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Nalani Liu

Can I sue my employer for lying to unemployment about why I was fired?

So I got let go from my warehouse job about six weeks ago and filed for unemployment right away. Everything seemed fine until I got a notice saying my claim was denied because of 'misconduct.' I was completely blindsided because I never did anything wrong - I was laid off due to budget cuts, my supervisor even told me that to my face. Somehow when California EDD contacted my former employer, they told them something totally different. I have no idea what they said exactly but the denial letter says I was terminated for policy violations which is 100% false. I reported my hours and everything correctly and now I'm stuck with zero income while this company lies through their teeth. My question is can I sue my employer for lying to unemployment? I've heard of employers doing this to avoid paying into unemployment insurance but I figured it was rare. I do have text messages from my supervisor saying it was a budget thing and nothing to do with my performance. Not sure if that counts as evidence or anything but I'm holding onto everything I can find. Has anyone else dealt with an employer lying to California EDD and actually won their appeal? What steps did you take?

This happens way more than people realize. Employers absolutely can face consequences for providing false information to California EDD during a separation inquiry. What you need to focus on RIGHT NOW is filing your appeal before the deadline - you only have 30 days from the date on your denial notice to submit an appeal or you lose the right to contest it. Don't let that window close while you're figuring out the lawsuit question.

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I still have about 18 days left on the appeal window so I'm okay there. I just wasn't sure if an appeal was even worth it without a lawyer or something.

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The appeal is absolutely worth it without a lawyer. Most people who win UI appeals do it themselves. Your text messages are actually really solid evidence - screenshot everything and include them with your appeal paperwork.

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That's actually really reassuring to hear. I was thinking I needed to hire someone but couldn't afford it obviously since I have no income right now.

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ok so I went through almost the exact same thing last year. employer told EDD I quit voluntarily which was a complete lie, I was definitely laid off. I filed my appeal and attached every single text, email, anything I had. The appeals judge actually sided with me and my benefits got approved going back to when I first filed. so yes it's winnable!!

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Did they do anything to your employer for lying? Like did EDD investigate them or fine them?

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Honestly I don't know what happened on their end. I just know I got my benefits. I heard EDD can penalize employers but I never found out if they actually did anything in my case.

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California EDD can and does pursue employers for making false statements. Employers can be assessed penalties and even charged with fraud in serious cases. Whether that actually happens in any given case varies though.

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Before anything else - have you been able to actually TALK to someone at California EDD about this? Like an actual human being? Because sometimes getting a live agent on the phone can clarify exactly what your employer said in their response to EDD, which helps you build your appeal argument way more precisely. I know calling EDD is basically a nightmare but I used a service called Claimyr (claimyr.com) that got me connected to an agent without sitting on hold for hours. They have a demo video at https://youtu.be/JmuwXR7HA10 that shows how it works. Finding out exactly what your employer reported would be huge for your appeal prep.

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I've tried calling like four times and keep getting the 'we're experiencing high call volume' message and then it disconnects. I'll check out that Claimyr thing because I really do need to know what was actually reported.

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seconding this, getting the specifics of what your employer claimed makes such a difference when you're writing your appeal statement. you want to directly address whatever they said point by point

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I used Claimyr too when my claim was stuck in adjudication. Got through to someone same day which was wild after weeks of failed calls. Definitely worth it if you need info fast.

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WAIT. you can sue them??? i never knew this was even an option. my old job did something similar to me like 2 years ago and i just gave up and found another job because i thought fighting it was pointless. wish i had known this earlier

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There's a difference between the unemployment appeal process (which is through EDD and is administrative, not a lawsuit) and actually suing in civil court. For the civil suit route you'd need to talk to an employment attorney. Many do free consultations. The statute of limitations varies depending on what legal theory you use.

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oh so it's two separate things. I thought the appeal WAS suing them. That makes more sense now thanks

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I work in HR and I want to give you some straight information here. Employers who provide knowingly false information to California EDD during a separation claim are violating California Unemployment Insurance Code Section 1142. This is not a minor thing - it can result in penalties against the employer and in serious cases referral for criminal fraud charges. Your text messages from your supervisor stating it was a budget-related layoff are genuinely valuable evidence. In your appeal, I'd recommend: 1) A clear timeline of events leading to your termination, 2) Your text messages printed and attached, 3) Any documentation of your employment record showing no performance issues, 4) A written statement directly refuting the misconduct claim. The administrative law judge at your hearing will weigh both sides' evidence.

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This is incredibly helpful thank you. I do have a pretty clean record - no write-ups, no formal warnings ever. Is it worth trying to get a coworker to testify or provide a statement?

