EDD wants to know about my personal injury settlement - will they reduce my weekly UI benefit?

ya gotta report it bc EDD asks if u received any other money each time u certify. but i think settlements r different from regular income

Personal injury settlements typically don't affect your UI benefits in California because they're not considered wages or income that would reduce your weekly benefit amount. However, you should still report it when certifying because EDD asks if you received "other income" during that period. The key distinction is that settlements for physical injuries are compensation for damages, not earnings from work. When you certify, report it as "other" income and specify it's a personal injury settlement. You'll likely need to speak with an EDD representative to explain the nature of the payment to ensure it's properly categorized, but it shouldn't reduce your weekly benefit.

My friend's brother's settlement DID effect his benefits!!! EDD is TOTALLY inconsistent and it depends who you talk to!! They took his entire check for 3 weeks and said his "income" was to high that month. BE CAREFUL!!!!!

I had a similar situation with a smaller settlement ($5k). Here's what I learned the hard way - don't just report it online without talking to someone at EDD first. The online system isn't nuanced enough to distinguish between types of income. I spent WEEKS trying to get through to EDD to explain it was a personal injury settlement after they reduced my benefits. I finally used Claimyr (claimyr.com) to get through to an agent quickly. They have this video that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Once I got an actual agent on the phone, they corrected my claim and restored my full benefits. Settlements for physical injuries are NOT supposed to reduce your UI, but you DO need to report it.

omg i HATE how freaking complicated this all is!!! why cant they just make it clear?? like im trying to follow the rules but they make it impossible to know what the rules even ARE 😫😫

To clarify the official policy: Personal injury settlements are not considered wages or income that would reduce your weekly benefit amount. This is consistent with both tax law and EDD policy. Here's what to do: 1. When certifying, report the settlement under "other income" 2. In the notes/explanation field, clearly state "PERSONAL INJURY SETTLEMENT - NOT WAGES" 3. Call EDD to explain the situation and have it properly documented in your file 4. Keep all settlement documentation in case you need it for appeals Settlements for lost wages can affect benefits, but settlements for physical injuries, pain and suffering do not. The confusion happens when claimants don't specify the type of settlement or when representatives aren't familiar with the distinction.

my cousin got a settlement for like 30k and didn't tell edd and they found out somehow and he had to pay back all his benefits plus penalties!! just tell them!

The whole system is designed to TRAP people! They make the rules complicated on PURPOSE so they can deny benefits and save money. I've seen it happen over and over. You report honestly and still get punished because some random EDD worker doesn't understand their own rules. The whole thing is BROKEN!

Quick update on what you should expect: When you call EDD about this, ask to speak with a tier 2 representative who can make determinations about your eligibility. Regular representatives might not be familiar with how settlements are handled. Make sure to emphasize that your settlement was for physical injuries and medical expenses, not for lost wages or employment-related issues. The distinction matters significantly for how it's treated. Also, document the call - get the representative's ID number and write down when you called and what was discussed. This will help if there are any issues later.

I went through this exact situation last year with a $8,000 settlement from a slip and fall. Here's what worked for me: I called EDD BEFORE I cashed the settlement check and explained the situation. They put a note in my file that it was a personal injury settlement for medical expenses and pain/suffering. When I certified for benefits that week, I reported it as "other income" but referenced the note in my file. My benefits weren't reduced at all. The key is getting ahead of it and having proper documentation. Don't wait until after you've already received the money - call them now while you have all the settlement paperwork fresh in hand.

I just want to echo what others have said about calling EDD proactively - it really makes a difference! I had a workers' comp settlement a few years back (which IS different from personal injury and can affect benefits), but the experience taught me how important it is to get everything documented properly upfront. One thing I'd add: when you call, ask them to email you a confirmation of what was discussed and noted in your file. Not all reps will do this, but some will send you a brief summary. Having that email trail can be super helpful if there are any mix-ups later. Also, don't be discouraged if the first person you talk to seems unsure - personal injury settlements aren't something they deal with every day. If you get conflicting information, ask to speak with a supervisor or tier 2 rep who has more experience with these situations. Good luck! Sounds like you're being really responsible about handling this properly.

Just want to add my experience from a few months ago - I had a $9,200 personal injury settlement from a bike accident and was terrified it would mess up my UI benefits. After reading horror stories online, I decided to call EDD before doing anything. The rep I spoke with was actually really knowledgeable and explained that personal injury settlements are specifically excluded from counting as "income" for UI purposes because they're compensatory damages, not earnings. She walked me through exactly how to report it when certifying - mark it as "other income" but include a note that it's a personal injury settlement. My benefits weren't affected at all. The key thing she emphasized was being upfront about it rather than trying to hide it, because they can and do cross-reference with insurance companies and legal databases. One tip: have your settlement breakdown ready when you call. They asked me to confirm what portion was for medical expenses vs pain/suffering, though she said both categories are fine and don't count against benefits. Definitely call them first - it'll give you peace of mind and proper documentation!

I'm dealing with a similar situation right now - just received notification that my personal injury settlement from a workplace slip (not workers' comp, just regular premises liability) is coming through next month. Reading through everyone's experiences here has been incredibly helpful! Based on what I'm seeing, the consensus seems to be: 1) Call EDD BEFORE you get the money, 2) Have all your settlement documentation ready, 3) Emphasize it's for physical injuries/medical bills not lost wages, 4) Get everything documented in your file, and 5) Ask for tier 2 rep if needed. One question for those who've been through this - did any of you have to deal with settlements that included a small portion for "lost wages" along with the medical/pain portions? My lawyer mentioned there might be a minor component for the few days I missed work due to the injury. Wondering if that changes how EDD handles it or if I need to separate that amount when reporting. Thanks to everyone sharing their experiences - it's making this way less scary to navigate!

I went through something very similar with a $15k settlement from a motorcycle accident about 6 months ago. The anxiety about potentially losing UI benefits was real! Here's what I learned: Personal injury settlements for physical injuries absolutely should NOT affect your weekly UI benefits. The key is proper documentation and communication with EDD. I called them before depositing my check (thanks to advice I found online similar to what folks are sharing here) and spoke with a tier 2 rep who was very knowledgeable. What really helped my case: I had my lawyer prepare a detailed letter explaining that the settlement was specifically for medical expenses, pain/suffering, and property damage - NOT for lost wages or employment-related issues. When I called EDD, I read them this breakdown and they noted it in my file. When certifying, I reported it under "other income" with the note "PERSONAL INJURY SETTLEMENT - MEDICAL/PAIN&SUFFERING ONLY" and had zero issues. My $465/week benefit continued unchanged. The most important thing is being proactive and transparent. Don't let fear make you hide it - EDD will find out eventually and then you'll have bigger problems. Call them first, get proper documentation, and you should be fine. Your $13,500 settlement shouldn't touch your weekly benefits if handled correctly.