How does California EDD unemployment know when you are working?
So I just started collecting unemployment about six weeks ago and honestly the whole system kind of stresses me out. I've been doing everything right - certifying every two weeks, reporting my job search activities, all that. But my neighbor (who works in HR) casually mentioned that California EDD has ways to find out if you're working that most people don't even know about. Now I'm paranoid and curious at the same time. Like how does unemployment know when you are working? I always report everything honestly but now I'm wondering what actually happens behind the scenes. Does EDD cross-reference with employers? Do they check tax records? I've heard different things from different people and want to understand how this actually works so I know I'm doing everything right. I reported some part-time babysitting I did last month for about $180 and want to make sure that was handled correctly. Anyone have real insight into how EDD verifies employment?
83 comments

Kristin Frank
This is actually a really important question and I'm glad you asked it honestly. California EDD has several verification methods working simultaneously. The primary one is something called the Employment Development Department's cross-match program - they regularly share data with the Employment Development Department's own tax records because employers are required to report new hires to the California New Employee Registry within 20 days of hire. So if you start a job and your employer reports you, EDD gets a notification that can flag your claim. They also run periodic matches against quarterly wage records submitted by all California employers. The quarterly wage data runs a bit behind - usually 3-6 months - but it catches unreported earnings. The short answer is yes, they will eventually find out about any W-2 employment in California. Good news is you're already reporting everything correctly, which is exactly right.
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Micah Trail
This is accurate. I work in workforce development and the New Employee Registry cross-match catches a surprising number of cases. Employers who fail to report new hires get fined, so most do it promptly. The quarterly wage match is the bigger dragnet though.
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Nia Watson
wait so they check ALL employers not just like big companies? even small businesses?
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Kristin Frank
Yes, all employers who pay wages in California are required to report to EDD quarterly and register new hires. Size doesn't matter. The only gap is self-employment and gig work, which is why EDD asks you to self-report those earnings on your certification.
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Alberto Souchard
I had no idea about the new employee registry thing. That's actually kind of reassuring that the system catches cheaters because I've been reporting everything and it makes me feel better knowing honest people aren't at a disadvantage.
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Katherine Shultz
Former EDD contractor here. Adding to what was said above - there's also interstate data sharing. California participates in a national system that allows EDD agencies to share wage data across state lines. So if you move to Nevada and start working there while still collecting California UI, that can eventually get flagged too. The system isn't real-time but it's pretty thorough on the back end. The federal government coordinates a lot of this through the Department of Labor.
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Marcus Marsh
Oh wow I genuinely didn't know it crossed state lines. Makes sense though.
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Hailey O'Leary
Does this mean if I did like one day of work in Arizona visiting family I need to report that?? I'm freaking out now
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Kristin Frank
Yes you should report any earnings on your weekly or biweekly certification regardless of which state they came from. Even a single day's wages counts. Report the gross amount earned (not what you received) for the week in which you performed the work. EDD uses a formula to determine how much it reduces your benefit for that week.
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Katherine Shultz
@anxious person - don't freak out, just report it correctly going forward. The system is designed for honest reporting. The consequences come from deliberately NOT reporting, not from occasional out-of-state day work that you disclosed.
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Cedric Chung
I went through an EDD audit last year because they flagged my claim through the quarterly wage match I mentioned above. It was genuinely terrifying but it resolved okay because I had reported everything. What I learned during that whole process: EDD also does random audits completely separate from data matching. They pull claims randomly and manually review them. During mine they asked for pay stubs, bank statements, and my job search log. The job search log stuff is serious - they actually verify employers you listed contacted you. So it's not JUST about employment, it's about your whole certification being accurate. Scary experience but glad I had clean records.
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Jabari-Jo
AuthorWait they actually call the employers you listed in your job search log to verify?? I had no idea. I've been keeping my log but now I want to make sure all my entries are real contacts.
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Cedric Chung
Yes they can and do. Not always, but during an audit they will. Keep records - emails, LinkedIn messages, application confirmations. Screenshots are your friend.
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Talia Klein
This is why I take photos of every application confirmation screen. Started doing it after a friend got audited and couldn't prove some of his job search activities.
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Nia Watson
okay so basically just be honest and keep records and you're fine. sounds stressful but manageable
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Maxwell St. Laurent
I spent WEEKS trying to get someone at EDD on the phone after I got flagged because my employer reported my new hire status before I even started the actual job (just signed offer letter, hadn't worked a single day yet). The automated system was useless and I was getting nowhere trying to explain the situation online. Someone in another thread told me about Claimyr - claimyr.com - and honestly it was a game changer. They help you actually reach a live EDD agent instead of sitting on hold for hours or getting disconnected. There's a video showing how it works at https://youtu.be/JmuwXR7HA10. Got through to an agent within a couple hours and cleared the whole thing up. Turns out early new hire reporting causing claim flags is pretty common and agents can resolve it quickly once you actually reach one.
