< Back to California Paid Family Leave

Will previous unreported earnings affect my upcoming maternity leave benefits with EDD?

I'm about 5 months pregnant and planning ahead for maternity leave, but I'm worried about a mistake I made with EDD last year. During a previous unemployment claim, I did some delivery gig work for about 2 weeks (made around $430 total) and didn't report it. My EDD account eventually showed "False Statement Penalty Week" and I had to serve a waiting period. I ended up closing that claim when I found full-time work again, but I still owe some money back to EDD. Now I'm concerned about how this will impact my upcoming pregnancy disability and PFL baby bonding claims. Will they deny my maternity benefits completely? Will I get hit with the 30% penalty on ALL my maternity payments? Does anyone know if previous penalties carry over to different types of claims? Getting really anxious about this since our budget is already tight for when the baby comes.

Amara Nwosu

•

omg i had almost the exact same thing happen!!!! except mine was doordash not instacart. the penalty weeks SUCK. i think ur SDI pregnancy claim should be separate from ur old UI claim but not 100% sure. following to see what others say

0 coins

Thanks for responding! Did you end up filing for maternity benefits after having penalty weeks? I'm so stressed about this.

0 coins

AstroExplorer

•

The good news is that your Disability Insurance (DI) pregnancy claim and subsequent Paid Family Leave (PFL) baby bonding are separate programs from Unemployment Insurance (UI). The penalty weeks are specific to UI claims. However, if you still owe money to EDD from the overpayment, they may offset your DI/PFL benefits to recover what you owe. Make sure you're proactive about this - contact EDD about your outstanding balance and set up a payment plan before filing your maternity claim. Also, be 100% accurate on your upcoming claims. Since you already have a penalty on record, any future issues could be treated more seriously.

0 coins

Omg thank you for explaining! So I should try to pay off the outstanding balance before filing my pregnancy disability claim? I can probably manage that if it's not too much. Do you know if they'd let me set up a payment plan that works with my maternity leave budget?

0 coins

I don't think what you did is considered serious fraud, more like a reporting mistake. The system flags unreported income and assigns penalty weeks automatically. BUT that doesn't mean you're in the clear. EDD departments do share information, so when you file your DE2501 for pregnancy disability, they'll see you have an outstanding balance. They likely won't deny your claim outright, but as the previous poster mentioned, they might reduce your weekly benefit amount to recover what you owe. My suggestion is to call EDD and explain your situation BEFORE you file. Getting ahead of the problem shows good faith. Have you tried contacting them about this yet?

0 coins

I've been avoiding calling because I've heard the wait times are insane... like hours and hours. And I can't really step away from work that long. But you're right, I should probably try to resolve this before filing my maternity claim. Thanks for the advice!

0 coins

I had something similar happen with my UI claim a while back (didn't report some freelance work). When I called about it, the EDD rep told me it wouldn't affect future disability claims as they're different programs. But yes, they can take some of what you owe from your upcoming benefits. Just a heads up tho - calling EDD is a NIGHTMARE. I tried for 3 days straight and never got through.

0 coins

Dylan Cooper

•

Try using Claimyr to get through to EDD faster! I was in the same situation trying to reach them for days with no luck. Claimyr connected me to an EDD representative in about 15 minutes when I'd been trying for literally weeks on my own. They have a demo video at https://youtu.be/DOLxZQb92wM?si=6N1iCQ3a8Cdb2Ay5 that shows how it works. Totally worth it for peace of mind, especially when dealing with maternity benefits questions that need answers before you give birth.

0 coins

Sofia Perez

•

Technically what you did IS fraud (not reporting income), but it's considered minor since it was only for 2 weeks. The system flags it as a "false statement" rather than "willful misrepresentation" which is the more serious category. For your maternity leave, here's what you need to know: 1. Pregnancy Disability (SDI) is processed by a different department than UI 2. You need to file form DE2501 through your doctor around 4 weeks before your due date 3. Any outstanding balance may be partially withheld from your benefits 4. Your weekly benefit amount will be based on your highest quarter of earnings in the base period Don't stress too much! They don't typically deny claims entirely for small past issues. Just be 100% accurate going forward.

0 coins

This isn't entirely correct. While SDI and UI are separate programs within EDD, they DO share an enforcement database. If there's an active fraud investigation, it can absolutely affect future claims of any type. However, it sounds like OP already received their determination (penalty weeks) rather than being under active investigation, which is good news for their upcoming maternity benefits.

0 coins

Look I'm just gonna be real with you - EDD's internal systems are a MESS. Half the time the different departments don't even communicate properly. I've had plenty of issues with them over the years. My sister had a similar situation and they never even connected her old UI penalty with her pregnancy claim. But why risk it? Pay off what you owe if you can, and be super transparent going forward. The fact that you closed your previous claim when you returned to work actually works in your favor - shows you weren't trying to double-dip long term.

0 coins

Thank you! That's actually encouraging to hear. I wasn't trying to cheat the system - it was a stupid mistake during a really stressful time. I think I'll try to pay off what I owe and then start fresh with my pregnancy claim. Appreciate everyone's advice!

0 coins

Amara Nwosu

•

random question but how far along are you? i'm 6 months and just starting to figure out all this paperwork stuff too! the whole process is SO confusing... i'm filling out my DE2501 next week! 🤰

0 coins

I'm 22 weeks! So just about 5.5 months. And yeah, the paperwork is overwhelming, especially with all the different forms and timelines. Are you planning to take the full 4 weeks before your due date for PDL?

0 coins

Amara Nwosu

•

yes!!! taking the full 4 weeks before! my doc said to start disability at 36 weeks but i'm so tired already lol. hope ur EDD stuff gets sorted out! pregnancy is stressful enough without money worries 😫

0 coins

TaxRefund AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
7,273 users helped today