EDD penalty weeks vs. overpayment - how do they affect my claim balance?

Penalty weeks and overpayments are completely different things! The penalty weeks are basically weeks you qualify for benefits but don't get paid as a punishment. The overpayment is money you have to pay back separately. So your 6 week penalty doesn't reduce what you owe for the overpayment at all. It's basically a double whammy - you have to serve the penalty AND pay back the money. EDD is brutal.

The previous commenter is correct. Penalty weeks and overpayment repayments are two separate things. Penalty weeks: These are weeks where you qualify for benefits but don't receive payment. Think of them as "serving time" for the reporting mistake. These weeks do come from your claim balance - they're using up your eligible weeks without paying you. Overpayment: This is the actual money EDD says you received incorrectly that needs to be repaid. You can either pay this back directly or have it deducted from future benefits after your penalty weeks are served. For budgeting purposes, you should expect: 1. No payment during your remaining 3 penalty weeks 2. After penalty weeks are completed, you'll start receiving benefits again BUT with a portion withheld for overpayment recovery (usually 25-50% of your weekly benefit amount) You should have received a Notice of Overpayment with the exact amount. If you didn't, call EDD and request a copy.

yea i had 4 penalty weeks last year cuz i reported wrong income too. they dont count toward ur overpayment AT ALL. its just free money for edd basically. then after the penalty weeks they took like 40% of my weekly payment til the overpayment was gone. took like 2 months to pay it all back.

not worth it for me. i heard they usually dont change penalty weeks unless u can prove u didnt actually make a mistake. if u admit u made a mistake they just keep the penalties.

I'm going through exact same thing!!!! Got 8 penalty weeks for "misreporting" but it was literally a TYPO on my certification. Mine says false statement penalty too. Just finishing week 5 of penalties. So tired of this system treating us like criminals for honest mistakes 😡

I can definitely share some insights on penalty weeks from my experience handling these situations. Here's what you need to know: 1. Penalty weeks and overpayments are completely separate consequences 2. Penalty weeks consume your eligible claim weeks without paying you 3. After serving penalty weeks, you'll begin receiving benefits again 4. At that point, EDD typically recoups overpayments by withholding a percentage of your weekly benefits (25-50%) If you haven't received formal documentation about your overpayment, this is concerning. You should have received a Notice of Overpayment detailing the amount, reason, and your appeal rights. I'd recommend using Claimyr to get through to an EDD representative quickly. I was in a similar situation and spent days trying to reach someone. With Claimyr (claimyr.com), I got through in about 20 minutes. They have a video demo showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km You need to specifically request your Notice of Overpayment and ask for a breakdown of the alleged false statement. This will help you determine if you want to appeal the decision.

Call and speak to a tier 2 specialist about setting up a payment plan! Sometimes they let you pay as little as $10 a month on overpayments. WAY better than them taking half your benefits. But YOU MUST CALL and set it up before they start automatically taking it from your future payments. They don't tell you this option exists unless you ask!!!

Did anybody notice OP said they "never got anything in the mail"?? That's another problem right there. EDD is REQUIRED to send you written notice about penalties and overpayments. You should have received something called a "Notice of Determination" explaining the false statement AND a separate "Notice of Overpayment." The fact you didn't get either means something is wrong with your contact info or EDD messed up. You might have grounds to appeal based on that alone!

Regarding appeals and not receiving notices - if you can prove you didn't receive proper notification, you may have grounds for what's called "good cause" for a late appeal. Normally you have 30 days to appeal a determination, but if you can show you never received the determination notice, EDD may allow you to file a late appeal. When you call EDD, ask specifically: 1. When was the Notice of Determination issued? 2. When was the Notice of Overpayment issued? 3. Request copies of both documents be sent to you 4. Ask about the process for filing a "good cause" late appeal based on non-receipt of notices Document everything - the date/time of your call, who you spoke with, and what they told you. This documentation will be helpful if you decide to appeal.

