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Caesar Grant

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?

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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I'm going through something very similar right now and this thread has been incredibly helpful! I made reporting errors on my weekly certifications too (mixed up gross vs net pay calculations) and just received my overpayment notice yesterday for $1,900. The stress about background checks was eating me alive - I have interviews lined up next week and was terrified this would somehow come up. Reading all these confirmations from people who've been through it AND someone who works in HR is such a huge relief. One question - for those who've set up repayment plans, how flexible is EDD with the payment amounts? I can definitely pay it back but would prefer smaller monthly payments if possible since I'm currently unemployed. Did anyone negotiate their payment schedule or do they pretty much dictate the terms? Thanks to everyone sharing their experiences. It really helps to know you're not alone in dealing with this mess!

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EDD is actually pretty flexible with repayment plans! When I set mine up, they initially wanted $400/month but I explained I was unemployed and could only manage $150/month. They were totally fine with that - they just want to see you're making consistent payments. You can set it up online through your EDD account or call them (good luck getting through though!). The key is to be proactive about setting it up before they start any collection actions. As long as you're making regular payments, they won't pursue wage garnishment or tax refund intercepts. And you're absolutely right to feel relieved about the background checks - your interviews will go fine! This stays completely within the EDD system. Focus on nailing those interviews and don't let this stress you out during the process. One tip: when you do get back to work, you might want to set aside a little extra each month to pay it off faster. The sooner it's done, the sooner you can stop thinking about it entirely!

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This is such valuable information, thank you! I'm definitely going to reach out to EDD today to set up a payment plan. It's reassuring to know they're willing to work with people who are genuinely trying to make things right. I was worried they'd be inflexible about payment amounts, but $150/month sounds much more manageable than $400 while I'm job hunting. Really appreciate everyone in this thread sharing their experiences - it's made this whole stressful situation feel so much more manageable knowing other people have gotten through it successfully!

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Just wanted to jump in here as someone who went through this exact situation about 18 months ago. I accidentally under-reported my part-time earnings for about 6 weeks and ended up with a $2,400 overpayment. The stress was unreal! Here's what happened in my case: I got 12 penalty weeks total (which seemed to be about 2 penalty weeks per week I was overpaid). Like others have said, there doesn't seem to be a clear formula - it really depends on whether they think you were trying to game the system or just made honest mistakes. The HUGE relief for me was learning that this absolutely does NOT show up on background checks. I was in the middle of a job search too and was panicking about having to explain this to potential employers. Got hired 2 months later and the background check showed nothing related to EDD. My advice: Set up that repayment plan ASAP. I did $200/month and EDD was totally fine with it. The key is being proactive - don't wait for them to start collection actions. Once you have a payment plan in place, it's really just a matter of making your monthly payments and moving on with your life. The penalty weeks only matter if you need UI again in the future, and honestly, hopefully by then you'll be in a stable job situation where it won't even be relevant. Don't let this derail your job search - you've got this!

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Thank you for sharing your experience! It's really helpful to hear from someone who went through almost the exact same situation. The 2:1 ratio of penalty weeks to overpaid weeks seems to be pretty consistent from what people are saying here. I'm feeling much more confident about my job interviews now knowing this won't show up anywhere. Your advice about being proactive with the repayment plan is spot on - I'm definitely going to call EDD today to get that set up. It's such a relief to know that once you get through the initial stress and paperwork, it really is just a matter of making monthly payments and moving forward. Thanks for the encouragement!

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I went through this exact same thing about 6 months ago! Got an overpayment notice for $3,100 after accidentally reporting my hours wrong for a few weeks. The anxiety was terrible - I was convinced my career was over. Here's what I learned: The penalty calculation really does seem inconsistent. I ended up with 14 penalty weeks for my overpayment, which worked out to roughly 2-3 penalty weeks per week I was overpaid. EDD told me it depends on whether they classify it as "negligent" vs "willful" misrepresentation, but they don't really explain how they make that determination. The background check thing was my biggest worry too, and I can 100% confirm it does NOT show up. I got a new job 4 months later with a company that does very thorough background screening (financial services) and absolutely nothing came up related to EDD. This is purely an administrative matter within their system. My advice: Call EDD immediately to set up a payment plan. I was able to negotiate $175/month payments and they were totally reasonable about it. The sooner you get that arranged, the less stress you'll have. And honestly, once I accepted that the penalty weeks are just something I'll deal with IF I ever need unemployment again, it became much easier to move past it mentally. You'll get through this! Don't let it affect your job search confidence - employers will never know about it.