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Jabari-Jo
AuthorOh this is really good to know because I've been dreading the idea of having to call EDD about anything. Bookmarking that site just in case.
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Hailey O'Leary
does it actually work?? I've literally never gotten through to a real person at EDD in like 6 attempts
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Maxwell St. Laurent
It worked for me and several people I've referred to it since. You can watch the demo video to see exactly what the process looks like before committing. I was skeptical too but I was desperate at that point.
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PaulineW
yeah the hold times at EDD are absolutely brutal. Anything that helps get through to an actual human is worth knowing about
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Annabel Kimball
Something nobody mentioned yet - EDD also uses the federal 1099 system to some extent, and they definitely cross-reference with state income tax returns filed with the Franchise Tax Board. So even if you did gig work, freelance, or contract work and received 1099s, that income is reported to the IRS and FTB. EDD doesn't necessarily catch it in real-time but when you file your state taxes, there can be a reconciliation that flags discrepancies between what you reported to EDD and what your 1099s show. This is how a lot of gig workers get caught reporting zero income while actually earning through platforms like DoorDash or Upwork.
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Marcus Marsh
The 1099 to FTB to EDD pipeline is real. My cousin got an overpayment notice 14 months after his claim closed because his DoorDash 1099 showed income he didn't properly report. Had to pay back like $2,800.
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Jabari-Jo
AuthorThis is exactly what I was worried about. My babysitting was cash so there's no 1099 but I still reported it. Glad I did.
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Annabel Kimball
Good on you for reporting it. Cash payments are tricky because there's no paper trail EDD could easily find, but you're still legally required to report them, and the penalties for not reporting (even if never caught) can include fraud charges. Not worth the risk.
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Micah Trail
To give a comprehensive answer since this is clearly confusing people: here's the full picture of how EDD verifies employment status during an active UI claim. 1. New Employee Registry - employers must report new hires within 20 days, this is automatic and consistent 2. Quarterly Wage Records - every California employer submits wage data quarterly to EDD, matched against active claims 3. Interstate Data Exchange - national network for cross-state wage matching 4. FTB/IRS Data Cross-Reference - tax filing reconciliation, catches 1099 and self-employment income 5. UI Integrity Random Audits - random claim reviews regardless of flags 6. Tip Lines - EDD has an anonymous reporting system for fraud tips 7. Social Media Monitoring - yes, EDD investigators do look at social media for cases under active fraud investigation The most common triggers are items 1 and 2. If you're certifying honestly and reporting all earnings in the week earned (not week paid), you have nothing to worry about.
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Nia Watson
the social media one is wild. like they scroll instagram looking for people claiming to be unemployed while posting about their job??
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Micah Trail
Basically yes, but it's targeted at cases already flagged for fraud investigation, not passive monitoring of all claimants. It becomes evidence in prosecution cases. If you're certifying honestly there's zero reason to think anyone is looking at your instagram.
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Alberto Souchard
This list is super helpful actually. The tip line one is interesting - I had no idea people could report suspected fraud. Makes sense though.
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Chris Elmeda
I reported someone once. My former coworker was collecting while working full time at a new place and bragging about it. Don't feel bad about using the tip line for actual fraud.
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Hailey O'Leary
ok i'm gonna be honest i'm in a situation right now where i worked a couple gigs i'm not sure i reported right and now i'm scared. like i did report SOME of the earnings but i think i might have reported the wrong week? like i reported the week i got paid not the week i actually worked. is that a big deal??
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Kristin Frank
This is actually a really common mistake and it IS the correct thing to flag. EDD requires you to report earnings in the week you performed the work, not the week you received payment. If you reported payment dates instead of work dates, you may have under-reported some weeks and over-reported others. The fix is to contact EDD and request to amend your certifications. It's much better to self-correct than to let it be discovered later.
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Hailey O'Leary
okay so i won't automatically get hit with a fraud charge for making an honest mistake like that right?
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Micah Trail
Honest mistakes that you proactively correct are treated very differently than intentional fraud. EDD distinguishes between overpayments due to claimant error vs. claimant fraud. Error-based overpayments typically result in a repayment plan without penalties. Fraud determinations require intent. Call EDD and explain the timing error and ask to correct your certifications.
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Maxwell St. Laurent
If you're having trouble getting through to EDD to fix this, seriously check out claimyr.com - getting an agent on the phone quickly matters a lot when you're trying to proactively correct something before it gets flagged. The video at https://youtu.be/JmuwXR7HA10 explains the whole process.
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Talia Klein
Reading this thread as someone who went through an overpayment situation last year... the worst part about EDD's verification system is how SLOW it is. They might not catch something for 8-12 months after your claim ends, and then you get a scary letter out of nowhere demanding repayment. I got mine 10 months after my claim closed. The amount of stress that letter caused was enormous. Always certify perfectly because you won't know about a mistake until way later.
