EDD Disability payments with existing overpayment debt - will they garnish my SDI benefits?
I'm about to file for disability due to a back injury that's going to keep me out of work for at least 8 weeks. Here's my situation: I had unemployment benefits back in 2023 and apparently they overpaid me around $2,700 because I reported my part-time hours wrong (totally my fault). I set up a payment plan but still owe about $1,800. Now I'm worried that if I apply for SDI, they'll just take all that money to pay back my UI debt. Does anyone know if EDD disability is completely separate from unemployment debt collection? Or will they just automatically deduct what I owe from my disability payments? I really need the full amount of my SDI to cover bills while I recover. My doctor is submitting the medical certification tomorrow but I'm hesitating to complete my part of the claim.
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Yuki Tanaka
they r separate. my cousin had the same thing happen and got all his disability $$$
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NeonNova
•That's a relief to hear. Did he still have to make payments on his overpayment during his disability period or did they pause the collections?
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Carmen Diaz
They are technically separate programs, but EDD can and sometimes does cross-collect between their different benefit programs. It depends on your specific situation and sometimes who reviews your claim. When I had an overpayment on UI and then went on disability last year, they did take about 25% of each disability payment to apply toward my UI debt. I called and explained my hardship situation and they reduced it to 10%. You should definitely still apply for disability - don't let the overpayment stop you from getting benefits you're entitled to. Just be prepared that they might take a portion.
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Andre Laurent
•This is accurate. EDD does have the ability to cross-collect between UI and SDI, but there are important protections in place. They can only garnish up to 25% of your SDI weekly benefit amount for an existing overpayment. You also have the right to request a reduction or temporary suspension of collection based on financial hardship. You'll need to call EDD and specifically request a "financial hardship reduction" for your repayment plan once your SDI benefits start. Document everything carefully and get any agreements in writing.
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Emily Jackson
I worked at Target with a lady that had the SAME EXACT problem!! They took like half her disability checks to pay back some unemployment thing from like 2 years before and she couldn't even pay rent!! The system is SO BROKEN!!! 😡😡😡
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Liam Mendez
•That's really concerning to hear. I wonder if there's any way to appeal that kind of aggressive collection? 50% seems extremely high and defeats the whole purpose of disability payments. Has anyone successfully appealed an EDD collection amount?
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Sophia Nguyen
When I had SDI last summer for my gallbladder surgery they didn't take anything from my checks even though I had a small overpayment from before. But then after I went back to work they started sending me letters again about the overpayment. So maybe they just pause it? Idk for sure tho just my experience
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NeonNova
•Thanks for sharing your experience! That's interesting that they paused collections during your disability period. I wonder if that was automatic or if you requested it. Maybe I'll get lucky and have the same thing happen.
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Jacob Smithson
I've been dealing with EDD for years now both with disability claims and unfortunately some overpayment issues too. Here's what I know for sure: 1. EDD can legally collect overpayments from any benefit program they administer (UI, SDI, PFL). 2. They're supposed to cap collections at 25% of your weekly benefit amount. 3. You can request a reduced collection amount or temporary suspension if you can demonstrate financial hardship. 4. You MUST make this request directly - it won't happen automatically. The problem is actually REACHING someone at EDD to make this request! I spent 3 weeks trying to get through before I discovered Claimyr (claimyr.com). They got me connected to an EDD representative in under 20 minutes. They have a video showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd. I was able to get my collection reduced from 25% to 5% during my disability period after explaining my situation to the rep. Definitely worth it since I never could get through on my own.
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Isabella Brown
•wait is this legit? i thought those services that call for you were scams? has anyone else used this before???
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Carmen Diaz
•I've used it twice. It's basically a callback service that navigates EDD's phone tree and waits on hold for you, then calls you when they get an agent. Saved me hours of frustration. Not free, but worth it when you're desperate to talk to someone.
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NeonNova
Thank you everyone for all the information! I'm going to go ahead and file my SDI claim today since it sounds like at worst they'll take a portion, not the whole amount. I'll definitely try requesting a hardship reduction if they do start collecting. Really appreciate all the help!
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Yuki Tanaka
•good luck! hope ur back feels better soon
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Liam Mendez
I had a somewhat similar situation but with paid family leave (PFL), not disability. I had an overpayment from UI and they did take 25% of each PFL payment. I wish I'd known about requesting a reduction because that really hurt my finances while I was caring for my mom. Make sure you get your hardship request in early!
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NeonNova
•I'm sorry that happened with your PFL claim. I'll definitely make the hardship request right away. Did they automatically start taking the 25% from your first payment, or did it start later?
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Liam Mendez
•It started with my very first payment. No warning or anything - just 25% less than what I was expecting. I almost couldn't pay my car insurance that month because I had budgeted based on the full amount.
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