Can California EDD unemployment garnish your wages for an overpayment?

Thank you, this is exactly what I needed to know. I have my appeal confirmation number saved. Do you know if EDD sends any written confirmation that collections are paused, or do I just have to trust that they are?

they definitely should send something but in my experience edd doesn't always communicate these things well lol. definitely keep calling to check

You should receive a Notice of Hearing from CUIAB which itself signals that your appeal is in progress. That document is important to keep. If you see any garnishment attempt while your appeal is active, contact CUIAB directly - that's a violation of the process.

25% is still a lot though. I'm trying to figure out if I should also try to set up a payment plan as like a backup in case my appeal doesn't go my way.

That's actually really smart thinking. If your appeal is denied you have options - you can request a payment plan, apply for a waiver if repayment would cause financial hardship, or appeal further to the CUIAB board of review. Setting up a payment plan proactively sometimes even signals good faith and can help if you need a waiver later.

wait so if you set up a payment plan does that mean you're admitting you owe the money?? wouldn't that hurt your appeal??

I've been trying to call EDD for like three days straight and can't get through. I'll definitely check this out, thank you.

seconding this - claimyr is legit. used it when my overpayment case was being reviewed and the agent I reached was able to actually pull up my file and confirm the status in real time

Does it work for overpayment questions specifically or just regular claim stuff? I've been scared to call about my situation

Oh no, I'm so sorry that happened to you. Did they eventually stop the garnishment? Did you get any of that money back?

Eventually yes, after I filed for a hardship waiver and submitted like 3 months of bank statements and bills. Got most of it back but the process took forever. Just stay on top of your appeal is all I can say.

This is the thing people don't realize - the 30 day appeal window is STRICT. Miss it and your options shrink dramatically. Good on OP for filing right away.

Yes, employment length doesn't matter. When EDD issues a wage garnishment order your employer is legally required to comply and withhold the specified amount from each paycheck. The employer isn't penalized - they're just following the legal order. Most HR departments have seen these before.

wow that's kind of embarrassing though like your employer finding out

HR departments are generally discreet about these things - they deal with wage orders of all kinds. But yes, minimizing the chance of it happening at all (via the appeal or a payment arrangement) is obviously preferable.

That's really helpful advice. My situation is similar - the payroll timing issue is actually documented and my employer is willing to provide a letter explaining it. I'll make sure my appeal spells that out clearly.

Yes get that employer letter ASAP. Written documentation from a third party (your employer) is much stronger evidence than just your own statements. CUIAB appeals officers respond well to concrete documentation.

did you have a lawyer for your hearing or did you go alone?

I went alone. The CUIAB hearings are designed to be accessible without an attorney, but if your overpayment is large or the situation is complex, a legal aid attorney (free) can be really helpful. Check if your county has a legal aid office that handles unemployment appeals.

I had no idea about the tax refund interception. Good to know so I don't count on that money.

Yeah it's a separate mechanism. The wage garnishment and the tax offset are different collection tools EDD has. Both typically should be paused during an active appeal but the tax intercept is easier for them to apply since it happens automatically in the state system.

EDD is supposed to send you a Notice of Intent to Offset/Garnish before taking action. You generally have a right to respond to that notice. If you receive one of those notices and you have an active appeal already filed, respond immediately referencing your appeal case number. Don't ignore any notices from EDD even if you think your appeal covers it.

ok thank you. I've been ignoring some EDD mail because i was scared to open it and now I'm regretting that lol

oh no definitely open ALL edd mail immediately. even if it's stressful. missing deadlines because you didn't read a notice is the worst outcome

Yes - you can submit a Request for Waiver of Overpayment (DE 1446) proactively. You don't have to wait for collections to start. EDD will evaluate whether repayment would cause financial hardship based on your income and expenses. If you qualify they can reduce or eliminate the debt entirely. Doing it early is actually smart.

do you have to have already lost the appeal or can you file for waiver while appeal is still pending

Technically the waiver is a separate track from the appeal. You can pursue both simultaneously - appeal the determination on the merits AND apply for waiver as a backup in case you lose the appeal. EDD handles them through different departments.

This is good advice. Running both tracks at once is smart especially if the overpayment amount is significant.

I tried calling again this morning and got disconnected after waiting 45 minutes. Going to try Claimyr tonight. At this point I just need to hear from a live person that my appeal is actually in the system.

That's exactly the kind of specific confirmation you need and regular phone attempts just won't reliably get you there. Glad you're going to try it.

does claimyr work for the collections department specifically or just general edd questions

EDD can refer unpaid overpayment debts to the California FTB (Franchise Tax Board) for collection, and eventually debts can go to the state's Unclaimed Property collection processes. However, selling debt to private third-party collectors like a regular creditor would isn't really how state unemployment overpayments work in California. Your friend may have been contacted by a state-authorized entity rather than a private debt buyer. Either way, if anyone contacts you about an EDD debt, verify it's actually EDD or FTB before providing any information - unemployment overpayment scams exist.

ok good to know. he was really panicking about it. i'll tell him to verify who's actually contacting him

It is 30 CALENDAR days from the date printed on the notice (not the date you received it). So count from the notice date, include weekends and holidays. If the 30th day falls on a weekend or holiday the deadline extends to the next business day, but don't cut it that close. File as soon as possible.

thank you!! I was counting business days and thought I had more time. filing today

Good call filing immediately. The safest approach is always to appeal as fast as possible. You can always add documentation later but you can't un-miss a deadline.

