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Will EDD notify my new part-time employer about my active unemployment claim?

I just got through a really stressful situation - was let go from my full-time retail management position back in October. Had my eligibility interview with EDD a few weeks later and thankfully was approved for benefits. The thing is, I've been serving penalty weeks (apparently had some unreported income from a side gig last year that caught up with me). I'm finally about to start receiving actual payments by late November. But here's my current situation - I just landed a part-time job at a small local business (about 25 hours/week) and start this Wednesday. I'm nervous about whether EDD automatically sends any kind of notification to my new employer about my active unemployment claim with my previous employer. I don't want my new boss thinking I'm trying to double-dip or hide something, but also don't want to bring up unnecessary baggage if it's not even an issue. Do I need to tell my new employer about my EDD claim? Will they find out anyway? I'm planning to report my new income properly when I certify, but just not sure about the employer notification part. Anyone dealt with this before?

EDD absolutely WILL notify your new employer!! They sent paperwork to mine when I was working part-time while on benefits and it caused so many problems!!! My boss thought I was lying about my hours and almost fired me. The EDD system is designed to TRAP people!!!!

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Amara Okonkwo

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Oh no, seriously?? That's exactly what I'm afraid of! Did you have to explain the whole situation to your boss? This is going to be so awkward on my first week...

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The previous commenter is not entirely correct. EDD doesn't automatically notify your new employer just because you have an open claim. However, when your new employer reports your wages to the state (quarterly), EDD's system will cross-reference that with your certifications to ensure they match. What you should do: 1. Report your part-time work and earnings accurately when you certify every two weeks 2. Keep track of your hours and pay for your own records 3. Understand that you can still receive partial unemployment benefits if your part-time earnings are less than your weekly benefit amount You don't necessarily need to inform your new employer about your unemployment claim unless there's a specific reason to do so. Just make sure you're reporting everything correctly on your certifications.

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Amara Okonkwo

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Thank you, this is really helpful! So as long as I'm honest about my earnings when I certify, I shouldn't have issues? That makes me feel better about starting this new job.

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Dylan Hughes

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wat are penalty weeks? never heard of that b4

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Penalty weeks are periods where you qualify for benefits but don't receive payment as a penalty for a previous issue. Usually happens when EDD determines there was unreported income or some misrepresentation on a claim. The claimant has to serve these weeks (certify but not get paid) before they can start receiving benefits again.

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NightOwl42

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I was in almost the same situation last year! EDD doesn't notify your new employer about your claim status - that would actually be a privacy issue. They might contact your new employer to verify your employment if they have questions about your reported earnings, but they don't just randomly tell them "hey this person is on unemployment." You definitely need to report your part-time earnings each time you certify though. They'll reduce your weekly benefit based on what you earn (I think it's something like they subtract 75% of your earnings from your benefit amount). What's the deal with the penalty weeks though? I've never heard of that.

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Amara Okonkwo

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Thanks! The penalty weeks are because I had a side gig last year that I didn't fully report on some certifications (I honestly didn't understand how to report it correctly). They audited me and instead of making me pay back money, they gave me penalty weeks where I have to certify but don't get paid.

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I tried calling EDD 32 times last month to ask a similar question and couldn't get through at all. Ended up using a service called Claimyr (claimyr.com) that got me connected to an EDD rep in about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The rep told me that EDD doesn't proactively notify new employers about your unemployment status. They only contact employers to verify information you've provided. As long as you report your new job and earnings accurately when you certify, you should be fine. The rep also explained that it's actually illegal for employers to discriminate against you for having an unemployment claim.

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Amara Okonkwo

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Thanks for the tip about Claimyr! I might need that if I run into issues with my claim. And good to know about the discrimination part - that makes me feel better about the whole situation.

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Dmitry Ivanov

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When I worked in HR, we occasionally got notices from EDD about new hires who were collecting unemployment, but it wasn't automatic - it usually happened if there was a discrepancy or audit. The main thing is that you need to report your new part-time income accurately when you certify for benefits. Since you'll be working part-time, you may still qualify for partial unemployment depending on how much you earn compared to your weekly benefit amount. Regarding whether to tell your new employer - that's really a personal choice. There's no requirement to disclose this information, and many would argue it's none of their business. However, if you work in a small company where the owner/manager directly handles payroll reporting, they might eventually notice the EDD verification requests if they come through.

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Dylan Hughes

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so basicly its better to just keep ur mouth shut and not say anything unless they ask right

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This happened to my cousin and her new boss got really mad about it! Said she was trying to cheat the system! Be careful!!!!

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Dmitry Ivanov

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That's unfortunate, but legally your cousin's boss shouldn't have been upset about this. Collecting partial unemployment while working part-time is completely legitimate if your earnings are below your weekly benefit amount. Many employers don't fully understand how unemployment works, which can lead to these misunderstandings.

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Ava Thompson

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I think your spending to much time worrying about this. Just take the new job and forget about EDD. Why even bother reporting the part time work? Its not like there going to know unless someone tells them lol

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This is absolutely incorrect and dangerous advice. Not reporting work and earnings while collecting unemployment is fraud and can result in serious consequences including penalties, having to repay benefits with interest, and potentially even criminal charges in severe cases. All earnings must be reported when certifying - EDD has multiple systems to detect unreported income.

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Dmitry Ivanov

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One more thing regarding your penalty weeks - make sure you continue certifying for benefits during these weeks even though you won't be paid. Missing certifications during penalty weeks can cause your claim to become inactive. And once you start your new job, you'll need to report those earnings starting with your first day of work (not your first paycheck).

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Amara Okonkwo

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I've been certifying every two weeks even during the penalty period, but thanks for mentioning the first day vs. first paycheck thing - I probably would have messed that up!

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NightOwl42

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Just to give you some peace of mind - I've been working part-time at a brewery for about 8 months while receiving partial unemployment, and my boss has never mentioned getting any communications from EDD about my claim. I've been reporting all my earnings correctly each certification period. So in my experience, no, your new employer won't be notified about your claim status.

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Amara Okonkwo

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That's really reassuring to hear, thank you! I'll make sure to report everything correctly and hopefully it'll be smooth sailing from here.

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