EDD making payments before eligibility determination - should I be worried?
I've got a weird situation with my unemployment claim that's making me nervous. I filed for benefits after being laid off from my marketing job last month. When I checked my UI Online account yesterday, I saw that EDD deposited two weeks of payments to my Money Network card (about $950 total) even though my account message center has a notice saying 'We have not yet made a final determination on your eligibility.' I'm worried about spending this money only to find out later I wasn't eligible and have to pay it all back. Has anyone experienced this? Would it be better to call EDD and ask them to hold payments until they've actually determined I'm eligible? My former employer contested my claim (they're calling it a performance-based termination though it wasn't), so I'm expecting an eligibility interview soon. The last thing I need is a massive overpayment notice down the road if they decide against me.
20 comments
Dylan Wright
This is actually standard practice for EDD - they'll often pay benefits while eligibility is still being determined. It's part of their 'pay now, verify later' approach. If you end up being found ineligible after your interview, THEN they'll hit you with an overpayment notice. My advice? Set the money aside in a separate account if you can and don't spend it until after your eligibility interview. That way if worst comes to worst, you can just pay it back without stress.
0 coins
Fatima Al-Mazrouei
•Oh wow, I had no idea they did this! That seems so backward to me. I'll definitely keep it separate then. Do you know how long it typically takes for them to schedule these eligibility interviews? It's been almost 3 weeks since I filed.
0 coins
NebulaKnight
Yep thats how edd works!! they paid me for like 6 weeks b4 my interview then decided i was ineligible lol had to pay back almost $4k... wish i had saved it but i needed rent $$$
0 coins
Fatima Al-Mazrouei
•Oh no, that's exactly what I'm afraid of! Did they at least let you set up a payment plan to pay it back?
0 coins
Sofia Ramirez
Whatever you do, DO NOT call and ask them to stop payments!! The system is designed to provide benefits while they investigate. If you call and specifically request they stop payments, you might accidentally trigger a voluntary stop on your claim that could be difficult to restart if you ARE found eligible. My brother-in-law made this mistake in 2023 thinking he was being responsible, and it created a massive headache that took months to resolve. Just set aside the money if you can, and wait for the interview. If your employer contested your claim, you WILL definitely have an eligibility interview, but it could take 4-8 weeks to be scheduled these days.
0 coins
Fatima Al-Mazrouei
•Thank you for the warning! I definitely won't call to stop payments now. 4-8 weeks is such a long time to wait... guess I'll just have to be patient and keep that money untouched.
0 coins
Dmitry Popov
I'm going through something similar right now! Had my eligibility interview last week after receiving 5 weeks of payments while waiting. The interview wasn't as scary as I thought - just make sure you have documentation ready about your separation. Bring any emails, performance reviews, or termination letters that support your side. One tip: if your employer claimed it was performance-based, be ready to explain if you ever received formal warnings, if you were on a performance improvement plan, or if the issues were ever documented. EDD typically sides with the employee unless the employer can prove misconduct, which is a pretty high bar. Simple poor performance usually isn't enough to disqualify you.
0 coins
Fatima Al-Mazrouei
•This is really helpful, thank you! I do have emails showing that they never put me on any kind of improvement plan, and my last performance review was actually positive. I'll gather all that documentation so I'm ready when they finally call.
0 coins
Ava Rodriguez
EDD is such a broken system! They do this all the time - pay people then demand it back when they decide you weren't eligible. CLASSIC BUREAUCRACY AT ITS FINEST! Meanwhile people who actually need the money are left waiting for weeks. Their phone lines are still a joke in 2025 too.
0 coins
Fatima Al-Mazrouei
•Yeah, the whole system seems so inefficient. I've been trying to call them with questions about this exact issue but haven't been able to get through at all.
0 coins
Miguel Ortiz
Have you tried using Claimyr to reach EDD? After failing to get through for two weeks straight, I used their service and got connected to an EDD rep in about 20 minutes. They basically call EDD for you and transfer you when they get through. Saved me huge headaches when I had a similar situation with contested eligibility. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km
0 coins
Fatima Al-Mazrouei
•I haven't heard of this before, but I'm going to check it out right now. At this point I'd try anything to get some clarity on my situation. Thanks for sharing!
0 coins
NebulaKnight
•I used this 2 it rly works but stil took like 45min 4 me which is way better than spendin all day calling!!
0 coins
Zainab Khalil
From my experience working with unemployment cases, here's what's happening: EDD automatically begins paying claims that meet basic eligibility requirements upon initial filing, but when an employer contests a claim, they flag it for further review while continuing payments. This process actually benefits most claimants because the vast majority of contested claims are still found eligible after investigation. However, you're right to be cautious. About 30-35% of contested claims do result in disqualification, especially in cases where the employer has solid documentation of policy violations or misconduct. When you have your eligibility interview, be extremely clear about the circumstances of your separation. Avoid saying anything that could be interpreted as you violating company policies or admitting to performance issues that you were warned about previously.
0 coins
Fatima Al-Mazrouei
•That 30-35% statistic is a bit scary, but I appreciate the transparency. My employer did definitely exaggerate the situation, so I'll be very clear about that during the interview and stick to the documented facts.
0 coins
Sofia Ramirez
Quick update on wait times - I just had my eligibility interview yesterday after waiting exactly 6 weeks from filing. They told me they're experiencing higher than normal volumes right now, so interviews are taking longer to schedule than usual. Just wanted to give you a realistic timeline based on current experience.
0 coins
Fatima Al-Mazrouei
•Thanks for the update. 6 weeks is a long time to wait! Did they give you their decision right away during the interview or do you have to wait even longer for that?
0 coins
Sofia Ramirez
•They didn't give me an immediate decision. The interviewer said I should receive a determination notice in 7-10 days. So more waiting! But at least the interview itself was only about 15 minutes long.
0 coins
Dylan Wright
To actually answer your original question directly - no, there's no way to have them hold payments until a final eligibility determination. The system isn't designed that way. Your options are basically: 1. Continue certifying and receiving payments, but set aside the money until after your interview 2. Stop certifying entirely (not recommended as it could affect your claim) 3. Withdraw your claim completely (definitely not recommended unless you're certain you're ineligible) The first option is what most people do. Just be prepared for the possibility of repayment if found ineligible.
0 coins
Fatima Al-Mazrouei
•Thank you for laying out the options so clearly. I'll definitely go with option 1 and keep setting aside the payments until I get a final determination.
0 coins