In previous posts we’ve explored what an EDD Notice of Overpayment is and how to appeal that notice. But, what happens if you lose your appeal?
What Happens If I Do Not Win?
If you are found to be at fault in the appeal, you can next appeal the decision with the California Unemployment Insurance Appeal Board (CUIAB) or your county Superior Court. The same procedure that was outlined in our previous post will apply, but you should consult an attorney if you would like to appeal the appeal decision by the Administrative Law Judge (ALJ).
What If I Decide Not to Appeal The Decision?
If your appeal is denied and you do not appeal further or if you have already lost additional appeals, you’ll be asked to repay the overpayment amount. You will receive a Financial Statement form if you are found to not be at fault.
The Financial Statement should be completed and returned as soon as possible. The EDD will use the information you provide to determine how much money to ask you to repay. This informations is also key to any reduction or forgiveness in the repayment amount. If you did not receive the Financial Statement form, you will likely be asked to repay the entire overpayment amount.
How Can the EDD Collect Overpayments?
Remember, the manner in which the EDD will collect your overpayment depends on the total amount owned that is owed and your current assets. The following are the most frequently used methods of collection:
- Monthly Repayments
- Wage Garnishment
- State or Federal Tax Refund (can last up to 6 years)
- Bank Levy
- Unemployment or Disability
- Lottery Winnings
Keep in mind that there are limits to the amount the the EDD can demand from you and your assets. They are unable to take more than your current living expenses. Also, in the event of a wage garnishment, a lawsuit would need to be filed within one year of final overpayment decision. If no action is taken and no additional UI or disability insurance benefits are filed, your overpayment will be waived after 3 years.
What If I Decide to Make Monthly Payments?
You may be asked to sign a written agreement to confirm your monthly payments. You will not need to sign this agreement. The EDD will gain additional time to file a lawsuit against you if you fail to repay the amount as planned. Without signing the agreement, the EDD will only have 1 year to file the lawsuit against you and collect. However, if you sign the repayment agreement, the EDD will have 4 years to file a lawsuit against you.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.