Section 657.785 - Agreement for Interstate Reciprocal Overpayment Recovery Arrangement(1) The Director of the Employment Department may enter into an agreement or agreements with any other state's employment security agency, or group thereof, including the Interstate Reciprocal Overpayment Recovery Arrangement, for the mutual and reciprocal recovery of overpaid unemployment compensation benefits. Notwithstanding any other provision of this chapter, the director may withhold from benefits otherwise due amounts necessary to recover overpaid benefits on behalf of other states with which the director has entered into such mutual and reciprocal agreements.(2) For purposes of this section, "states" includes the District of Columbia, Puerto Rico and the Virgin Islands.