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Marcus Marsh
The delayed detection is genuinely one of the most stressful parts. You think you're done with EDD and then boom, letter arrives.
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Talia Klein
Exactly. And by that time you may have already spent that money on bills and rent and don't have it sitting around to repay. I had to do a repayment plan.
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Jabari-Jo
AuthorHow did the repayment plan work? Like did they give you options or just demand a lump sum?
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Talia Klein
You can request a payment plan. They sent a form and I set up a monthly payment amount I could manage. As long as you respond to the notice promptly and don't ignore it, they work with you. Ignoring the letter is the worst thing you can do.
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Chris Elmeda
Something that trips people up that nobody mentioned - if you do any work for a family member's business, even informally, that still counts as wages you need to report. My sister asked me to help with her shop for two weekends and paid me cash. I almost didn't report it thinking it wasn't 'real' employment. But earnings are earnings regardless of who pays you. Reported it correctly and had no issues.
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Nia Watson
good point, I think a lot of people assume family work doesn't count
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Kristin Frank
Correct. The only non-reportable income on UI certifications is things like investment dividends, rental income (in most cases), social security payments, and similar passive income. Active work for pay, regardless of the employer's identity or relationship to you, must be reported.
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Jabari-Jo
AuthorWhat about selling stuff online? Like if I sold some old furniture on Facebook Marketplace while on unemployment?
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Kristin Frank
Since someone asked above - selling personal items you already own (like old furniture, used clothing, etc.) is generally NOT considered earnings for UI purposes because you're not providing a service or generating new income, you're liquidating existing assets. However, if you're regularly buying items to resell for profit (like flipping merchandise), that would be considered self-employment income and needs to be reported. The distinction is personal property liquidation vs. operating a resale business.
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Jabari-Jo
AuthorOh good, I sold my old sectional on Marketplace last month and had a mild panic reading this thread. Sounds like I'm fine.
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Alberto Souchard
This is such a useful clarification. I've seen people argue about this and the answer always seemed murky.
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Nia Watson
what about like selling stuff on etsy? handmade things?
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Kristin Frank
Etsy handmade goods would typically be considered self-employment since you're providing a creative service and goods. You'd report the net earnings (after materials costs) on your certification. Same rules as any other self-employment income.
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PaulineW
Can I just say this whole thread is giving me anxiety on behalf of everyone in it lol. The California EDD system feels designed to catch you doing something wrong even when you're trying to do everything right. I've been on UI twice and both times I was so paranoid about my certifications. Kept meticulous records both times and was fine, but the stress is real.
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Marcus Marsh
The anxiety is real. I made a spreadsheet tracking every job search contact, every day I worked any hours, everything. Overkill probably but peace of mind is worth something.
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PaulineW
Same. The documentation burden is honestly significant for something that's supposed to be a temporary safety net.
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Cedric Chung
I think the paranoia is actually a healthy sign that you take it seriously. The people who get in trouble are usually the ones who aren't thinking about it at all.
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Katherine Shultz
One more thing worth mentioning for completeness: EDD has a dedicated fraud investigation unit. If a case is referred to them (either from data matching or a tip), they have subpoena power to request bank records, payment platform records (Venmo, PayPal, Cash App), and employer records. For someone running a deliberate fraud scheme, there's almost no way to hide it permanently. But this level of investigation is reserved for suspected intentional fraud with significant dollar amounts - not someone who accidentally reported a date wrong.
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Hailey O'Leary
ok the venmo/cashapp thing is news to me. so even cash payments through apps could be tracked?
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Katherine Shultz
In a formal investigation with subpoenas, yes. PayPal and Venmo are required to respond to legal process. This is not something that happens for minor clerical errors on certifications - we're talking about cases where investigators already have reason to believe significant intentional fraud occurred.
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Chris Elmeda
This is why people who think they're being clever by getting paid via Zelle or Venmo instead of check are not actually cleverer than EDD's fraud unit.
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Jean Claude
Just want to add a voice of sanity here - I've been through three separate unemployment periods in my life and never had any issues. The system works fine if you just report everything honestly and keep good records. The horror stories you hear are almost always from people who were either intentionally hiding income or made mistakes they didn't try to correct. If you're the type of person who reads threads like this because you're worried about doing it right, you're probably doing it right.
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Jabari-Jo
AuthorThis is genuinely reassuring thank you. I came here worried and feel a lot better now.
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Alberto Souchard
agreed, this thread has been really helpful. lots of good info and not as scary as I thought it was going to be.
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PaulineW
Solid perspective. The worry itself is a sign you're taking it seriously.
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Charity Cohan
Anyone know if EDD can tell if you turned DOWN work? Like if a former employer offered to bring me back part time and I declined because I'm looking for full time work - does EDD find out about that somehow and use it against me?