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Yes, witness statements or a coworker willing to testify at the hearing can be very persuasive. Even a written statement from a coworker who was present during discussions about layoffs could help corroborate your account.

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What HR person said is accurate. Also worth noting - California is an at-will employment state but that doesn't mean employers get to lie about the reason for termination. At-will means they don't NEED a reason, but if they give one to EDD it better be honest.

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Yeah that at-will thing has confused me a lot. People keep saying 'California is at-will so you can't do anything' but that seems like it doesn't apply here if they're actively lying to deny my benefits.

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my cousin had this happen and she won her appeal no problem. the judge could clearly see the employer was full of it. she said the hearing was way less scary than she expected, just you and the employer rep on a phone call with the judge basically

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Wait it's a phone hearing? I was imagining having to go somewhere in person. That actually makes it less intimidating.

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yeah they do them by phone now mostly. you call in at a scheduled time and they go through everything. your cousin said the employer rep barely had anything to back up what they claimed

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Something important that people overlook - keep filing your weekly certifications throughout the appeal process. A lot of people stop because they think the appeal freezes everything, but if you win the appeal you'll only get back-pay for weeks you actually certified. Don't let those weeks go uncertified even though no money is coming in right now.

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Oh wow I actually didn't know this. I've been certifying but I was honestly thinking about stopping since it seemed pointless. Really glad I didn't.

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This is so important and not obvious at all. I've seen people lose thousands in back benefits because they stopped certifying during the appeal. Keep doing it every week no matter what.

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yep did this exact thing when I was appealing. certified every single week and when I won I got every cent back to week one

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Honest question here - is there any chance there was a misunderstanding and maybe your employer didn't intentionally lie? Like could their HR have had wrong information or mixed up files? I'm not defending them but sometimes it's miscommunication rather than deliberate fraud and knowing which it is might affect your approach

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I've thought about this honestly. But the specific thing they told EDD - 'policy violations' - isn't something that could be an accidental mix-up. There's no policy violation on my record anywhere. That feels very deliberate to me.

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Also worth noting that even if it was 'just' an error by their HR department, the impact on OP is the same and the appeal process works the same way regardless of intent. Intent matters more if you're pursuing a civil suit.

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Fair point. I was more wondering from a strategy perspective, like whether to go in guns blazing vs trying to get a correction first. But you're right the appeal process is the main priority regardless

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I feel like employers do this all the time and nothing ever happens to them. The whole unemployment system is set up to make it hard for workers to actually get what they're owed. I've watched friends go through this and even when they win the appeal the employer just lies again next time to someone else. There really should be stricter consequences.

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I hear you and it is genuinely frustrating. California does have more worker protections than most states and EDD does pursue employer fraud but enforcement is inconsistent. The individual appeal is really your most direct lever.

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Yeah I know the appeal is the main thing. Just venting because it's infuriating watching people who did nothing wrong have to fight this hard for benefits they paid into

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One more thing on the practical side - if you haven't already, try to get the actual text of what your employer reported to EDD before you write your appeal statement. When I was dealing with my own claim dispute I found out through an EDD phone call exactly what the employer said, and it let me address their specific claims directly rather than just generally saying they were wrong. That specificity really matters to the judge. Claimyr at claimyr.com is still the only way I've found to reliably get a live EDD agent - the regular phone lines are just brutal. The video at https://youtu.be/JmuwXR7HA10 explains the process if you're curious.

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I'm going to try this today actually. Knowing exactly what they reported would completely change how I write my appeal statement. Thank you.

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Smart move. 'They're lying' is much weaker than 'They claimed X and here is why X is false with documented evidence.' The second approach wins appeals.

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can you even sue for this tho like what would the lawsuit be for exactly? defamation? I'm genuinely curious about the legal side of this

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The main legal theories people use in civil suits against employers for this are defamation (false statements of fact that harm your reputation), intentional interference with economic advantage, or sometimes fraud. The defamation route is tricky because statements in unemployment proceedings may have qualified privilege protections. An employment attorney would need to assess the specific facts. Most people focus on the administrative appeal first because it's faster and free.

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the qualified privilege thing is interesting, didn't know that applied here

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Right, the administrative appeal route through EDD is really the more practical first step for most people. The civil lawsuit is an option but it's slower, more expensive, and less certain than the appeal process.

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What was the misconduct they specifically accused you of? Some accusations are easier to disprove than others and it might affect how you structure your defense

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The denial letter just says 'terminated for policy violations' without being more specific. Which is actually part of why I want to talk to an EDD agent - to find out if there's more detail than what's in my letter.

