EDD overpayment disaster after Workers Comp case - bank account levied without notice!

this is such BS!!! i swear EDD is the WORST agency in california. they do this ALL THE TIME - claiming overpayments years later when ppl can't defend themselves. and now they're garnishing ur $$ without even waiting for ur WC case to finish?? thats not even legal from what i understand!!! when i had a similar problem (not with WC but with backpay) they took 40% of my checks for MONTHS. did u get any paperwork at all before they levied ur account??

None at all! That's what really shocked me. I just suddenly couldn't access my money. The bank told me EDD put a levy on my account. Since I moved around a lot during my homeless period, I think they were sending notices to old addresses. But shouldn't they have to make a better effort to contact me before just taking my money?

You're dealing with two entirely separate systems that don't communicate well with each other. Here's what's happening:\n\n1. EDD considers UI and Workers' Comp to be duplicate benefits for the same issue (inability to work)\n2. When you received UI benefits during a period that was later covered by a WC claim, EDD automatically considers this an overpayment\n3. However, the representative who told you they would \

Thank you for the clear explanation! I'll look up that DE 1000M form right away. What bothers me is that I never actually received any WC benefits yet - my case is still pending after 5 years. So how can they say I got duplicate benefits? My attorney knows about the situation but says WC and EDD are separate systems and he can't do much about the EDD side.

had a kinda similar thing happen to me but with SDI and workers comp. EDD is always right even when they're wrong 🙄 the whole thing is designed to exhaust u so u just give up and pay

EXACTLY!! they count on ppl giving up because the appeal process is so complicated. and most ppl cant afford a lawyer just to fight EDD!

This is unfortunately a common situation. The problem is that when you applied for Workers' Comp, you created a potential \

Thank you for the specific advice. I've been trying that collections number for days but it's always busy or disconnects me after I wait on hold. Is there any other way to reach them? The hardship waiver sounds important - where do I find that form?

Have you tried using Claimyr to reach EDD? I was in a similar situation with an SDI overpayment issue and couldn't get through on the phone for weeks. A friend told me about claimyr.com which basically calls EDD for you and connects you when they get through to an agent. Saved me hours of hold time. They have a video demo at https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd that shows how it works. I actually got through to someone who could help with my appeal and explain my options. For overpayment issues, you definitely need to talk to an actual person.

I've never heard of that service. I'm desperate enough to try anything at this point. Did they actually help resolve your overpayment issue or just connect you to EDD? I'm worried even if I get through, the representative won't have the authority to help with a levy that's already happened.

They just connect you to EDD, but they get you through to an actual person instead of waiting on hold forever or getting disconnected. When I got through, I asked to speak specifically with someone in the collections department who could help with levies and overpayments. That's when I found out I could file for a hardship request to temporarily stop collections while appealing.

That would be so helpful. I'll check it out. At this point I just need to talk to a real person who can tell me my options.

The hardship waiver is part of the personal financial statement form DE 6789. You'll need to provide detailed financial information showing that repayment would cause significant financial hardship. \n\nRegarding your original question about whether they can take your money before WC is settled - technically, yes. In the EDD's view, you became ineligible for UI the moment you filed for WC that covered the same period, regardless of whether you received WC benefits.\n\nHowever, you have legitimate grounds for appeal based on:\n1. Incorrect guidance from an EDD representative\n2. Lack of proper notification\n3. No actual receipt of duplicate benefits\n\nThe Appeals process can be lengthy but has worked for people in similar situations. Document everything meticulously.

Good advice but you're forgetting about the statute of limitations! If it's been 5 years since the original UI claim, OP might be able to argue that EDD waited too long to collect. The standard limit is 3 years unless fraud is involved, which doesn't sound like the case here. Definitely worth mentioning this in the appeal!

You're absolutely right - I should have mentioned the statute of limitations. For non-fraud overpayments, EDD generally has 3 years to assess the overpayment. However, once assessed, they can collect for up to 10 years. The key question is when EDD first determined there was an overpayment and sent notices (even if OP didn't receive them due to housing instability). This timeline detail could be crucial for the appeal.

i dont think its right that they can garnish ur bank account like that without even proving that u got benefits from both places! my cousin went thru something kinda the same with sdi and ui where they said he couldnt get both but he never even got approved for one of them. he had to go to his state assembly persons office for help. maybe try contacting your local state rep?

That's a good idea! I didn't even think about contacting my state representative. Did your cousin actually get help that way? I'll look up who represents my district.

when i was dealing with EDD last year they kept saying they sent me notices but i never got ANY of them. then they act like its ur fault for not responding to stuff u never got smh

You're getting some good advice here, but I want to add something important: EDD should have sent you a Notice of Overpayment (DE 1444) before taking any collection action. This notice would explain their determination and your right to appeal.\n\nThe fact that you were homeless and didn't receive these notices is relevant. Under California's \

This is excellent advice, especially about requesting immediate release of the bank levy. One addition: when filing the DE 1000M appeal form, clearly state at the top \