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.