EDD penalty weeks ending but still have overpayment - will they deduct from future payments?

Once your penalty weeks are done, EDD will start reducing your weekly payments by 25% to recover the overpayment. So if your weekly benefit amount is $450, you'll receive $337.50 each week with $112.50 going toward your overpayment balance. This continues until the overpayment is fully recovered. The good news is you will start getting payments again, just not the full amount.

they took 50% from me last year!!! not 25%!! depends on if ur overpayment was fraud or non-fraud. if they marked it as fraud they take HALF ur money every week

Just wondering - did u appeal the penalty weeks? I got hit with 7 penalty weeks but was told I could appeal it. wondering if its worth the hassle

You can actually request a different repayment plan by submitting the DE 1447 form (Overpayment Recovery Arrangement). I had success getting my deduction reduced to 10% because I was able to document financial hardship. You'll need to provide proof of income and expenses, but it's worth trying if 25% is going to cause you serious financial strain. Also, make sure you're checking your UI Online account regularly after your penalty period ends to confirm the payments start correctly. If there are any other issues on your claim, you might face additional delays getting payments restarted.

UGH penalty weeks are THE WORST!! I had 11 weeks and it nearly destroyed me financially. The system is DESIGNED to punish people for honest mistakes! When my penalty period ended, they started taking 25% immediately without even TELLING me first. Check your payment history like a hawk because they won't notify you about the deduction - it just happens. And don't expect clear answers if you call - I got different information from THREE different reps. One said 25%, one said 40%, and one couldn't even tell me!

Something no one has mentioned yet - you should check if you qualify for a waiver of the overpayment. If repaying would cause extraordinary hardship, you can submit form DE 1446W to request a waiver. This is different from the repayment arrangement form. I had a $2600 overpayment completely waived last year because I could document severe financial hardship (was facing eviction). Worth looking into if your situation is dire.

wait is the penalty week the same as disqualification?? i got disqualified for 6 weeks but my friend said thats different from penalty weeks? im so confused by all these edd terms

Thanks everyone for all the helpful advice! I'm going to: 1) Look for both the DE 1447 repayment arrangement form and the DE 1446W waiver form, 2) Keep certifying as normal and watch my payment history like a hawk once the penalty period ends, and 3) Prepare for at least a 25% reduction in my weekly benefit amount. This has been super helpful - I feel much more prepared now for what's coming.