EDD reporting requirements for class action settlement money - will this affect my benefits?

i got money from a class action 2 yrs ago and didnt report it. nobody ever said anything to me. pretty sure its not counted as wages

You absolutely need to report this. Class action settlements are considered income by the EDD when determining UI eligibility. When you certify, there's a question asking if you received "other income" - settlement money falls under this category. Since you've already certified for this period, you should contact EDD immediately to report this omission. You can submit a correction by calling them or by uploading a message through your UI Online account. Failing to report income can result in an overpayment determination, possible penalties, and potentially a false statement disqualification that could affect your claim for weeks. Better to be proactive about fixing this than having them discover it later.

This is actually a bit complicated. Not all settlement money is treated the same by EDD. It depends on what the settlement was FOR: 1. If the settlement was for lost wages/back pay - YES, you need to report it as income for the week you received it 2. If the settlement was for damages (emotional distress, punitive damages, etc.) - NO, you don't report it Since yours was for unpaid overtime, that's considered wage replacement, so you should report it. The best way to handle this since you've already certified is to call EDD and explain that you need to correct your certification. You can also submit a message through UI Online explaining the situation. Don't panic though - honest mistakes happen, and it's much better to self-report than have them discover it later during an audit.

OMG im in the exact same boat!!! got money from a wage lawsuit against my old job (restaurant) and I STILL haven't figured out if i needed to report it!!! been so stressed because i can't get through to anyone at EDD to ask!!! tried calling probably 50 times over the past two weeks and keep getting the "we're experiencing high call volume" message and then it hangs up on me!!!! so frustrating!!!!!!

My brother got a settlement check and didn't report it and then 8 months later EDD came after him for overpayment plus penalties. They said he committed fraud by not reporting income. He's still dealing with the appeal process. Just saying, better safe than sorry.

Just to clarify something important that people often mix up: The rules for EDD reporting are different from IRS tax reporting. A settlement might be taxable income for federal/state taxes but NOT count as income for EDD purposes, or vice versa. In your case, since it's back wages (overtime pay), it counts for both. When you call EDD, make sure you specifically mention it's a class action settlement for unpaid wages. The representative will know how to properly code this in your certification correction.

The most important thing is whether the settlement affects your WEEKLY claim amount. EDD cares about income on a week-by-week basis. So if you received the settlement check during a week you certified for, you need to report it for THAT week. It won't affect other weeks. Don't overcomplicate this - just report it for the specific week you got the money.

Thank you everyone for all the advice! I called EDD this morning (took forever to get through but I finally did) and explained the situation. The rep confirmed I need to report the settlement since it was for unpaid wages. She helped me submit a correction to my certification for the week I received the check. My weekly benefit will be reduced for that one week because of the additional income, but the rest of my claim is unaffected. Such a relief to have this handled properly!