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This is so reassuring to read! I'm in almost the exact same boat - got my notice last week and have been losing sleep over how this might affect my job search. The fact that you got hired in financial services (which I imagine has pretty strict background requirements) and nothing showed up gives me so much peace of mind. I'm definitely calling EDD today to set up that payment plan. It sounds like as long as you're proactive and honest about wanting to make it right, they work with you on reasonable payment terms. Thank you for sharing your experience - it really helps to know there's light at the end of the tunnel!

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I went through something very similar last year and can share some insights that might help ease your stress! For penalty weeks, it really seems to vary case by case, but from what I experienced and heard from others, it's typically 2-4 penalty weeks for each week you were overpaid, depending on whether EDD considers it "negligent" or "willful." With your $2,700 overpayment, you're probably looking at somewhere between 8-20 penalty weeks, but that's just a rough estimate based on what others have shared. The good news about background checks - this absolutely will NOT show up! I was terrified about this too because I was job hunting at the same time. I ended up getting a position at a company that does very thorough screening and nothing EDD-related appeared anywhere. This is purely an administrative penalty within their system, not a criminal matter. My biggest piece of advice: Set up a repayment plan with EDD immediately. Don't wait for them to contact you about it. I was able to negotiate monthly payments that worked with my budget ($200/month) and they were completely reasonable about it. The key is being proactive and showing you want to make it right. Try not to let this derail your job search confidence - employers will never know about it, and once you get that repayment plan set up, it's really just a matter of making monthly payments and moving forward. You've got this!

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This is incredibly helpful, thank you! The 8-20 penalty weeks estimate based on your research gives me a much better sense of what I might be facing. It's such a relief to hear from yet another person who went through background screening without any issues - I was really spiraling about that aspect. I'm definitely going to call EDD first thing tomorrow morning to get that repayment plan started. It sounds like being proactive is key, and $200/month seems like a reasonable amount I could manage. Thanks for taking the time to share your experience and for the encouragement - this whole thread has been a lifesaver for my anxiety levels!

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I'm currently dealing with a very similar situation and this entire thread has been incredibly reassuring! I made reporting errors on my certifications (confused about how to report partial week earnings) and just received my overpayment notice for $1,850. The anxiety has been overwhelming, especially about potential employers finding out. Reading all these confirmations that it doesn't show up on background checks - including from someone in HR and people who've actually gone through screening - is such a huge weight off my shoulders. One thing I wanted to add for anyone else reading this: I called EDD this morning using that Claimyr service mentioned earlier and actually got through to a real person within an hour (versus the weeks I've been trying on my own). The representative explained that the penalty weeks are calculated based on several factors including the amount, duration, and whether they believe there was intent to deceive. She confirmed that for accidental reporting errors like ours, it's typically on the lower end of the penalty scale. She also emphasized that setting up a repayment plan immediately is crucial - apparently if you wait too long, they have less flexibility with payment terms. I'm setting mine up for $150/month which she said was totally reasonable given my current situation. Thanks to everyone who shared their experiences here. It really helps to know you're not alone and that people have successfully gotten through this!

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That's fantastic that you were able to get through to EDD using Claimyr! I've been trying to reach them for over a week with no luck, so I'm definitely going to try that service. It's really helpful to hear what the representative told you about the penalty calculation - knowing that accidental errors typically result in lower penalties gives me some hope that mine won't be too severe. And $150/month sounds very manageable for a repayment plan. Thanks for sharing that tip about calling sooner rather than later for better payment flexibility - I had no idea timing could affect the terms they're willing to offer. This whole thread has been such a lifeline during what's been a really stressful time!

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I'm going through something very similar right now and this entire discussion has been incredibly helpful! I just received my overpayment notice yesterday for $2,100 after incorrectly reporting some freelance work earnings during my certification weeks. The stress about background checks has been keeping me up at night since I'm actively interviewing for several positions. Reading all these confirmations from people who've actually been through employment screening - especially the HR professional's input - is such a massive relief. I was imagining having to explain this embarrassing situation to potential employers, but knowing it stays completely within EDD's system is huge. Based on what everyone's shared here, it sounds like I should expect somewhere around 6-15 penalty weeks for my overpayment amount, which honestly isn't as bad as I was fearing. And the fact that these only apply to future UI claims (if needed) makes it much more manageable mentally. I'm definitely calling EDD tomorrow to set up a repayment plan - seems like being proactive is key and most people here were able to negotiate reasonable monthly payments. Thanks to everyone who took the time to share their experiences. It's so reassuring to know that while this situation sucks, it's absolutely survivable and won't derail your career prospects!

