Will EDD take my SDI benefits to pay off old UI false statement penalty from Covid era?

Yes, unfortunately EDD can and often does cross-apply penalty amounts between different benefit types. Since UI and SDI are both administered by EDD, they have the authority to collect overpayments or penalty assessments from any benefits you're eligible for. It's actually in the fine print when you apply. If they determined you made a false statement during Covid, those penalties can follow you for years until paid off.

they did this to my brother in law!!! they took his disability to pay for some UI overpayment from like 2 yrs ago. he was FURIOUS cause he needed that money for rent. the whole system is rigged against regular people imo

Getting through to EDD about this will be absolutely critical. You need to understand exactly what the false statement penalty is for and the amount before you can address it properly. I spent WEEKS trying to get someone on the phone when I had a similar issue with penalties from a UI claim affecting my SDI. Finally I discovered Claimyr (claimyr.com) which got me connected to an EDD agent in under 25 minutes. They have a video demo that shows how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd - saved me hours of redial hell. The agent I spoke with was able to explain the penalty, review my case, and even helped me submit an appeal since I never received proper notification of the original issue.

wait so u were certifying for UI when u were actually sick?? thats probably where the false statement came from. ur supposed to be able & available for work on UI but if ur doctor said u cant work then u shouldnt be on UI. thats why theres SDI

To directly answer your question: Yes, EDD can take your SDI benefits to pay off a penalty assessment from UI. However, there are several things you should do immediately: 1. Request a detailed statement of your penalty assessment (amount, cause, date) 2. File an appeal if you never received proper notification (use DE 1000M form) 3. Clarify with EDD that your current situation involves transitioning from UI to SDI due to medical issues 4. Make sure your doctor submitted the DE 2501 form correctly 5. If your SDI claim is approved but benefits are being withheld, request a penalty reduction due to financial hardship During your interview this week, explicitly ask about the penalty assessment and request documentation. Document everything, including the name of representatives you speak with.

I HAD THE EXACT SAME THING HAPPEN!!!! EDD is a NIGHTMARE!!! They took ALL my disability money to pay for some stupid mistake from 2 years ago that wasn't even my fault!!! I couldn't pay my rent and almost got EVICTED!!! The system is BROKEN and they DON'T CARE about us!!!

There's actually an important distinction here that might help you. There are two types of deductions EDD can make: 1. Overpayment recovery - which typically allows for installment plans and partial withholding 2. False statement penalties - which can result in full withholding of benefits You mentioned two separate issues: a Covid-era "false statement" problem and your current UI/SDI situation. These are most likely being treated differently in their system. During your upcoming interview, specifically ask: - Is there a penalty assessment or just an overpayment? - What is the total amount owed? - What options are available for payment plans? - How to formally appeal the assessment if you never received notification? Also, if your medical condition is serious, you may qualify for a financial hardship exemption that could reduce or eliminate the penalty. But you need to formally request this.

sdi and ui are different departments they cant take your money from one for the other that doesnt even make sense

After that phone interview this week, you should also request an official Statement of Account from EDD. This will show exactly what they believe you owe and why. If you truly never received notification about this false statement issue, you should also file a Request for Information which is your right under California law. Based on my experience, keep detailed notes of every contact with EDD - date, time, representative name, and what was discussed. This documentation will be crucial if you need to appeal.

One more important point: if you're transitioning from UI to SDI, you should have stopped certifying for UI as soon as your doctor determined you weren't able to work. When you certify for UI, you're declaring you're able and available for work - which contradicts what's needed for SDI eligibility. This might be creating additional confusion in your claim. For your upcoming interview, make sure you clearly explain the timeline: when you filed UI, when your doctor determined you couldn't work, and when you started the SDI application process. This clarity might help prevent further complications.

I'm going through something similar right now and wanted to share what I've learned. EDD absolutely CAN take your SDI benefits to pay off UI penalties - it happened to my cousin last year. The key thing is getting proper documentation of what you actually owe and why. Since you never received notification about the false statement penalty, you have strong grounds for an appeal. I'd recommend calling EDD before your interview this week to get clarity on the penalty amount and ask them to mail you a detailed breakdown. Also, make sure to mention during your interview that you never received any written notice about the false statement issue - they're required by law to provide proper notification before assessing penalties. Don't give up hope - there are options available, but you need to be proactive about requesting the right paperwork and understanding your appeal rights.

I'm so sorry you're going through this - the stress of dealing with EDD while also managing health issues is absolutely overwhelming. From what I've read in these responses, it sounds like you have several potential avenues to explore. The most important thing right now is getting that detailed breakdown of what exactly you owe and why. When you have your interview this week, definitely emphasize that you never received any notification about the false statement penalty - this could be key to getting it dismissed or reduced. Also, don't forget to ask about financial hardship exemptions since you mentioned needing the SDI money for medical expenses. I've heard these can sometimes reduce or eliminate penalties, especially when there are serious health issues involved. Document everything from your interview and keep pushing for answers. The system is frustrating but there are people here who've navigated similar situations successfully. Hang in there!