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Micah Trail
This is a different but important question. Refusing suitable work CAN result in disqualification from UI benefits. Employers can and do report to EDD when a former employee declines to return to work. 'Suitable work' has a specific definition - it generally means work that matches your skills, experience, and previous wages. Declining part-time work when you were full-time might be defensible depending on circumstances. Declining work in your field at similar pay is riskier.
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Charity Cohan
Okay so if my former employer reports that I turned down work, I could get disqualified?
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Micah Trail
Potentially, yes. EDD would send you a notice and give you the opportunity to explain your reasons. You'd want to document why the offered work wasn't suitable - different hours, significantly lower pay, different location, etc. This is a situation where having an EDD agent actually walk you through your specific circumstances would be really helpful.
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Maxwell St. Laurent
Getting through to an agent on this kind of nuanced question is tough but worth it. Claimyr helped me get through for a much simpler situation - for something with potential disqualification consequences I'd definitely want a live agent's guidance. claimyr.com is worth checking out for situations like yours.
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Josef Tearle
the thing that gets me is how EDD can be SO on top of catching people who are working but SO slow to process legitimate claims. My friend waited 11 weeks for her claim to process and not a word from EDD. But apparently the data matching that could catch fraud runs constantly lol. priorities i guess
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Nia Watson
ugh yes the asymmetry is SO frustrating
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Cedric Chung
I mean the fraud detection being automated and the claim processing being manual and understaffed explains it but that doesn't make it less annoying to live through.
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Josef Tearle
i know i know, staffing is a whole thing. still frustrating from the claimant side
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Shelby Bauman
I'm a CPA who has several clients who've been on UI at various times. The FTB cross-reference point raised earlier is really important and I want to reinforce it: when clients come to me for their state tax returns and they received UI, one of the first things I look at is whether their EDD 1099-G matches what they reported on their certifications. Discrepancies are actually quite visible when you look at the numbers side by side. EDD absolutely has the ability to do that same comparison. Report everything accurately.
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Jabari-Jo
AuthorGood to hear this from a professional. My tax situation is simple but still reassuring.
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Marcus Marsh
The 1099-G point is key - EDD issues those to claimants AND reports them to FTB. It's not a secret that EDD knows what they paid you.
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Shelby Bauman
Exactly. And the 1099-G your employer files to report your wages is similarly shared. Both sides of the equation are visible to tax authorities.
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Quinn Herbert
Been lurking on this thread and it's fantastic. One thing I'll add from my own experience being on unemployment last year: call EDD proactively if ANYTHING about your situation changes even slightly. Don't wait for them to catch something and then try to explain. Proactive disclosure is treated so much more favorably than reactive disclosure. I called when my freelance gig went from occasional to semi-regular and the agent actually walked me through exactly how to report it going forward. No issues at all.
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Jabari-Jo
AuthorThis is really good advice. I think I've been scared to call EDD but this makes me feel like I should just reach out with questions before they become problems.
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Quinn Herbert
100%. The agents are not out to get you, most of them are trying to help people navigate a complicated system. The bad outcomes happen when people avoid contact and let small issues become big problems.
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Hailey O'Leary
okay following up on my earlier panic - I did call EDD today and explained the week-reporting mistake. Agent was really nice about it and sent me a form to amend my certifications. Thanks to everyone who said to proactively fix it.
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Jean Claude
That's such good news! Glad it worked out. And yes, proactive = so much better than waiting to be caught.
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Salim Nasir
Final thought from someone who went through EDD adjudication over an employment reporting issue: the system is genuinely set up to catch fraud but it's not a gotcha machine if you're honest. My adjudication was triggered by my new employer reporting me before my actual start date (they jumped the gun on the paperwork). EDD held my payments for 3 weeks while it was investigated. Eventually cleared because my documentation matched my honest reporting. The whole thing was stressful but it worked correctly in the end. Having a record of everything you certified is the ultimate protection.
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Cedric Chung
The early new hire reporting triggering adjudication is such a known issue and it's SO frustrating that it falls on the claimant to fix when the employer made the mistake.
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Salim Nasir
Right? And during adjudication your payments just STOP with no explanation visible in your portal. I was panicking trying to get through to EDD to find out what was happening. Ended up using Claimyr to actually reach an agent and get an explanation - claimyr.com - without it I probably would have waited weeks just not knowing what was wrong. The video demo at https://youtu.be/JmuwXR7HA10 was what convinced me to try it.
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Marcus Marsh
The payments stopping with no portal explanation is genuinely one of the worst parts of the EDD experience. Zero communication about why.
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Jabari-Jo
AuthorThis whole thread has been so helpful. I came in just curious about how detection works and now I feel way more confident about my whole approach to certifying. Thank you everyone.
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