What happens if you claim unemployment while working in California EDD?

Wait so they don't just count every dollar I earn against my benefits? I thought if you made any money at all they just stopped paying you completely. That's what my coworker said.

Nope, your coworker had it wrong. The 25% earnings disregard is specifically meant to encourage people to take part-time work without being penalized dollar-for-dollar. A lot of people don't know about this which is why misinformation spreads. As long as your weekly wages don't exceed your WBA, you can still receive partial benefits.

this is correct, went through this exact thing last year when i picked up gig work while on UI

Ok that's somewhat reassuring. I was freaking out thinking I triggered some kind of fraud investigation just for picking up shifts.

Fraud investigations are for people who intentionally hide earnings, not for people who report everything correctly. You're in the clear.

yeah the system flags anything that changes just to double check, happened to me too and it was fine after like 10 days

THIS. I cannot stress this enough. EDD overpayment collections are NO JOKE. They will garnish your tax refunds, put liens on stuff, its a whole nightmare situation that takes years to sort out.

Yeah I'm really glad I didn't listen to my coworker. I reported everything. Still scary waiting to see what happens with the pending status though.

the overpayment thing is serious, my cousin got a notice for like 6 grand and it destroyed her finances for two years

I've literally been trying to call EDD for three days and can't get through to anyone. I'll check this out.

does this actually work?? i've been trying to reach EDD about my own claim for two weeks

It worked for me, I was skeptical too but the connection was real and I got my question answered. Worth trying if you're stuck in phone limbo.

OH. I might have reported this wrong then. I reported what I got paid when the check hit, not when I actually worked. Is that going to cause a problem?

It might trigger a review but it's correctable. Contact EDD and explain that you made an error reporting earnings timing — they can note this on your claim. It's not fraud because it was an honest mistake but you do want to get it corrected.

This is a really important distinction that the EDD website doesn't explain super clearly. Good catch.

Great, more paperwork to look forward to lol

If you get a questionnaire just answer it thoroughly and include any pay stubs or documentation you have. Being overly thorough actually helps your case.

The questionnaires are annoying but they do get resolved. Just respond within the deadline they give you.

If you earn more than your WBA in a given week, you just won't receive benefits for that week — it doesn't affect your ongoing eligibility or your total remaining benefit balance. It's week-by-week. Next week if you earn less you can still claim a partial benefit.

ohhh ok that makes sense, i thought once you earned over it you got kicked off entirely

Yeah this is a very common misconception. Each week stands alone for the earnings calculation.

This is really helpful to hear, thank you. It's reassuring knowing someone went through the same situation and it worked out.

Just don't stop certifying even if the status stays weird. Missing a certification during a pending period is how people accidentally cut their own benefits off.

same experience here, the retroactive payments actually came through faster than I expected

That is not accurate. Working part-time while on unemployment does not end your claim. California EDD has the partial benefits program specifically to accommodate this. You'd only need to reopen your claim if you stopped certifying for more than a certain period.

ok good because i was scared to even take any hours at my old job

Please don't turn down work hours based on that misinformation. Report your earnings, take the work, collect your partial benefit. That's what the system is designed for.

How would I know when I hit that threshold? Is there a number I can look up?

Your benefit year end date is shown on your UI Online account. Also once your weekly gross earnings consistently exceed your weekly benefit amount you're essentially not eligible for that week anyway, so most people notice naturally.

The UI Online portal actually shows your remaining benefit balance so you can track where you are throughout your benefit year.

Not a dumb question at all. Yes, freelance income and self-employment earnings must also be reported. Selling personal belongings typically doesn't count but if you're regularly selling things as a business or income stream it does. EDD defines earnings broadly as wages or remuneration for any service performed.

oh wow ok i did not know that. i've been doing some freelance graphic design while on UI and didn't think to report it because no one is withholding taxes from it

You'll want to report that going forward and potentially contact EDD about past weeks. Unreported freelance income is one of the main sources of overpayment situations.

The 30% penalty on top of repayment is brutal. I've seen people end up owing like $8,000+ for what started as a few hundred dollars in unreported wages.

I'm so glad I didn't listen to my coworker. The short-term convenience is NOT worth that risk.

this is scary honestly, my roommate has been not reporting his gig work i'm gonna tell him to stop

That actually makes a lot of sense financially. Taking the work was probably the right call for me too.

Yeah it's counterintuitive but the 25% earnings disregard means you come out ahead when you work part time vs just sitting on full benefits.

This is exactly why the partial benefits program exists — to incentivize people to transition back to work rather than stay fully on benefits indefinitely.

I really hope I don't end up with an overpayment situation but good to know there's a way to actually talk to someone if I do.

is there any other way to dispute an overpayment or is calling really the only option

You can submit a written appeal by mail but calling is significantly faster for getting clarification on whether an overpayment was calculated correctly. Online message system is also an option but response times are unpredictable.

Standby status has slightly different rules. If you're on standby you're generally not required to do the active job search activities, but you still need to report any earnings from temporary work you do take. The earnings calculation method is the same but there may be conditions on your standby approval that affect how temporary work impacts your status. I'd double check the specifics of your standby approval letter.

ok i'll dig out that letter. i didn't want to turn down the temp work but i also didn't want to accidentally mess up my standby status

Generally speaking taking the temp work while on standby should be fine as long as you report it. EDD prefers claimants accept available work rather than decline it.

Wait I thought the job search requirement was waived once you're working somewhere? Like isn't the point to find a job?

The job search requirement continues until you're back to full-time work. Part-time work doesn't satisfy it. You're still considered unemployed and actively seeking full-time employment in EDD's eyes.

This is correct. The three weekly job search contacts are an ongoing requirement unless specifically waived. Most people are not exempt.

Which question tripped you up? I want to make sure I'm answering correctly.

The one about whether you were 'able and available for full-time work' — I answered no because I was already working part time and thought that meant I wasn't available. But 'able and available' means you're WILLING and ABLE to accept full-time work if offered, not that you're currently sitting at home. I basically told EDD I wasn't willing to work full time which triggered a whole review.

This is a really important clarification. 'Able and available' is about your willingness and capacity to accept full-time employment, not your current working status. Always answer yes to this if you are genuinely willing to work full time.

Thank you for this summary. I'm going to screenshot this and keep it as a reference.

super helpful, bookmarking this thread

this should honestly be pinned, so much accurate info in one place

two weeks of not being able to reach anyone sounds absolutely maddening, glad you found something that worked

It really was, especially because I was worried about the pending status and kept imagining worst-case scenarios. Getting an actual person to confirm things were fine was worth it.

Thanks for mentioning this again — I'm going to try it today since it's been almost a week of trying to get through the regular phone lines.

I didn't realize you could appeal an overpayment. I thought if they said you owed it, you owed it.

Nope, you have full appeal rights. You can request a hearing before an administrative law judge if you believe the overpayment was incorrectly assessed. Gather all your pay stubs and certification confirmations as documentation.

The appeal process is legitimate and EDD does overturn overpayment findings when claimants can demonstrate they reported correctly. It requires paperwork but it's worth doing if you're genuinely right.