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I'm so glad this thread has been helpful for you too! I was in the exact same headspace just a few weeks ago - the anxiety about background checks was absolutely consuming me. It's amazing how much peace of mind you get from hearing from actual people who've been through the process. Your overpayment amount is right in line with what most people here have dealt with, so the 6-15 penalty week estimate sounds about right based on everyone's experiences. And you're absolutely correct that being proactive with the repayment plan seems to be the key - every single person who mentioned it said EDD was reasonable about working out manageable monthly payments as long as you contact them quickly. The freelance work reporting can be so confusing! I think a lot of us have struggled with how to properly report those earnings. At least now we know for the future, right? Good luck with your interviews - knowing this won't show up anywhere should let you focus on just nailing them without that extra stress hanging over you. You've got this!

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I went through this exact situation about a year ago and can share some practical insights that might help ease your stress! For penalty weeks, based on my experience and what I've seen others go through, EDD typically assigns 2-4 penalty weeks for each week you were overpaid. With your $2,700 overpayment, you're probably looking at somewhere between 10-18 penalty weeks, but this really depends on how many weeks the overpayment covered and whether they classify it as "negligent" versus "willful" misrepresentation. Since you're being honest about it being an accident, that usually works in your favor. The background check concern - I can 100% confirm this will NOT show up! I was job hunting during my situation too and was absolutely terrified about this. I ended up getting hired at a company that does extensive background screening and nothing EDD-related appeared anywhere. This stays completely within their administrative system and is not reported to background check companies or credit agencies. My biggest piece of advice: Call EDD immediately to set up a repayment plan. Don't wait for them to reach out to you. I was able to negotiate $175/month payments and they were completely reasonable about working within my budget. The key is being proactive and showing you want to resolve it responsibly. One more thing - the penalty weeks only kick in if you need to file for unemployment again in the future. They don't expire, but honestly, hopefully you'll be in a stable job situation where it won't even matter. Don't let this derail your job search confidence. Employers will never know about it, and once you get that payment plan set up, it's really just a matter of making monthly payments and moving forward. You've got this!

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This is exactly the kind of detailed breakdown I needed to hear! The 10-18 penalty weeks estimate based on your experience gives me a much clearer picture of what I'm facing. It's such a relief to hear from another person who went through employment screening without any issues - I've been losing sleep over imagining worst-case scenarios with potential employers. I'm definitely calling EDD first thing Monday morning to get that repayment plan started. It sounds like $175/month is a reasonable amount that they're willing to work with, and being proactive seems to be the key theme from everyone's experiences here. You're absolutely right about hopefully being in a stable job situation where the penalty weeks won't even matter by the time I might need UI again. It's a good perspective to keep in mind rather than spiraling about hypothetical future scenarios. Thanks for taking the time to share such detailed advice - this whole thread has been incredibly reassuring during what's been a really stressful few weeks. It's amazing how much better I feel knowing that other people have successfully navigated this exact situation!

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I'm dealing with a very similar situation right now and this entire thread has been a lifesaver! Just got my overpayment notice last week for $2,300 after making errors reporting my gig work income during certification. I've been absolutely spiraling about whether this would show up on background checks since I'm in final rounds with a few companies. Reading all these confirmations from people who've actually gone through employment screening - especially hearing from the HR professional - has given me so much relief. I was convinced I'd have to explain this mess to potential employers, but knowing it stays completely within EDD's system is huge. Based on everyone's experiences here, it sounds like I should expect maybe 8-16 penalty weeks for my overpayment amount, which honestly isn't as terrifying as I initially thought. And the fact that these only matter for future UI claims makes it much more manageable mentally. I'm calling EDD tomorrow to set up a repayment plan - seems like everyone who was proactive about this was able to work out reasonable monthly payments. This community has been incredible for showing that while this situation absolutely sucks, it's totally survivable and won't destroy your career prospects. Thank you all for sharing your experiences!

