EDD SDI overpayment after appeal - do I have to repay $7,500 for legitimate disability claim?
I'm freaking out right now. I went on SDI in January 2025 due to severe anxiety/depression that was directly related to my workplace (hostile environment, manager harassment). My doctor fully supported this and completed all medical certification forms. I received about $7,500 in disability benefits over 3 months before finding a new job with a much better environment that accommodates my mental health needs. Here's the nightmare situation: my former employer somehow challenged my SDI claim (I didn't even know they could do this?!) claiming I wasn't actually disabled but just 'dissatisfied' with my job. I just got a notice yesterday that they won their appeal, and now EDD is saying my ENTIRE SDI claim was invalid and I owe back all $7,500! My doctor genuinely certified my condition. I followed all the rules. My medical records clearly document everything. There was no misrepresentation - just EDD initially approving my claim and now reversing their decision because my ex-employer disputed it. Do I really have to pay this all back? The letter mentions I can file my own appeal within 20 days. Has anyone dealt with this before? I'm absolutely devastated - I don't have $7,500 sitting around to repay them!
17 comments
Alice Fleming
This is definitely concerning, but don't panic yet. Yes, when an employer successfully appeals an SDI claim, EDD can determine that all benefits paid become an overpayment. However, you have strong grounds for your own appeal, especially with proper medical certification. You need to file that appeal ASAP - do not miss the 20-day deadline! In your appeal, include: - Copies of all medical documentation - A detailed letter from your doctor reaffirming your condition - Timeline of your symptoms and treatment - Any evidence of the hostile workplace that contributed to your condition You can also request a waiver of overpayment if repayment would cause financial hardship. The form is called DE 1446W. EDD can waive repayment if they determine you weren't at fault and recovery would be against equity and good conscience.
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Steven Adams
•Thank you so much. I'll start working on the appeal today. My doctor already said she'll provide additional documentation supporting my disability claim. Do you know if I need to repay while the appeal is pending? The letter isn't clear about this.
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Hassan Khoury
I went through something similar but with a smaller amount ($4,200). My employer claimed I could have performed "modified duties" instead of going on disability. I appealed and WON by providing detailed medical records and a strong letter from my psychiatrist explaining why I couldn't work in ANY capacity at that job due to the anxiety it was causing. The key is getting very specific medical documentation that directly addresses why you couldn't continue working there. Don't just submit the same documents as before - you need your doctor to specifically counter whatever argument your employer made about you being "just dissatisfied." I recommend calling EDD to get clarity on exactly WHY they ruled in your employer's favor. This will help you build a stronger appeal case.
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Steven Adams
•That's really helpful! Did you have to pay anything back while your appeal was being processed? And did you handle the appeal yourself or get legal help? I'm worried about saying the wrong thing and making my situation worse.
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Victoria Stark
this happened to my sister and she had to pay everthing back plus interest!! the system is totally rigged in favor of employers. they don't care about ur mental health at all, they just want to deny benifits. good luck but dont get ur hopes up
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Hassan Khoury
•That's not always the case. The system is challenging but not rigged. I won my appeal as I mentioned above. The key is having proper documentation and making your case clearly. Negative experiences are valid but shouldn't discourage others from pursuing their legitimate appeals.
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Benjamin Kim
I had to appeal an EDD decision last year (mine was PFL though, not SDI). The damn bureaucracy is INFURIATING. I tried calling them 37 TIMES over two weeks and couldn't get through!!! Kept getting disconnected or told the queue was full. Finally I found this service called Claimyr (claimyr.com) that got me connected to an actual EDD representative within 20 minutes. They have a video showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd Once I actually spoke to someone, they explained exactly what documentation I needed for my appeal and even put notes in my file. Made a HUGE difference in my case. Definitely worth trying if you need to speak to someone about your appeal options!
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Steven Adams
•Thank you! I've been trying to call since yesterday with no luck. I'll check out that service because I really need to talk to someone to understand my options before filing the appeal.
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Samantha Howard
wait im confused...i thought employers cant contest SDI claims? isnt that only for unemployment? SDI is for medical conditions certified by doctors, not employers. something seems off about this whole situation.
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Alice Fleming
•You're partially right - it's less common, but employers CAN contest SDI claims in certain circumstances. Typically this happens when: 1. They believe the medical condition is not legitimate or not disabling 2. They suspect the condition is work-related and should be a workers' comp claim instead 3. They have evidence the employee is working elsewhere while claiming disability In this case, it sounds like the employer successfully argued the condition wasn't legitimately disabling or that it wasn't properly certified. That's why having strong medical documentation for the appeal is so important.
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Megan D'Acosta
I'm going through the appeals process right now for a different reason (EDD thinks I was working while on disability, which I wasn't). The process is slow and stressful, but here's what helped me: 1. I immediately requested a payment plan to stop collection activities while appealing 2. I got a free consultation with a legal aid attorney who specializes in disability claims 3. I requested my complete claim file from EDD (this shows EXACTLY what info they used to make their decision) 4. I asked my doctor to write a new, very detailed letter specifically addressing the issues raised in the appeal Don't get discouraged! And definitely appeal within the deadline - you can always drop the appeal later if needed, but you can't start one after the deadline passes.
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Sarah Ali
•how did u get the free legal consult? im having a similar issue and don't have $$ for a lawyer
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Megan D'Acosta
•I called the Legal Aid Foundation in my county. Most areas have some form of free legal services for low-income people. Also check if there's a law school nearby - many have free clinics where law students (supervised by professors) help with these kinds of cases.
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Benjamin Kim
One more thing I forgot to mention - when you file your appeal, check the box requesting an in-person hearing rather than a phone hearing if possible. It's MUCH easier to present your case, show documentation, and make a personal impression on the judge when you're there in person. That was the advice my EDD rep gave me after I finally reached someone, and it made a huge difference in my case outcome.
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Ryan Vasquez
my cousin works for edd and she says most appeals for this type of situation actually get approved if u have good medical documentation. the first-level review is often pretty cursory but the appeals board looks at everything more carefully. don't give up!!!
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Steven Adams
•That's really encouraging to hear! I've been feeling so hopeless about this whole situation. I'm gathering all my documentation now and my doctor is writing a detailed letter explaining why my condition was legitimate and disabling. Fingers crossed the appeals board will look at everything more carefully than whoever handled the employer's appeal.
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Alice Fleming
Based on your follow-up questions, I wanted to clarify a few things: 1. Regarding payment during appeal: Technically, the overpayment is still due while under appeal. However, you can request a temporary hold due to financial hardship or set up a minimal payment plan ($10-20/month) to show good faith while your appeal is pending. 2. Legal representation: While not required for the initial appeal, if it moves to an Administrative Law Judge hearing, having representation is beneficial. As someone mentioned, check for legal aid services in your area. 3. Documentation strategy: Focus on having your doctor specifically address why your condition prevented you from working at THAT job. Mental health disabilities are legitimate disabilities under SDI, but the documentation needs to be explicit about how your condition prevented you from performing your specific job functions. Keep us updated on your progress. Many appeals are successful with proper documentation!
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