Does workers' comp count as income for unemployment in California EDD?

Okay this actually makes a lot of sense. My payments are partial permanent disability payments, not temporary wage replacement. Does that distinction change things significantly for California EDD purposes?

this is the most detailed answer ive seen on this, been lurking trying to figure out the same thing for my situation

Agreed with this breakdown. The able and available requirement is the key thing people miss when they try to collect both at the same time. EDD can and will disqualify you if they determine workers comp was covering the same period.

5 weeks in adjudication just for this issue?? I'm already in adjudication for a separate reason and now I'm scared this is going to add even more time.

same thing happened to my cousin, they reported everything and eventually got approved but it was a long wait. EDD is just slow with anything that involves workers comp

How did you actually get through to an EDD rep? That seems impossible these days. I've been trying to call for two weeks about my own adjudication situation.

I've never heard of this before, is it legit? I really do need to talk to an actual person about my specific situation because the online info is all over the place.

I used Claimyr when my weekly certifications were getting flagged and I couldn't figure out why. Got through to EDD same day and the agent explained exactly what was happening. 100% worth trying especially for something complicated like workers comp overlap.

seems too good to be true tbh, EDD phone lines are notoriously impossible

I thought the same thing but it actually worked. The video at that link shows exactly what the process looks like before you commit to anything.

The actual code section reference is really helpful, thank you. So it sounds like my partial permanent disability payments probably won't disqualify me but I still need to report them and let EDD make the determination?

Correct. And document everything - keep records of what your workers comp payments are classified as, because if adjudication asks you'll want that paperwork ready.

This is the most accurate answer in the thread. The UI code section is exactly right and this is what the EDD rep explained to me as well.

It depends entirely on how your workers comp was classified and whether you were able and available for other suitable work. If you were on full temporary total disability, probably not. But if you were partially disabled and could have worked in some capacity, it's worth looking into your options going forward.

ugh I wish i had known this sooner. probably too late to do anything about it now

yeah the rules around this stuff are so confusing, you'd have to have a lawyer or something to know all the ways different benefits interact

This is actually not accurate for California EDD purposes. Workers comp is treated differently than regular wages under the UI code. It can affect eligibility but it's not simply counted as "income" the same way part-time work wages would be. Always better to get official EDD guidance than HR second-hand info for unemployment specifically.

oh ok fair enough, he might have been talking about taxes or something different

Yeah workers comp tax treatment is also its own thing, totally separate from how EDD treats it for UI purposes. Three different sets of rules basically.

Oh I didn't know there was a notes section! I'll definitely use that when I certify this week and explain that the workers comp is partial permanent disability payments.

Good tip. Transparency with EDD is always better than trying to guess what to omit. They have access to a lot of records and trying to hide income usually causes way bigger problems down the road.

does this notes section show up on the UI online portal or is it somewhere else? I've never noticed it

Lump sum settlements for past injuries while collecting UI for a separate layoff are generally treated differently. The key question EDD asks is whether the settlement is compensating for CURRENT wage loss or for a past permanent impairment. A settlement from a prior injury while you were laid off from a different job for unrelated reasons is much less likely to create a UI conflict, but you still need to report it.

Definitely report the settlement on your weekly certification during the week you receive it, regardless of the amount. Let EDD determine the impact. The consequences of not reporting and getting caught are much worse than potential delays from reporting.

Okay good to know. I've been stressed about this. The settlement is from a 2022 injury and I was laid off earlier this year from a completely different employer so I was hoping they were separate enough that it wouldn't cause issues.

8 weeks is insane. what finally resolved it?

honestly it just eventually cleared on its own with no explanation. i never actually got through to anyone. i checked my UI online one morning and it just showed approved with all my back payments. no letter, no call, nothing. very weird experience

This is literally my fear - that it just sits there with no resolution and I have no idea what's happening. How were you paying bills during those 8 weeks??

This is actually a really good point. If you have documentation from your workers comp case showing the specific classification of your payments (temporary disability vs permanent disability vs settlement), having that ready when you talk to EDD can resolve adjudication questions much faster.

I do have paperwork from my workers comp attorney. I'll pull that out before I call EDD. My attorney labeled them as partial permanent disability payments in the settlement docs.

Your attorney's paperwork is going to be very useful here. Bring that classification language directly to EDD when you speak with them and it should help clarify your specific situation quickly.

