Do penalty weeks still count with excessive earnings from part-time work? EDD confusion

Yes, weeks with excessive earnings DO count toward serving your penalty weeks! This is actually one of the few benefits of penalty weeks versus disqualification. As long as you continue to certify properly each week (reporting your work and earnings accurately), those weeks will count toward your penalty period even though you wouldn't receive payment anyway due to excessive earnings. Make sure you keep certifying for every week and correctly report all earnings. The system will automatically track which penalty weeks you've served. Once you've completed all 6 weeks, any future weeks where your earnings drop below your weekly benefit amount would make you eligible for benefits again (assuming you meet all other eligibility requirements).

im pretty sure u have to be completely unemployed for penalty weeks... thats what happened to my cousin he had like 8 weeks penalty and was working parttime and they didnt count those weeks

I had a slightly different situation last year but it might help. I was serving 4 penalty weeks when I got a temp job. The EDD rep told me that ANY week I certified for (even with earnings) would count toward my penalty weeks as long as I was still eligible for at least $1 in benefits before the excessive earnings were applied. So basically yes the weeks count UNLESS you're completely ineligible for some other reason like being out of the country, not available for work, etc.

The whole penalty week system is such BS!!! Just another way EDD punishes people who make honest mistakes. I had penalty weeks during COVID and literally COULD NOT get a clear answer from anyone. The website says one thing, the handbook says another, and the reps (if you can even reach one) give different answers every time you call. It's like they WANT to confuse people so they can hit us with more penalties.

Let me clarify something important here that others haven't mentioned yet. Penalty weeks are different from DISQUALIFICATION weeks. With penalty weeks, you must continue to meet ALL eligibility requirements during the penalty period - this includes being able and available for work, actively looking for work, etc. BUT the key difference is that weeks with excessive earnings DO count toward serving your penalty. I know this because I went through exactly this situation in February 2025. I had 5 penalty weeks to serve, got a part-time job, and continued to certify. Even though I earned too much to receive benefits, all those weeks counted toward my penalty. After serving all 5 weeks, I was eligible again when my hours got cut. To be 100% certain though, keep a detailed record of all your weekly certifications and excessive earnings reports. The online portal should show your remaining penalty weeks counting down.

wait what exactly is a penalty week? is that the same thing as a waiting week? im about to file a new claim and now im worried

UPDATE: I finally got through to EDD this morning! The specialist confirmed that YES, my weeks with excessive earnings ARE counting toward my penalty weeks. She explained that as long as I'm certifying and meeting all other eligibility requirements (available for work, searching for work, etc.), the weeks will count regardless of whether I would have been paid or not. She did emphasize that I need to keep certifying every two weeks and accurately report all earnings, even during the penalty period. For anyone else dealing with penalty weeks - they DO run concurrently with excessive earnings! One less thing to stress about.

This is such valuable information! I'm dealing with a similar situation right now - 4 penalty weeks and just started a part-time gig that puts me over my weekly benefit amount. I was panicking thinking I'd never get through my penalty period, but reading through all these responses (especially your final update with EDD confirmation) gives me so much peace of mind. For anyone else reading this thread in the future: the key takeaways seem to be 1) Keep certifying every two weeks no matter what, 2) Report ALL earnings accurately, 3) Make sure you're still meeting other eligibility requirements (available for work, job searching, etc.), and 4) Weeks with excessive earnings DO count toward penalty weeks as long as you're otherwise eligible. Thanks for sharing your experience and coming back with the official confirmation from EDD!

I'm so glad you posted this question and got it resolved! I'm actually dealing with something similar right now - I have 3 penalty weeks left to serve and just picked up some freelance work that varies week to week. Some weeks I'm under my benefit amount, others I'm way over. Reading through this whole thread (especially your update with the EDD confirmation) has been incredibly reassuring. I was worried that the weeks where I earn too much wouldn't count and I'd be stuck serving penalty weeks forever. Now I know I just need to keep certifying accurately and all weeks will count as long as I'm meeting the other requirements. Quick question for anyone who might know - do you still have to do the work search requirement during penalty weeks? I've been doing it just to be safe, but wasn't sure if it was actually required since you're not getting paid anyway. Thanks again for sharing your experience and coming back with the official answer!