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I'm in almost the exact same boat as you - just got my notice a few days ago for $2,150 and I've been a complete wreck about the background check situation! This thread has been such a godsend for my anxiety levels. The gig work reporting is so confusing - I think I mixed up when to report payments received versus work actually performed. Your penalty week estimate of 8-16 weeks sounds about right based on what everyone else has shared. It's actually reassuring to see such consistent experiences across different overpayment amounts. I was imagining some crazy high number of penalty weeks, but this seems much more reasonable. I'm definitely following everyone's advice about calling EDD ASAP to set up payments. Sounds like they're pretty flexible as long as you're upfront about wanting to make it right. Good luck with your final rounds - at least we can both interview with confidence knowing this won't come up!

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I'm going through the exact same thing right now and this thread has been incredibly reassuring! Just received my overpayment notice yesterday for $2,450 after incorrectly reporting part-time hours for several weeks (I was confused about whether to include training hours that weren't paid yet). The background check anxiety has been absolutely consuming me - I have three interviews scheduled next week and was convinced I'd have to somehow explain this situation. Reading all these confirmations from people who've actually been through employment screening, especially the HR professional's input, is such a massive weight off my shoulders. Based on everyone's experiences shared here, it sounds like I should expect somewhere around 10-16 penalty weeks, which honestly feels manageable knowing they only apply to future UI claims if needed. I was imagining much worse scenarios! I'm calling EDD first thing Monday morning to set up a repayment plan. It's clear from everyone's advice that being proactive is absolutely crucial, and it sounds like they're reasonable about working out payment terms as long as you reach out quickly. Thank you to everyone who took the time to share their experiences - it's amazing how much less alone and stressed I feel knowing that other people have successfully navigated this exact situation. This community support means everything when you're dealing with something this overwhelming!

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I totally understand that anxiety about the training hours reporting - that stuff is so confusing! I made similar mistakes with how to report unpaid training time versus actual work hours. It's such a relief to know from everyone here that this won't show up on background checks, especially when you have interviews lined up. Your penalty week estimate of 10-16 sounds right on track with what others have experienced for similar overpayment amounts. I was also imagining worst-case scenarios before finding this thread! Definitely call EDD on Monday - from what everyone's shared, they really do seem to work with you on reasonable payment plans as long as you're proactive about it. Good luck with your interviews next week! At least you can go in with confidence knowing this won't come up at all.

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I'm currently going through this exact same situation and this entire thread has been absolutely invaluable! Just received my overpayment notice three days ago for $2,800 after making mistakes reporting my part-time retail hours during certification (I was confused about whether to include orientation shifts that were unpaid). The stress about background checks has been completely overwhelming - I'm in the middle of interviewing for a few positions and was having nightmares about having to explain this to potential employers. Reading all these real experiences from people who've actually gone through employment screening, plus the confirmation from the HR professional, has literally saved my sanity. From what everyone's shared, it looks like I should expect roughly 10-20 penalty weeks for my overpayment amount, which actually seems much more manageable than the catastrophic scenarios I was imagining. Knowing these only affect future UI claims makes it feel less scary. I'm calling EDD tomorrow morning to set up a repayment plan - it's crystal clear from everyone's advice that being proactive is absolutely essential. Sounds like they're pretty reasonable about payment amounts as long as you reach out quickly and show you want to make things right. Thank you so much to everyone who shared their experiences here. This community support has been a lifeline during what's honestly been one of the most stressful weeks of my life. It's incredible how much better I feel knowing that other people have successfully gotten through this exact situation!

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I'm so glad this thread has been helpful for you too! The orientation shift reporting confusion is exactly the kind of thing that trips people up - those unpaid training hours are really unclear on how to handle them properly. I made similar mistakes early on and it's so easy to see how these errors happen. Your penalty week estimate of 10-20 weeks sounds about right based on what everyone else has experienced with similar overpayment amounts. I was also catastrophizing before finding all these real experiences from people who've been through it! Definitely call EDD tomorrow - every single person here who was proactive about setting up their repayment plan had good experiences with them being flexible on payment amounts. It seems like they really do want to work with people who are genuinely trying to make things right. Good luck with your interviews! You can go in with total confidence knowing this won't show up anywhere. It's such a relief to not have that hanging over your head during the interview process. You've got this!

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