EDD taking money from my SDI to cover UI overpayment - what's happening?

Welcome to EDD hell! Yes they CAN take money from ur SDI to cover UI overpayments, its all the same department in their eyes. The right hand never knows what the left is doing there. I had almost the exact same thing happen last year - promised by a rep I wouldn't owe anything then BAM overpayment notice. Called back and got a completely different story from a different rep. They'll keep taking money until its paid unless you file an appeal or waiver request.

You still have options here. What you're experiencing is called an "offset" where EDD can legally withhold money from current benefits to pay past overpayments. However, since you were told by a representative that you wouldn't have to repay the amount, you should request an overpayment waiver. You can find the DE 1446W form on the EDD website to request a waiver based on "administrative error" - which is exactly what happened in your case. If the representative documented your case as promised, those notes should support your waiver request. You'll need to submit this ASAP as there are time limitations. For the payment question - yes, waiting for the Collection Notice to pay online is completely acceptable and won't be considered late payment as long as you pay within the timeframe specified on that notice.

I went through something similar this January. If you want to stop them from offsetting more of your SDI payments while your waiver request is being processed, call and request a temporary halt to collections. Make sure to mention that you were explicitly told by an EDD representative that you wouldn't need to repay this amount due to their error. Honestly, calling EDD is the biggest headache - I spent 3 days trying to get through before I finally got to speak with someone who could help with my overpayment situation. The hold times are ridiculous, and half the time you get disconnected after waiting for an hour.

If you have the name of the rep who told you that you wouldn't have to repay, definitely include that in your waiver request! Also, did you save any documents or communications from that initial conversation? Those will be crucial for your case. And YES - they absolutely can and will take money from your SDI to pay UI overpayments. It's all EDD, and they can offset from any benefit program to cover overpayments in another program. It's in the fine print that most people never read. One thing to be aware of: if you're filing a waiver, do it IMMEDIATELY. There's a limited window, and if you miss it, you'll be stuck paying the full amount regardless of whose fault it was.

I had a similer thing happn to me but with Paid Family Leave. they took like $300 from my PFL to pay back sum unemployment overpayment from like a year before!! No warning just a letter AFTER they already took the money! Is so annoying how they dont even need to ask permision to take ur money 😠

To answer your follow-up question: waiver processing times vary, but it generally takes 30-45 days. Unfortunately, yes, they will likely continue offsetting your benefits while the waiver is pending UNLESS you specifically request a temporary halt to collections as mentioned by another commenter. One important thing to note: if you do get the waiver approved and they've already collected some money through offsets (like that $107.57 they already took), they'll have to refund that amount to you. So keep careful track of all amounts deducted.

When I had a similar problem - though mine was a mix-up between regular SDI and pregnancy disability - I found that bringing up the specific California Unemployment Insurance Code Section 1375 was helpful. This code section discusses when overpayments can be waived due to administrative error. Just mentioning this specific code when I talked to representatives seemed to get their attention that I knew my rights. And yes, to echo what others have said, you absolutely need to request that temporary halt to collections while your waiver is being processed. Otherwise, they'll keep taking money and then you'll have to go through another process to get it refunded if your waiver is approved.

ok so everyone saying file a waiver is right BUT also the letter about overpayment should have info about appealing the determination itself!!! might want to do BOTH just to be safe. appeals have strict deadlines tho like 30 days i think?? check your notice

i didnt fight it cuz i heard its almost impossible to win against EDD!!! just let them take the money and moved on with my life. not worth the stress honestly

Update on waiver timelines based on my recent experience: I submitted my waiver in late 2024 and it took almost 60 days to process, not the 30-45 days others mentioned. The EDD is still experiencing significant backlogs. Just want you to have realistic expectations about timing. Also, make sure you keep certifying for your SDI benefits as normal throughout this whole process! That's critical - don't let the overpayment issue disrupt your current benefit payments.

Just want to add something that might help - when you call EDD to request that temporary halt to collections, make sure you get the representative's name and employee ID number. Write down the date and time of your call too. I learned this the hard way when a rep told me one thing over the phone but then nothing was actually done in my file. Also, if you still have access to your UI Online account, check if there are any notes or case details from your original conversation where the rep said you wouldn't have to repay. Sometimes they do document these calls in your online account under "Contact History" or something similar. Having that documentation will really strengthen your waiver request. Good luck with this - it's frustrating but definitely worth fighting if you were explicitly told it was EDD's error!