice, as described on the Board's Informal Disputes page[8].
After a timely disagreement, the Board contacts the parties, attempts to resolve the disagreement, and may arrange an evaluation by an independent medical examiner selected by agreement of the parties or appointed by the Board.
Under IC 22-3-3-7(e)[1], benefits terminate if the Board and employer do not receive a disagreement. This is the objection process for TTD termination, not a universal seven-day appeal deadline for every repayment letter. Do not assume a missed objection extinguishes every remaining claim; obtain prompt advice about the particular notice and claim record. Our guide to TTD termination in Indiana explains that process.
What if the dispute cannot be resolved informally?
For a general payment discrepancy, the Board’s informal assistance process[8] begins with Request for Assistance, State Form 45442. It authorizes an inquiry by a case coordinator; it is different from the termination objection on Form 38911. An informal request does not itself decide a contested overpayment.
The Board’s disputed-claims guidance[9] describes an Application for Adjustment of Claim, State Form 29109, for unresolved disputes that need a hearing. If a claim or award already exists, have counsel identify the appropriate filing in that matter.
IC 22-3-3-3[1] generally requires filing within two years after the accident. If TTD or TPD compensation was paid after the accident, subsection (b) starts the two-year application period on the last date for which that compensation was paid. That is not necessarily the date the check arrived. Exceptions and the status of an existing award can matter; do not calculate a personal deadline from an alleged overpayment alone.
For the formal filing process, see the Application for Adjustment of Claim guide. Asking the carrier for its calculation should not delay a required Board filing.
Make a payment-by-payment worksheet
Use one row for each check or deposit. Record the date received, benefit type, dates covered, amount paid, amount the carrier says was due and the stated reason for any difference. Add a column for credits already taken. Keep ordinary payroll on a separate sheet so the same dollar is not counted twice.
Compare that worksheet with return-to-work dates, work restrictions, termination notices and the proposed award. Watch for an earlier period paid late, a duplicate entry rather than a duplicate deposit, a partial week treated as a full week and a credit already deducted from another payment. Mark each disputed row and keep the source document beside it.
A neutral written request can say: “Please provide the payment ledger, covered dates, legal basis for the requested credit, calculation of the alleged excess and any credits already applied. I dispute the identified entries pending review.” This is an organizational example, not an official Board form, a promise of a response deadline or a substitute for a required objection. Use a secure method for personal records and keep originals.
Frequently asked questions
Do I have to pay back an Indiana workers' comp overpayment?
Sometimes. Under IC 22-3-3-7(g)[1], a determined TTD overpayment arising under that section is first deducted from section 10 benefits due, and the worker is responsible for the undeducted remainder. Confirm the legal basis and amount before treating an allegation as an established debt.
Does the carrier need permission to deduct old payments from my award?
For payments that were not due and payable when made, IC 22-3-3-23(a)[1] requires the Worker's Compensation Board's approval before they may be deducted from compensation.
Can payroll dock my paycheck over a comp overpayment?
The wage-overpayment provision, IC 22-2-6-4[6], governs overpaid wages. It does not automatically authorize payroll to collect a workers’ comp overpayment. Ask for the asserted legal basis and have a demand mixing wages and comp reviewed.
What if I already spent the money?
The structure of the credit helps here: under IC 22-3-3-7(g)[1] the deduction comes out of amounts still due on the claim, and the repayment obligation reaches only what those remaining amounts cannot absorb. In the meantime, do not agree to a repayment schedule you cannot keep before confirming the underlying figure is even right.
What happens if I ignore the notice?
If the notice proposes ending your weekly payments and no written disagreement reaches the Board and the employer within 7 days, the payments end on the strength of the notice itself. A separate repayment letter may raise different procedures. Keep it and obtain advice about the stated deadline and basis rather than assuming the seven-day rule applies to it.
Talk through an overpayment demand
If a carrier says you were overpaid and you are not sure the math or the process is right, you do not have to sort it out alone.
Chad Delventhal can review an overpayment demand, proposed credits and settlement paperwork for injured workers in Fort Wayne, Allen County, and across northeast Indiana.
Bring the letter, your check stubs, and any Board notices to a free case evaluation, or call (260) 484-6655.
This article provides general information about Indiana law, not legal advice. Examples are simplified. Reading it does not create an attorney-client relationship. Discuss your circumstances privately with an attorney.
The linked legal and official sources were checked on September 12, 2026.