Yes - if your appeal is successful and you already had wages garnished or made payments, EDD is supposed to refund the amounts collected. It does take time and you typically need to specifically request the refund with documentation of what was collected, but you're entitled to it if the overpayment determination is reversed.

ok that's a relief. the not knowing what would happen to money already taken was stressing me out as much as the garnishment itself

The refund process can take 6-8 weeks or longer in my experience, but it does happen. Keep records of every payment or garnishment taken so you have exact figures to reference when requesting the refund.

I felt the same way when I first got the notice - like maybe just paying would end the stress. But $4,800 is real money I don't have right now and if it was an EDD error I shouldn't have to pay it back. This thread convinced me to fight it properly.

exactly. good luck with your appeal, hopefully we both get good news from CUIAB

Good luck to both of you. Document everything, get your employer letters if applicable, and follow up consistently. CUIAB hearings are much more reasonable than people expect - they genuinely do review the evidence.

DO NOT DO THIS. Ignoring it means you automatically lose your right to appeal after 30 days. Then EDD can pursue full collection including wage garnishment, tax refund interception, and referral to FTB. Your debt can also accrue penalties and interest. There is no scenario where ignoring an EDD overpayment notice works out well.

ok ok i was just asking hypothetically lol. definitely not going to ignore it

I literally almost did this because opening the mail was too stressful. Don't wait. Even if you don't know what to do yet, at minimum file a basic appeal to preserve your rights and figure out the details after.

That's actually a separate issue from disputing the underlying overpayment. You'd want to request a review of the garnishment calculation specifically. The 25% limit is based on disposable earnings (gross minus legally required deductions) not gross pay, so if they're calculating off your gross paycheck the number could definitely be off. You need to speak with an EDD agent who handles collections specifically.

yeah i've been trying to call for two weeks. literally cannot get through to anyone

This is exactly when Claimyr is worth trying - claimyr.com can get you through to a live EDD agent without the hours of redialing. I used it for my overpayment questions and the agent was actually knowledgeable about collections specifically. There's also a walkthrough video at https://youtu.be/JmuwXR7HA10 so you can see how it works before trying it.

I'll check it out. At this point two weeks of failed calls is enough - I need a different approach

Not permanently, but there are real consequences. An unresolved overpayment CAN result in a disqualification from receiving future UI benefits until the overpayment is resolved. EDD will generally hold future benefits and apply them toward an existing overpayment balance. However, if your overpayment was due to an employer or EDD error (not fraud), the impact on future eligibility is much more limited than if it was due to claimant fraud.

okay so as long as I'm dealing with it (paying it back or actively appealing) it shouldn't completely block me from future benefits?

Correct - actively engaging with the process, either through an appeal, payment plan, or waiver request, is much better than ignoring it. An unresolved overpayment where you've made no contact with EDD is what tends to create the most problems for future claims.

Also worth noting - if EDD owes YOU a refund (like after a successful appeal) and you file again in the future, that should be accounted for in your account history. The system theoretically tracks both directions.

You're past the standard appeal window which is a real problem, but you're not completely without options. First - apply for a hardship waiver (DE 1446). You can still do this even without an active appeal. Second - EDD will work with you on payment plans so the debt doesn't go to FTB. Third - if you believe there was a genuine error, you can try contacting CUIAB to explain why you missed the deadline (things like not receiving the notice, medical emergency, etc.) - late appeals are sometimes accepted for good cause. Please stop sitting on this and take action this week.

I feel so dumb for ignoring it. the notice was for $2,200 which I absolutely do not have. I'm going to look into the hardship waiver immediately

Don't feel dumb - the notices are confusing and scary and a lot of people freeze. The important thing is you found out about your options now. File that waiver and call EDD. You have more options than you think at this point.

Thank you. Seriously. I've been carrying this anxiety for months and just finding out there are still steps I can take is such a relief.

So glad you got through and got confirmation! That kind of direct confirmation from an agent is worth so much more than just hoping the system is working correctly. Good luck at your CUIAB hearing.

Great news. Make sure that employer payroll letter is detailed - dates, amounts, and a clear explanation of why the payroll timing created the appearance of a double payment. Hearing officers appreciate specificity. You've got this.

Rooting for you! Please come back and update after your hearing. Stories like yours (where the error was clearly documented) seem to have good outcomes from what I've read.

This is the ideal outcome from doing things right - filing promptly, documenting everything, following up to confirm. Good luck at the hearing. And good point from the agent about submitting directly to CUIAB - don't assume EDD and CUIAB share documents automatically, always send evidence to CUIAB directly.