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Yeah that vague language is annoying. Definitely push to find out the specifics before your hearing because you want to know exactly what you're refuting.

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The Notice of Determination should have some language but the employer's actual response is in the case file. You can request your case file documents before the hearing - that's another way to find out what was reported besides calling EDD.

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Something I want to add - document EVERYTHING going forward too. Any contact with your former employer, any messages, anything. If this does go to a hearing or beyond, having a complete paper trail matters. Also if you haven't already, write down everything you remember about conversations with your supervisor about the budget layoff while it's still fresh. Dates, what was said, who was present.

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Good call. I've been doing this but not super systematically. Going to sit down tonight and write out a full timeline with as much detail as I can remember.

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yes do this immediately. Memory fades fast and dates especially. even small details like 'my supervisor said this in the break room with two other people present' can matter

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wait I'm confused - does filing an appeal mean you're suing EDD or suing your employer? like who are you actually fighting here

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Great question. The appeal is against EDD's decision - you're asking an administrative law judge to review whether EDD correctly applied the law to your situation. Your employer participates as a party because they have a stake in the outcome, but you're not technically suing them in the appeal. Suing the employer in civil court would be separate.

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oh ok so the appeal is more like asking edd to reconsider and the employer gets to respond? that makes more sense

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Exactly. At the hearing the judge hears from you and from the employer (or their representative) and makes a decision. It's adversarial but through an administrative process, not a courtroom lawsuit.

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I was in a somewhat similar boat six months ago. Employer claimed I was fired for attendance issues which was hilarious because I had literally perfect attendance for two years. I won my appeal and my benefits were reinstated plus I got all the back pay. The whole process took about 8 weeks from filing the appeal to getting my decision. Just wanted to give you a realistic timeline expectation.

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8 weeks is actually helpful to know. I was hoping it would be faster but good to set realistic expectations.

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Yeah it's not fast. The upside is once you win you get everything they owe you all at once which in my case was a significant chunk of money.

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Also depends on how backed up your local board of appeals office is. Can vary by region sometimes.

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i tried to fight something similar once and gave up halfway because the process was just too confusing and I couldn't get anyone to explain what I was supposed to do. not trying to be negative just saying make sure you actually understand each step before you proceed because I made a mess of mine

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This is actually a real concern. California EDD's appeals process has specific procedures and deadlines. The California Unemployment Insurance Appeals Board website has guides that explain the process step by step. Also legal aid organizations often help with UI appeals for free if you need someone to walk you through it.

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I wish I had known about legal aid. I just assumed it would cost money to get help and couldn't afford it at the time.

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Worth adding - your local county bar association often has free employment law referral services and many employment attorneys do free initial consultations specifically for unemployment matters. Don't assume you have to navigate this alone.

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To answer your direct question about suing - yes it is legally possible to pursue a civil claim against an employer for making false statements that cost you unemployment benefits. In California there have been cases where employees successfully sued under various theories. That said the administrative appeal is your fastest and most direct remedy and costs nothing. I'd strongly recommend exhausting that avenue first before deciding whether a civil suit makes sense. If you win the appeal it resolves your immediate problem (getting your benefits) and may or may not inform whether a civil suit makes sense afterwards.

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This is probably the clearest answer to my original question I've gotten. Thank you. The appeal is definitely my priority right now and then I can reassess after.

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Good luck. The fact that you have written documentation from your supervisor about the nature of your termination puts you in a genuinely strong position for the appeal. Most people are fighting from memory alone.

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Agreed on the strong position. Text messages from supervisors acknowledging layoffs are like gold in these hearings. Employers rarely have a good answer for that kind of direct documentation.

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following this thread because I might have a similar situation coming up with my current job. bookmarking so I can reference all this advice if I need it

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Hope you don't need it but glad it might be helpful! I'll try to come back and update once I get through the appeal process.

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One last thing - if you end up needing to call California EDD multiple times through this process (and you probably will, there are multiple stages), Claimyr at claimyr.com is genuinely worth bookmarking. I know it was mentioned earlier but I want to second it because the EDD phone situation is just brutal and having a reliable way to get through without losing entire mornings to hold music is valuable when you have appeal prep work to do. The demo at https://youtu.be/JmuwXR7HA10 is short and shows exactly what you're working with.

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Saving this for sure. I've already wasted probably 6+ hours of failed calling attempts and I have a feeling I'll need to reach them several more times before this is over.

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the amount of time people waste just trying to get through to EDD is honestly insane. anything that helps with that is worth knowing about

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