Just wanted to add that if you do decide to appeal, make sure you understand the difference between appealing the "false statement" determination versus appealing the overpayment amount. You can actually appeal both separately. The false statement appeal would challenge the penalty weeks, while the overpayment appeal would challenge how much they say you owe. Since you mentioned you made an honest mistake with earnings reporting, you might want to focus on getting the "false statement" changed to "non-fault overpayment" which would eliminate the penalty weeks entirely while still requiring you to pay back the money. Non-fault overpayments don't come with punishment weeks.

This is such a frustrating situation and you're definitely not alone in dealing with EDD's confusing system. I went through something similar last year and want to echo what others have said - the penalty weeks and overpayment are completely separate punishments, which feels incredibly unfair for honest mistakes. A few things that might help: 1. Definitely push hard for those written notices you never received. That's a huge red flag and could be your ticket to getting this resolved. 2. When you call, ask specifically about changing the determination from "false statement" to "non-fault overpayment" like Freya mentioned. This could eliminate your penalty weeks entirely. 3. If you do end up having to pay back the overpayment, absolutely ask about the payment plan option before they start automatically deducting from your benefits. The fact that you're taking responsibility and willing to pay back what you owe shows this was clearly an honest mistake, not intentional fraud. EDD's system is set up to treat everyone like criminals first and ask questions later. Keep fighting for yourself - you deserve better treatment than this!

I'm dealing with something similar right now and this thread has been incredibly helpful! Just wanted to add that when you call EDD, it's worth asking them to walk you through exactly what earnings they think you misreported. Sometimes there are calculation errors on their end or they misinterpreted what you submitted. I had a friend who discovered EDD was counting his gross pay twice for the same period, which turned his "false statement" into an EDD error. Also, if you're struggling to get through to them by phone, try calling right at 8am when they open - that's when I've had the most success. The wait times are brutal later in the day. Good luck with getting those notices and hopefully you can get this changed to non-fault overpayment. It's crazy that they penalize people so harshly for honest mistakes in such a confusing system!

I've been following this thread closely and wanted to share some additional insights that might help. First, everyone's advice about the penalty weeks and overpayments being separate is spot on - it's one of the most confusing aspects of EDD's system. One thing I haven't seen mentioned yet is that you should also ask EDD for a complete audit trail of your case when you call. Request copies of ALL determinations made on your claim, not just the ones they're supposed to mail you. Sometimes there are preliminary determinations or internal notes that can shed light on how they reached their decision. Also, regarding the earnings reporting issue - make sure you understand exactly which weeks EDD is saying you misreported. Sometimes they flag the wrong certification weeks due to processing delays, and you end up getting penalized for reporting earnings in the wrong period even though the total amounts were correct. If you do decide to appeal, consider requesting an in-person hearing rather than a phone hearing if possible. It's easier to present documentation and explain the situation when you're face-to-face with the administrative law judge. Document absolutely everything - dates, times, representative names, confirmation numbers. EDD's record-keeping can be spotty, and having your own detailed records will be crucial if this escalates to an appeal. Keep pushing for answers and don't let them brush you off. You deserve clear explanations of what happened and what your options are moving forward.

I just wanted to chime in as someone who went through a very similar situation about 6 months ago. Reading your post brought back all the frustration I felt dealing with EDD's confusing system! Everyone here has given you excellent advice, especially about the penalty weeks and overpayments being separate punishments (which is absolutely infuriating for honest mistakes). The fact that you never received any written notices is a HUGE red flag and could be your best path forward. One thing I'd add - when you call EDD tomorrow, also ask them to put a "hold" on any automatic benefit deductions for overpayment recovery until you can sort out the notice issue and potentially file an appeal. Sometimes they'll agree to pause the collections process if there are procedural problems like missing notices. Also, keep in mind that even if you can't get the false statement determination overturned, you might still be able to negotiate the repayment terms. I was able to get my overpayment reduced by about 30% by providing better documentation of my actual earnings during the disputed period. The most important thing is don't give up! EDD banks on people just accepting their determinations because the appeals process seems overwhelming. But from what you've described, you have legitimate grounds to challenge both the penalty weeks and possibly even the overpayment amount. Good luck with your call tomorrow - I'm rooting for you!

