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Natasha Orlova

EDD SDI overpayment notice for pregnancy leave - employer applied sick time I didn't authorize

I'm 8 weeks into my pregnancy disability leave, and just got hit with an overpayment notice from EDD. The letter says my employer applied sick time during my 7-day waiting period without my knowledge, which caused the overpayment. I'm so confused because I specifically told HR I wanted to SAVE my sick time for when I return to work (in case my baby gets sick). I checked my employee handbook and apparently there's fine print saying they 'automatically apply accrued time' during disability unless specified otherwise. I never saw this before! Two questions: 1. Has anyone successfully appealed an overpayment in this situation? I'll pay it back if I have to, but I'm wondering if there's any way to get them to take the sick time back and apply it later instead. 2. I just received a performance bonus from last year ($5,900) while on leave. Do I need to report this to EDD? Will this affect my disability payments going forward? This whole process is so overwhelming on top of being pregnant. Any advice appreciated!

Javier Cruz

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same thing happend to me last yr! my work did the EXACT same thing with vacation time i didnt ask them 2 use. ended up having to repay like $1400 to EDD. its total bs but they dont care whose fault it is, u still gotta pay

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That's so frustrating! Did you try fighting it at all or just pay it back? I'm wondering if I should even bother trying to appeal.

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Emma Thompson

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You definitely need to report that bonus to EDD. According to their rules, any income received during your disability period has to be reported, even if it was earned before your disability started. You report it for the week you actually receive the payment. For the overpayment issue - this is unfortunately common. Many employers automatically apply sick leave during the waiting period. You can try to appeal, but honestly, since it's spelled out in your company's policy, EDD will likely side with them. The fastest resolution is usually to set up a payment plan with EDD.

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Thanks for the info about the bonus. Do you know how I report it? Do I call them or is there a form on the website? I definitely don't want to cause another overpayment situation!

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Malik Jackson

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I had something similar happen during my maternity leave last year and it was a NIGHTMARE trying to get through to EDD to explain the situation. I kept getting disconnected or waiting on hold for hours! Has anyone found a reliable way to actually talk to a live person there????

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I was in the same boat trying to reach EDD about my pregnancy disability claim last month. After days of frustration, I found this service called Claimyr (claimyr.com) that got me through to an actual EDD representative in about 20 minutes. They have a video showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd It was completely worth it because the EDD rep was able to explain exactly what happened with my claim and how to fix the overpayment issue. For your bonus question, they'll need to know when you received it and the gross amount. Better to talk to them directly about it than guess and potentially create another problem.

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StarSurfer

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Having worked with many clients who've faced this exact situation, here's what you need to understand: 1. Regarding the overpayment: California EDD regulations state that if you receive wages during your waiting period (including sick pay, PTO, etc.), you're not eligible for SDI benefits for those same days. Since your employer's policy about automatically applying sick time was in writing, even if you didn't read it, you'll likely need to repay. 2. About your bonus: Yes, you MUST report this. Use the "Report Wages" function in your SDI Online account. Report it for the benefit week when you physically received the payment, not when it was earned. Bonuses count as wages and will reduce your benefit for that week. 3. Important documentation: Keep copies of all communication with your employer about this sick time issue. If you decide to appeal, you'll need evidence showing you specifically requested not to use sick time. Most efficient resolution: Call EDD directly to set up a repayment plan for the overpayment amount. They can typically offer installment plans that won't cause financial hardship.

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Thank you so much for this detailed response! I didn't know about the "Report Wages" function - that's super helpful. I'm going to call them tomorrow about setting up a repayment plan. I'm guessing I'll need to just accept the situation with the sick time since it was in their policy, even though I didn't know about it.

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Ravi Malhotra

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EDD IS THE WORST!!!! They are DELIBERATELY confusing about these rules to catch people in overpayments. I had THREE different overpayment notices during my pregnancy disability and PFL last year. They make it IMPOSSIBLE to talk to anyone who can actually help. The whole system is designed to make you give up and just pay whatever they say you owe even when it's THEIR MISTAKE not yours!!!!

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i dont think its deliberate... the system is just old and broken. but yeah ive been thru 2 disability claims and both had problems. still better than getting nothing tho

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Omar Hassan

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wait so does SDI and PFL have different rules on this? im planning to take pregnancy disability then baby bonding leave next year and now im worried about all these complications...

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StarSurfer

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Yes, SDI and PFL have some different rules, though both are administered by EDD. SDI (for pregnancy disability): - Has a 7-day unpaid waiting period - Employers often apply sick leave during this period - Pays approximately 60-70% of your wages - Typically covers 4 weeks before birth and 6-8 weeks after PFL (for baby bonding): - No waiting period - Cannot be taken at the same time as SDI - Also pays about 60-70% of wages - Provides up to 8 weeks of benefits The main thing to coordinate with your employer before your leave is exactly how your accrued sick time, vacation time, or PTO will be applied. Get this in writing and keep good records to avoid surprises like what the original poster experienced.

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Emma Thompson

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Just to clarify about reporting the bonus - when you report it through SDI Online, it will likely reduce your benefit amount for that week only. Bonuses are considered wages in the week they're received. The reduction follows this formula: If your weekly SDI benefit is $X and your bonus minus $100 is greater than $X, you'll receive no benefit that week. If your bonus minus $100 is less than your weekly benefit, you'll receive the difference. For example, if your weekly SDI benefit is $1,400 and your bonus was $5,900, you'd receive no benefit for that week (since $5,900 - $100 = $5,800, which exceeds $1,400). It won't affect your benefits for other weeks though, so don't worry about it impacting your entire claim.

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This is super helpful - thank you! I received the bonus last week, so I'm guessing that means I won't get any SDI payment for that week. That makes sense. At least it won't affect future payments.

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Javier Cruz

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wait i just reread ur post - ur still on pregnancy disability? not baby bonding leave yet? make sure u know the difference cuz i got confused and it caused problems with my claim!

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Yes, I'm still on pregnancy disability (SDI). My baby is due in about 4 weeks, so after recovery I'll switch to the baby bonding (PFL) portion. Thanks for checking though - the whole system is definitely confusing!

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Zara Mirza

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I went through almost the exact same situation when I was on pregnancy disability last year! My employer also automatically applied sick time during my waiting period without asking, and I got hit with a $900 overpayment notice. What helped me was documenting everything - I found the email where I specifically told HR I wanted to save my sick days, and I also had them put in writing that their policy wasn't clearly communicated to employees. I did appeal, and while it took about 6 weeks, they actually reduced the overpayment amount by about 40% because I could prove I wasn't properly informed about their automatic sick leave policy. For your bonus, definitely report it ASAP through the SDI Online portal. I had a similar situation with a year-end bonus and the key is reporting it quickly to avoid any issues. The system will automatically calculate how it affects that week's benefit. One tip that really helped me - document EVERYTHING going forward. Take screenshots of your communications with both your employer and EDD, and keep copies of all notices. If anything else comes up during your PFL period, you'll be prepared!

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Mae Bennett

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This gives me hope! Thank you for sharing your experience. I do have an email where I specifically told HR I wanted to keep my sick time for after I return to work, so maybe I have a shot at reducing the overpayment amount. Did you hire a lawyer or represent yourself in the appeal? I'm wondering if it's worth the effort or if I should just focus on setting up a payment plan like others suggested.

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