EDD penalty weeks for false statement - will it show up on background checks?
I messed up on my certifications and now I'm dealing with the consequences. Just got a 'Notice of Potential Overpayment and False Statement Penalty' from EDD. I accidentally reported my hours wrong for a part-time job I had while collecting unemployment (totally my fault, wasn't trying to cheat the system). I'm planning to repay the overpayment ($2,700) but I have two big concerns: 1. How do they calculate how many penalty weeks I'll get? Is there some formula based on how much I owe, or is it just random? I need to plan my finances and want to know how long I'll be ineligible if I need UI benefits again. 2. I'm job hunting right now and freaking out about whether this shows up on background checks. Will potential employers see that I had a false statement penalty? Will this be reported anywhere that could hurt my chances? This is my first time dealing with anything like this and I'm super stressed about the long-term consequences. Anyone been through this before?
18 comments
Lena Schultz
The penalty weeks are usually determined by how much was overpaid and whether EDD believes the false statement was intentional or not. Generally, it's around 2-5 penalty weeks for each week you received benefits improperly, up to a maximum of 23 weeks. So if you were overpaid for 3 weeks, you might get 6-15 penalty weeks depending on the circumstances. As for background checks - this is good news! The false statement penalty is an administrative action within the EDD system. It's not a criminal charge unless they pursue fraud charges (which is rare and only for major cases). Regular employers won't see this on background checks. It stays within the EDD system and only affects your future unemployment claims.
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Caesar Grant
•Thank you SO much for this information! That really helps me understand what I'm facing. So basically, these penalty weeks only kick in if I need to claim unemployment again in the future, right? And then I'd have to serve those weeks without benefits? Just want to make sure I understand correctly.
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Gemma Andrews
I had something similar happen in 2023!!! Got hit with an $1800 overpayment and freaked out about the penalty weeks. Ended up with 10 penalty weeks but honestly felt kinda random how they decided. The EDD letter didn't explain HOW they calculated it which was super annoying. But I CAN tell you 100% it DOES NOT show up on background checks! I got a new job 3 months after all this happened and they did one of those super thorough background checks. Nothing about EDD showed up at all. This is between you and EDD only.
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Caesar Grant
•That's a huge relief about the background checks! Thanks for sharing your experience. Did you have to serve your penalty weeks yet or are they still 'on the books' for if you need UI again?
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Pedro Sawyer
my brother had this happen 2 him and he says its based on how much u owe and if they think u did it on purpose. he got like 15 weeks penalty for owing like $4000 i think??? but every case diffrent
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Mae Bennett
•yeah its not a set formula from what i understand. my cousin had this happen last year and they gave her 7 penalty weeks for a $1500 overpayment. seems pretty inconsistent
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Beatrice Marshall
I went through this exact situation in 2024. Let me break down what I learned: 1. Penalty Week Calculation: It's not a strict formula. EDD typically assigns 2-7 penalty weeks for each week of improper payment, depending on if they think it was intentional. My $3,200 overpayment resulted in 17 penalty weeks. 2. Background Checks: This is NOT reported to credit bureaus or background check companies. It's purely an administrative penalty within EDD's system. 3. Important: You should appeal if there were legitimate reasons for your reporting errors! You only have 30 days from the notice date. If you're struggling to reach EDD to discuss your case, I'd recommend using Claimyr (claimyr.com). They helped me get through to an EDD specialist who explained my options. Here's a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The specialist I spoke with helped me understand why I received the specific number of penalty weeks and confirmed it wouldn't affect anything beyond future UI claims.
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Caesar Grant
•This is extremely helpful, thank you! I won't be appealing since I know I made the mistake, but it's good to understand how the penalty weeks work. I'll check out that Claimyr service since I've been trying to reach EDD all week with no luck. I have so many questions about repayment options that I can't get answered.
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Melina Haruko
Wait, I'm confused. What exactly are "penalty weeks"? Does that mean weeks where you have to pay extra money on top of the overpayment? Or something else entirely? I'm getting ready to file for unemployment soon and want to make sure I understand everything correctly so I don't end up in the same situation.
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Lena Schultz
•Penalty weeks aren't additional payments. They're weeks where you're ineligible for benefits in the future. So if you have 15 penalty weeks and need to file a new unemployment claim in the future, you'll have to serve those 15 weeks without receiving any benefits even though you'd otherwise qualify. It's basically a waiting period penalty that gets applied to future claims.
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Dallas Villalobos
I work in HR and can confirm that EDD penalties do NOT show up on standard background checks. Employment background checks typically look at criminal history, education verification, employment history, and sometimes credit history for certain positions. Administrative penalties from state agencies like EDD aren't included in these reports. The only exception would be if the false reporting was so severe that EDD pursued criminal fraud charges (which is extremely rare and only happens in cases involving large amounts or clear intent to defraud). In your case with a $2,700 overpayment that you're willing to repay, this is definitely not going to happen. Focus on making the repayment arrangements with EDD and don't stress about your job search - this won't affect that at all.
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Caesar Grant
•Thank you SO much for this insight from an HR perspective! That's exactly what I was worried about. I had visions of explaining this whole embarrassing situation to potential employers. Such a relief to know it stays between me and EDD.
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Reina Salazar
THE EDD SYSTEM IS TOTALLY RIGGED! They purposely make certifications confusing so people make mistakes and then they can hit you with these penalties! I got slammed with 23 weeks (the max) for what they called "willful misrepresentation" even though I just misunderstood the questions. And good luck getting any clear answers from them on how they calculated it! Their whole system is designed to punish people!!!!
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Caesar Grant
•I'm definitely frustrated with how confusing some of the certification questions are, especially around part-time work. I can see how easy it is to make mistakes. Sorry you got hit with the maximum penalty - that really sucks.
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Beatrice Marshall
Just to add one important thing - make sure you set up a repayment plan with EDD as soon as possible. If you don't arrange repayment, they can take more severe actions like garnishing wages or taking your tax refunds. Once you have a plan in place and are making payments, they're usually very reasonable to work with. And regarding the penalty weeks - they only come into play if you file for unemployment again in the future. The weeks don't expire, so whenever you next apply for UI (even if it's years from now), you'd need to serve those penalty weeks first before receiving any benefits.
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Caesar Grant
•That's good advice about setting up the repayment plan right away. I'll definitely do that. And thanks for clarifying about the penalty weeks - so they basically stay on my record indefinitely until I need UI again and have to serve them? That makes sense, just wanted to be sure.
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Mae Bennett
mine was like 5 years ago but i think i got 1 penalty week for each week i got overpaid. ended up with 8 penalty weeks total. and yeah when i applied for benefits again in 2022 i had to serve those weeks first before getting any money. sucked but at least its over with now
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Gemma Andrews
•That's a good point - at least once you serve the penalty weeks, they're done forever! I'm still dreading having to serve mine if I ever need UI again, but I guess it's better to just face the consequences and move forward.
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