How will Workers' Comp settlement affect my ongoing EDD UI benefits? Section 1255.5 question
I've been collecting unemployment benefits for about 3 months while recovering from a work injury. Yesterday I got a call from my workers' comp attorney saying they've reached a settlement and I'll be receiving a lump sum payment in 4-6 weeks. During my entire claim period, my doctor said I could still work with restrictions, so I've been job searching as required but haven't found suitable work yet. My question is: What happens to my UI benefits once I receive this workers' comp settlement? Do I need to stop certifying immediately? Will I have to pay back any UI? I looked at the EDD website and found Section 1255.5 mentioned regarding workers' comp and UI benefits, but I don't understand what it means. Can someone explain this in plain English? Will my workers' comp settlement completely disqualify me from UI going forward?
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Faith Kingston
I went through something similar last year. Section 1255.5 basically means you can't double-dip - you can't receive both workers' comp AND unemployment for the same time period. If your workers' comp settlement covers periods when you already received UI, you'll likely need to repay those UI benefits. Once you get the settlement, you should report it on your next certification. Be honest about the amount and dates it covers. EDD will determine if there's any overlap and if you need to pay anything back.
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Lincoln Ramiro
•Thanks for explaining. So if my settlement is specifically for 'permanent disability' rather than lost wages for specific dates, would that still affect my UI? The attorney didn't explain this part clearly.
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Emma Johnson
wait doesnt it depend on what the settlement is for?? if its for medical expenses thats different than if its for lost wages right? my cousin got wc settlement for medical stuff and kept getting his ui no problem
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Faith Kingston
•Yes, that's correct. The type of settlement matters. If it's specifically designated for medical expenses or permanent disability (not tied to specific dates), it might not affect UI. But if any portion covers temporary disability/lost wages for the same period you received UI, that's where you might have an issue.
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Liam Brown
Congrats on your settlement! When I got mine it took nearly 8 months to come through, not the 4-6 weeks they promised lol
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Lincoln Ramiro
•Oh no, really? That's concerning. I was counting on that timeline since my UI benefits will max out in about 3 months. Guess I need to plan for potential delays too.
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Olivia Garcia
The EDD system is TOTALLY BROKEN when it comes to these situations!!! I had workers' comp settlement last year and EDD put my claim on hold for THREE MONTHS while they "investigated" even though my settlement was clearly for permanent disability! They made me submit all kinds of documentation and then still took forever. And good luck talking to anyone on the phone about it - IMPOSSIBLE to get through!
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Noah Lee
•Have you tried using Claimyr to reach an EDD representative? I was in a similar situation with questions about my disability benefits and couldn't get through for weeks. Claimyr got me connected to an actual human at EDD in about 20 minutes. You can see how it works in their video demo: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd. Their website is claimyr.com - it was honestly a lifesaver when I needed clarification on my benefits situation.
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Ava Hernandez
Section 1255.5 of the California Unemployment Insurance Code specifically addresses the coordination of workers' compensation and unemployment benefits. The key points are: 1. You cannot receive UI benefits for any period covered by workers' compensation temporary disability benefits 2. If your settlement includes compensation for specific time periods where you already received UI, you will need to repay those UI benefits 3. If your settlement is for permanent disability or medical expenses only, it typically won't affect your UI eligibility going forward 4. You must report the settlement on your certification when you receive it You should contact EDD directly to discuss your specific situation before the settlement arrives. Be prepared to provide documentation showing what the settlement covers.
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Lincoln Ramiro
•Thank you for this detailed explanation! This makes it much clearer. I'll definitely contact EDD before the settlement arrives and make sure I have all the documentation ready.
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Isabella Martin
My husbands WC case took 2 YEARS to settle!! and when he finally got it they took back some UI he got in the beginning. It was a whole mess with the dates. Make sure u keep REALLY good records of everything!!
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Lincoln Ramiro
Update: I spoke with my workers' comp attorney again and got more details. The settlement is primarily for permanent disability and future medical costs, not for lost wages during any specific time period. She said I should be fine continuing to certify for UI as long as I'm able to work and looking for work, but I need to report the settlement when I receive it. I'm going to try contacting EDD directly to confirm this information. Thanks everyone for your help!
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Faith Kingston
•That's good news! Permanent disability settlements usually don't affect ongoing UI eligibility since they're compensating for different things. Definitely document that conversation with your attorney and keep all paperwork showing what the settlement covers. Good luck!
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