Have you received a notice of overpayment from the California Employment Development Department (EDD)? If so, it is important that you do not put off dealing with the EDD. Here’s what you need to know:

What Does the EDD Do?

The EDD has many responsibilities, which include paying out Unemployment Insurance (UI), Disability Insurance (DI) and Paid Family Leave (PFL) benefits. The EDD can also collect overpayment funds if you received paid benefits that you were not entitled to collect.

What is an Overpayment?

An overpayment is when the Employment Development Department (EDD) determines that you received benefits that you were not entitled to collect. This can happen if an error was made when issuing payment(s) or if the benefits were claimed through fraud. If the EDD decides that an overpayment has occurred, you will first receive a notice of overpayment. The most common reasons include:

  • If the information that your employer reported about your earnings or your employment information does not match what you provided to the EDD
  • Untruthful or inaccurate information was used for certification of benefits
  • If you lose an appeal after being granted UI benefits
  • The EDD mistakenly sent you benefit payments

If a repayment plan or proof that you do not owe anything is not worked out with the EDD, the collection process will escalate. This is why you should move quickly to discuss repayment options or provide legal proof that nothing is owed.

What To Do If You Get a Notice of Overpayment

If you feel that this is a mistake, you should file an appeal. You will need to complete the appeal form that should have arrived with your Notice of Overpayment. This form is also online and can be found by clicking here: Appeal Form. However, if you agree that the overpayment is correct, contact the EDD right away to make repayment arrangements.

Did You Also Receive a Notice of Determination?

You should also appeal the Notice of Determination. This document that informs you of EDD’s decision that you were not eligible for Unemployment Insurance benefits, and includes why that decision was made.

On the Appeal Form, you can explain why you disagree with the EDD’s decision. Be sure to keep your statement brief. According to Legal Aid at Work, it can be as simple as “I disagree with EDD’s decision. I believe I am eligible for benefits and should not have been assessed an overpayment.”

It is important to send your appeal within 30 days of the date on your Notice of Overpayment. But, if 30 days has already passed, you should still send the appeal.

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:

  • Wage Garnishment
  • State or Federal Tax Return
  • Bank Levy
  • Lien
  • 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.

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 to get to know you and 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.