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EDD labeled me as fraudulent after employer claimed I was terminated - can't repay + possible blacklisting

I lost my job at a tech startup back in November 2024 and started collecting unemployment. Everything was fine for about 6 weeks, then my certifications just stopped processing. When I finally got through to an EDD rep, they told me my former employer had contacted them claiming I was TERMINATED for cause (completely untrue - we had layoffs and I have the layoff letter to prove it). Now EDD has reclassified my claim as fraudulent, wants back $4,250 plus interest, and sent me a notice saying I have a "false statement penalty" of 30%. I've been job hunting for almost 5 months with only 3 interviews, despite having 8+ years experience in my field. I'm starting to suspect my old employer is blacklisting me somehow. I'm completely broke at this point - my savings are gone, credit cards maxed, and I'm two months behind on rent. There's absolutely no way I can pay back this money. What options do I have to fight this? Has anyone successfully appealed a fraud determination? And is there any way to find out if a former employer is badmouthing you to potential employers?

Omar Fawaz

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First and foremost, you need to appeal this determination ASAP! You only have 30 days from the date on the notice to file your appeal. Get that done immediately before worrying about anything else. When you appeal, include a copy of your layoff letter as evidence. After that, you should request all records from EDD about your claim through a formal records request - this will show you exactly what your employer told them. You have a right to see this information. Regarding the blacklisting concern - that's actually illegal in most states including California. If you suspect this is happening, document every job application, follow up with places that seemed interested but suddenly went cold, and consider consulting with an employment attorney for a free consultation.

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Freya Pedersen

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Thank you so much for this advice! I just checked and my determination notice is dated 14 days ago, so I still have time to appeal. Do I need to fill out a specific form or just write a letter explaining my situation? And should I mail it or is there a way to submit it online?

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Chloe Anderson

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omg this happened to my cousin last year!!! his boss was TOTALLY lying about why he got fired and edd believed the boss instead of him. he ended up having to pay everything back cuz he missed the appeal deadline. dont make that mistake!! appeal right now!!

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Diego Vargas

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You need to file form DE 1000M for your appeal - it's the "Appeal Form" for questioning EDD determinations. You can download it from the EDD website or get one at an America's Job Center office. Mail it to the address listed on your determination notice. If you still have your layoff letter, make copies and include one with your appeal. ALSO, request a copy of your complete claim file via a formal written request to EDD - this will show exactly what your employer reported. As for the blacklisting - California law prohibits employers from preventing former employees from obtaining work, but it can be very hard to prove. Document EVERYTHING - dates of interviews, who you spoke with, their responses, etc. While waiting for your appeal, call EDD and ask about a payment plan for the overpayment. They can reduce the repayment to very small amounts if you can prove financial hardship, which clearly applies to your situation.

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Freya Pedersen

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Thank you! I just found the DE 1000M form online and will fill it out today. Do you know how long the appeal process typically takes? I'm worried about interest continuing to accumulate while I wait.

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if ur employer is saying u were terminated for cause but u have proof of being laid off, they r committing fraud NOT U!!! u need to contact labor commissioner office too, not just edd. they can investigate ur employer for retaliation and false statements. btw the whole system is rigged against workers. my neighbor waited 6 MONTHS for her appeal hearing and then had to wait another month for decision. its bs how they make u wait so long when u have no money!!

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StarStrider

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I went through something very similar in 2025. What saved me was getting through to a supervisor at EDD who could actually review my case properly. The regular agents just read whatever notes are in the system and can't really help. After weeks of failing to reach anyone helpful, I finally discovered Claimyr.com - they have a service that gets you through to an EDD representative quickly instead of battling busy signals all day. They have a demo video at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km showing how it works. I was skeptical at first, but it worked and I got connected to someone who could actually review my documentation and fix the issue. For the possible blacklisting - I also worried about this. I ended up changing how I listed that employer on my resume (using parent company name instead of subsidiary) and suddenly started getting more interviews. Might be coincidence, but worth trying.

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Chloe Anderson

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does that claimyr thing really work?? i spent like 4 hours yesterday calling edd and never got thru 😫

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StarStrider

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It worked for me and three other people I know who tried it. The key is you need to call early in the day, even with their service. But instead of making 50+ calls yourself, they handle that part.

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Sean Doyle

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Everybody here is forgetting the most important part - you NEED to file for a waiver of the overpayment! EDD can waive repayment if it would cause extraordinary hardship and you didn't intentionally provide false information. Fill out DE 1446W along with your appeal. Being unemployed for 5 months with no income definitely qualifies as hardship. I had a somewhat similar situation where my employer lied about my separation reason. My appeal took about 8 weeks to be scheduled for a hearing, and then another 2 weeks for the decision. Make sure you're VERY prepared for the hearing - have all documents organized, write out a timeline of events, and be ready to clearly explain your side. The Administrative Law Judge who handles these is usually fair but expects you to be prepared. Oh and make sure EDD has your CURRENT MAILING ADDRESS. I missed my first hearing notice because it went to my old address!

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Freya Pedersen

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Thank you! I didn't know about the waiver form - I'll file that along with my appeal. Do you remember what kinds of questions they asked during your hearing? I'm nervous about facing my former employer.

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Sean Doyle

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The hearing was actually pretty straightforward. They asked about the circumstances of my separation, whether I received any documentation, who told me I was being let go and what exactly they said. They asked my employer for documentation supporting their claim that I was fired for cause. Since my employer couldn't provide any concrete evidence and I had my layoff paperwork, the judge ruled in my favor. Just stick to the facts and stay calm.

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Zara Rashid

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This happens allll the time. Companies try to avoid increases in their unemployment insurance rates by claiming termination instead of layoff. It's super shady but common. Besides appealing (which u absolutely should do ASAP), you should also reach out to Legal Aid in your area. They offer free legal assistance for EDD issues if you qualify financially - and it sounds like you would. Just google "legal aid edd help" plus your county name. As for the blacklisting - try using different references from that company if possible. Maybe a coworker instead of a manager? Or just leave them off your reference list entirely if you can.

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Diego Vargas

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One more important thing: during your appeal process, you should request a formal hearing. At this hearing, your employer will need to provide EVIDENCE that you were terminated for cause. If they cannot provide documentation (written warnings, termination notice specifying cause, etc.), the Administrative Law Judge will likely rule in your favor. Also, if your employer fails to appear at the hearing (which happens frequently), you will almost certainly win your appeal. The burden of proof is on them to show you were terminated for cause, not on you to prove you weren't. During the hearing, stick to facts, not emotions. Present your layoff letter, any positive performance reviews, and timeline of events clearly. Even if the employer shows up, they often aren't prepared with proper documentation.

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Freya Pedersen

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This is really helpful. I just submitted my appeal online and requested a hearing. I do have my layoff letter plus my last two performance reviews which were both positive. I'll make copies of everything to bring to the hearing. Really appreciate all this advice!

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Luca Romano

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I had this EXACT situation in January!!! EDD is such a mess - they believe employers without question most of the time. What eventually worked for me was getting my coworkers who were also laid off to write statements confirming there was a layoff and I was part of it. EDD finally reversed their decision after I submitted these as additional evidence. If you're still in touch with any former colleagues who were also laid off, ask them to write a brief statement that you can submit.

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Freya Pedersen

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That's a great idea! I'm still in touch with 3 other people from my department who were laid off the same day. I'll reach out to them right away. Did you have them sign the statements or was an email sufficient?

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Luca Romano

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I had them write formal statements with their contact info and sign them. One person was out of state so they just signed electronically and emailed it to me. Make sure they specifically mention the layoff date and that it affected multiple employees including you. That really helped my case!

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