I mentioned Claimyr earlier in the thread - claimyr.com - but seriously if you've been trying the regular EDD number for weeks with no luck, this is exactly the situation it's made for. There's a demo video at https://youtu.be/JmuwXR7HA10 if you want to see how it works before trying it. Got me connected to an actual EDD agent when nothing else was working.

I literally just watched the video and I'm going to try this today. At this point I have nothing to lose, I've called probably 40 times in the last 6 weeks.

The regular EDD phone system is genuinely broken, it's not just you. The call volume they get is incomprehensible and the hold system doesn't actually work the way it's supposed to. Any alternative method for getting through is worth trying.

Really glad you got resolution on this! The employer contest explanation makes sense for the adjudication hold - that's a separate process and unfortunately can take several weeks to resolve. Keep certifying every week no matter what during adjudication.

Great update! And yes keep certifying even during adjudication or you won't get backpay for those weeks if you're eventually approved.

So relieved for you! And useful confirmation for everyone else in this thread with the same question about workers comp classification.

thanks for updating us! so many people ask questions here and never come back so its nice to see what actually happened

This is an excellent summary. I'd add: if you have a workers comp attorney, ask them specifically about the UI interaction before you file for unemployment. Many workers comp attorneys know the UI overlap rules and can advise you on how to report correctly from the start.

Saving this comment for later, thank you for summarizing. This is way clearer than anything I found on the official EDD website about this.

Agreed this should be pinned or something. The official EDD pages are so vague about workers comp interaction.

Yes it can. Your UI weekly benefit amount is calculated based on your highest quarter earnings in your base period (the first four of the last five completed calendar quarters). If you had reduced earnings during part of that period due to being on workers comp leave, it could lower your WBA. However, there's an alternate base period option that uses the four most recently completed quarters instead, which might work better for you depending on when the injury occurred.

oh wow i didn't know about the alternate base period option. how do you request that?

California EDD is supposed to automatically calculate both base period options and use whichever one gives you a higher benefit amount. But if you think your claim was calculated incorrectly, you can request a review - it's worth asking an EDD agent to verify which base period was used for your claim calculation.

This is a cautionary tale I really needed to hear. Glad the appeal worked out for you but months of fighting that sounds exhausting.

It really was exhausting. The Appeals Board process itself is not that complicated but waiting for hearing dates while your finances are stressed is rough. If you can resolve things at the initial claim level instead of having to appeal, do everything possible to make that happen.

This is why getting accurate information before you file or certify is so important. And why being able to actually talk to an EDD agent about your specific situation is so valuable - not just relying on general online information for something this nuanced.

The industry itself doesn't change the basic workers comp / UI interaction rules - California EDD applies the same eligibility criteria regardless of whether you were in construction, warehouse work, office jobs, etc. What matters is the classification of the payments and whether you're able and available for work, not the industry you came from.

ok good to know, was worried construction might have different rules since workers comp is so common there

Construction workers do sometimes have union-specific benefit situations that can complicate things but the core EDD rules are the same. A union rep might be worth talking to if you have union coverage.

Good question - workers comp is NOT wages from work performed, so it doesn't go in that section. It typically goes under 'other income' or you may need to explain it in a notes section. When in doubt, the safest approach is to answer the work-wages question accurately (no wages from work if you didn't work) but disclose the workers comp payment proactively either in the other income section or by contacting EDD directly to document it on your claim.

That makes more sense now. I was confused because it felt like I was reporting nothing if I answered no to the work question even though I did receive money that week.

This is a genuinely confusing part of the certification form for anyone with income that isn't traditional wages. You're doing the right thing by trying to understand it before just guessing.

glad it's been helpful! I was in full panic mode when I posted this and I've learned a ton from the responses. Good luck with your situation.

thank you! And congrats on your update getting through to EDD and getting answers. That's the part that seemed most stressful honestly - not even being able to talk to a person about it.

This is really useful to know as a kind of worst case scenario backstop. I'm hoping my situation resolves cleanly but knowing I have appeal options if an overpayment notice shows up is reassuring.

Correct. California EDD overpayment notices distinguish between fraud (where you intentionally misrepresented information) and non-fraud overpayments (where you made an honest mistake or EDD made an error). Non-fraud overpayments have more flexible repayment options including waiver requests in cases of financial hardship. Always appeal within the 30-day window if you believe the overpayment determination is wrong.

Also worth noting - if you get an overpayment notice, stop any auto-repayment from your UI prepaid card if possible until you've had a chance to review whether the amount is actually correct. Mistakes in overpayment calculations do happen.