EDD caught a mistake in my earnings - now facing disqualification after 4 months of benefits
I'm completely freaking out right now. Been receiving UI benefits since December after a layoff from manufacturing. Everything was fine until yesterday when I got this notice from EDD saying they found a 'discrepancy' in my reported earnings. The letter states my former employer reported I earned $7,830 more than what I claimed on my application. They're saying I 'willfully misrepresented information' and now my benefits are disqualified AND they want me to pay back all $12,500 I've received!! I swear I reported everything correctly - my W2 matches what I put on my application. The letter mentions something about overtime hours from October not being included, but those were definitely on my W2 which is what I used for the application. There's also a notice about 'false statement penalty weeks' that I don't understand at all. Has anyone dealt with this kind of situation? Do I need a lawyer? I have 30 days to appeal but don't even know where to start.
18 comments
NebulaNova
First, take a deep breath. This happens more often than you might think. You need to file an appeal ASAP - don't wait the full 30 days. The appeal form should have come with your disqualification notice. When you appeal, include copies of your W2, paystubs showing the overtime in question, and a clear written explanation of why you believe you reported correctly. The 'false statement penalty weeks' means that if they uphold the decision, you'd be disqualified from future benefits for a number of weeks EVEN IF you qualify for a new claim. During your appeal, request an eligibility interview to explain your side directly to an EDD representative.
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Yara Sayegh
•Thank you! The appeal form did come with the notice. Should I continue certifying for weeks while this is going on? And what are my chances of winning the appeal if I can prove everything with my W2? I'm so scared about having to pay back $12,500 I don't have.
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Keisha Williams
YES keep certifying even during the appeal process! If you stop certifying and then win your appeal, you won't get those weeks paid retroactively. I went through something similar but it was about severance pay my employer reported incorrectly. Make sure to gather ALL documentation - not just your W2, but every paystub from the period in question, especially ones showing the overtime they're talking about. Also write down a detailed timeline of your employment including when you worked overtime. The more documentation you have, the better your chances.
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Paolo Conti
•this happens ALL THE TIME trust me. employers make mistakes on reporting. my cousin had the exact same thing and he won his appeal. took like 10 weeks tho so be ready to wait
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Amina Diallo
THE EDD IS SUCH A MESS RIGHT NOW!!! I've been dealing with them for months and they keep making these kinds of errors. They accused me of unreported income too but it turned out THEY mixed up my records with someone else with a similar name!!! It's ridiculous how they just automatically assume you're committing fraud instead of checking their own systems. DEFINITELY APPEAL and demand to speak to a supervisor during your interview. Don't let them intimidate you!!!
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Oliver Schulz
•This is exactly why I record every phone call with EDD (California is a two-party consent state but the automated system already says calls may be recorded, so that covers you). I've caught them contradicting themselves multiple times and was able to use my recordings during my appeal hearing. Saved me from having to repay $8000.
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Natasha Kuznetsova
My sister had almost the same issue last year! Her employer reported her commission earnings differently than how she reported them. What helped her was contacting her HR department and having them write a letter explaining the discrepancy was due to how commissions were paid out vs earned. Maybe check if there's some accounting explanation for the overtime difference? Sometimes it's just about when money was actually paid vs when it was earned, especially with overtime processing.
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Yara Sayegh
•That's a really good point. The overtime in question was worked in October but wasn't actually paid until November's paycheck. Maybe that's where the confusion is happening. I'll definitely reach out to my old HR department tomorrow.
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AstroAdventurer
im going thru the same thing rn its a nightmare!! been trying to call edd for 2 weeks straight and cant get thru. every morning i start calling at 8am and get the "we're experiencing high call volume" message over and over. how are we supposed to fix these problems if we cant even talk to someone??!! the whole system is designed to make us give up i swear
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Javier Mendoza
•After struggling with the same issue, I found a service called Claimyr that got me through to an EDD rep in about 20 minutes instead of spending days redialing. They place calls on your behalf and connect you when they reach a rep. Saved me hours of frustration when dealing with my own misreported earnings issue. Check out their video demo at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their site claimyr.com - seriously worth it for situations like this where you NEED to talk to someone quickly.
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Yara Sayegh
Update: I called my former employer's HR department and they confirmed the overtime discrepancy! Turns out they reported my October overtime earnings to EDD separately from my regular wages, and EDD counted it twice. HR is sending me a letter explaining the accounting error on their end. I also found a way to get through to EDD (thanks for the Claimyr tip) and spoke with a rep who put a note on my account and said to include the HR letter with my appeal. Feeling slightly more hopeful now!
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NebulaNova
•That's excellent news! Make sure the HR letter specifically acknowledges they made a reporting error and clearly states your correct total earnings. When you have your appeal hearing, bring multiple copies of everything. Also, write a clear timeline of events to help the judge follow along. Appeals for these kinds of employer reporting errors have a high success rate when properly documented.
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Paolo Conti
last year edd said i owed $6700 for overpayment but it was there mistake. took 4 months but i won my appeal. main thing is DONT MISS ANY DEADLINES!!! send your appeal certified mail so u have proof they got it. worked for me good luck
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Oliver Schulz
•This is important advice about certified mail - USPS provides proof of delivery with tracking. I'd also recommend faxing a copy of the appeal form if possible (keep the fax confirmation) as backup. EDD has been known to claim they never received documents.
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Keisha Williams
Just to clarify about the false statement penalty weeks since you mentioned not understanding that part - if EDD determines you willfully made false statements, they impose penalty weeks where you can't receive benefits in the future. Each penalty week equals one week of benefits you were overpaid. But if you prove this was an employer reporting error, the penalty weeks should be removed along with the overpayment determination. Make sure you specifically address this in your appeal letter and ask for removal of ALL penalties.
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Yara Sayegh
•Thank you for explaining that! The letter mentioned 30 penalty weeks which seemed extreme. I definitely didn't willfully misrepresent anything - I literally just copied the numbers from my W2. Will make sure to specifically request removal of the penalty weeks in my appeal.
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Amina Diallo
MAKE SURE YOU KEEP CERTIFYING!!! Even during the appeal process!! I say this because I made this mistake and lost out on 6 weeks of payments even though I won my appeal. The system is DESIGNED to trip you up! Also, don't be surprised if you get different answers from different EDD reps - write down the name and ID number of EVERY person you talk to. I caught them contradicting each other multiple times!
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Paolo Conti
•yep happened to me too. one rep says one thing another says something else. best advice is get EVERYTHING in writing if u can. email is better than phone
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