I've been in a similar situation and want to stress how important it is to get those missing notices resolved first before anything else. The fact that you never received written notification is actually a bigger deal than you might realize - EDD has strict procedural requirements about providing proper notice, and failing to do so can invalidate their entire determination. When you call, don't just ask for copies of the notices - specifically ask them to verify what address they used when they allegedly mailed them. Sometimes there are system glitches where notices get sent to old addresses even when your current address is correct in their system. If they can't prove proper service of the notices, you've got a strong foundation for appeal. Also, document the fact that you had to call EDD multiple times just to find out what the penalty was for. The representatives should have been able to explain the determination immediately, and the fact that they seemed "confused" suggests there might be problems with how your case was processed. One more thing - if you do end up appealing, consider requesting all the evidence EDD relied on to make their false statement determination. Sometimes they base these decisions on incomplete information or misinterpret the data they have. Getting the full picture of their reasoning can help you build a stronger counter-argument. Keep us posted on how your call goes tomorrow. This thread has become a great resource for others dealing with similar EDD issues!

As someone who works with unemployment cases regularly, I want to emphasize something crucial that others have touched on but bears repeating: the lack of proper written notice you received is potentially your strongest argument here, even more than the merits of whether your earnings reporting was truly a "false statement." EDD is legally required to provide written notice of any adverse determination, including both the penalty weeks and overpayment. The fact that you had to call multiple times just to learn what was happening suggests a serious procedural violation on their part. When you call tomorrow, here's a specific script that might help: 1. "I need to speak with a Tier 2 specialist about missing required notices on my claim" 2. "I was never provided written notice of either the false statement determination or overpayment - please verify what address these were allegedly sent to" 3. "I want to request copies of ALL determinations made on my claim, including any internal processing notes" 4. "Based on the lack of proper notice, I need information about filing a good cause late appeal" The key is being specific about procedural violations rather than just asking general questions. This often gets you transferred to more knowledgeable staff who can actually help rather than just reading from scripts. Also consider documenting your call with a follow-up written request through their online portal or fax - having everything in writing protects you if they later claim the conversation never happened. You're absolutely right to fight this, especially given the procedural issues. Keep us updated!

Just wanted to add one more important point that I learned the hard way - when you're dealing with EDD penalty weeks and overpayments, make sure to keep certifying for benefits even during your penalty period! I know it seems pointless since you're not getting paid, but if you stop certifying, they can actually extend your penalty period or create additional issues with your claim. Also, regarding the earnings reporting confusion that started all this - EDD's system is notoriously bad at handling part-time work transitions. I've seen so many cases where people get hit with "false statement" penalties simply because EDD's automated system can't properly process earnings that span multiple certification periods or when someone starts/stops a job mid-period. The fact that you're willing to take responsibility and pay back any legitimate overpayment shows this was clearly an honest mistake, not fraud. The "false statement" classification should be reserved for intentional deception, not clerical errors or system confusion. Definitely push for that reclassification to "non-fault overpayment" when you call - it could save you those remaining penalty weeks entirely. Good luck with your call tomorrow! This whole thread has been such a great resource for understanding how EDD's penalty/overpayment system actually works (or doesn't work, in many cases).

I'm so sorry you're dealing with this frustrating situation! Reading through all the excellent advice here, I wanted to add one more perspective as someone who recently went through a similar earnings reporting issue. The fact that you never received any written notices is absolutely huge - that's not just an inconvenience, it's a violation of your due process rights. EDD is legally required to send you both a Notice of Determination for the false statement penalty AND a separate Notice of Overpayment. Without proper notice, you couldn't have appealed within the normal timeframes, which gives you strong grounds for a "good cause" late appeal. When you call tomorrow, I'd also suggest asking them to explain exactly HOW they determined your earnings reporting was a "false statement" versus just an error. There's supposed to be intent behind a false statement - meaning they have to prove you deliberately tried to deceive them, not just that you made a mistake. For part-time work situations especially, their system often flags honest reporting errors as intentional fraud. One thing that worked for me was asking the rep to walk through my actual certification responses screen by screen compared to what they think I should have reported. Sometimes you'll discover they misinterpreted your responses or there was a technical glitch that caused your information to be recorded incorrectly. Don't let them intimidate you into just accepting this determination. You clearly made an honest mistake and are willing to make it right - that shouldn't come with such harsh penalties. Keep fighting for yourself!