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Will EDD penalties affect my SDI benefits after paying off unemployment overpayment?

Hey everyone, I'm in a complicated situation with EDD and could really use some insight. Last year I had an unemployment overpayment of about $13,500 that I just finished repaying through tax intercepts (they took my refunds). Now I'm dealing with a medical condition and need to file for disability (SDI). I'm worried that there might still be penalty weeks or other restrictions on my account even though I've paid back the overpayment in full. Does anyone know if EDD penalties from UI claims carry over to disability claims? Will they withhold my SDI benefits because of my previous UI overpayment history? Really stressed about this since I can't work right now and my savings are almost gone. Thanks for any help!

StellarSurfer

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ui and sdi are diffrent programs so u should be fine. i had overpayment 2 yrs ago and got sdi last summer no problem

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That's a relief to hear! Did you have penalty weeks attached to your overpayment or just the repayment amount? I'm not sure if my situation includes penalty weeks or not.

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Sean Kelly

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UI and SDI are completely separate programs, even though they're both administered by EDD. Overpayment penalties from UI shouldn't affect your SDI claim. Penalty weeks only apply to future unemployment claims, not disability claims. However, if you still had an outstanding balance on your overpayment, they might have deducted that from your SDI payments, but since you mentioned you've paid it off completely through tax intercepts, you should be good to go. Make sure you have documentation showing your overpayment was satisfied in case there's any confusion when you file for SDI.

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Zara Malik

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Is this 100% true though? My cousin had something similar and they STILL took money from his disability for like 3 weeks even though he already paid everything back!! The EDD systems don't talk to each other and it took forever to fix. He had to keep calling and calling and NOBODY would help!!!

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Luca Greco

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If your overpayment was classified as fraud, it's a different situation than if it was a non-fraud overpayment. Fraud overpayments can have more serious consequences that might affect other benefit programs. Did your overpayment notice specify whether it was fraud or non-fraud?

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The notice didn't say anything about fraud, and I never got any kind of interview about fraud or anything like that. It was just a standard overpayment notice saying I reported my earnings incorrectly. So I think it was non-fraud? I don't have the paperwork anymore since this was over a year ago.

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Nia Thompson

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i had this EXACT problem last year!!! SDI is diffrent dept than UI but they still put a hold on my disabilty payments cuz of the old overpayment even tho i paid it all. took WEEKS to fix it. kept getting the stupid recording when i called that said too many callers try again later. so frustrating!!!!!

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Oh no, that's exactly what I'm afraid of! How did you eventually get it resolved? I really can't afford to wait weeks for my benefits.

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Nia Thompson

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To clarify some of the confusion in this thread: 1. Unemployment Insurance (UI) and State Disability Insurance (SDI) are separate programs administered by EDD, but they do share some backend systems. 2. Penalty weeks only apply to future UI claims, not to SDI claims. However, outstanding overpayment balances can potentially affect any EDD benefit. 3. Since you've fully paid your overpayment, you should be eligible for full SDI benefits without reduction. 4. That said, there can sometimes be system issues where your UI repayment isn't properly recorded in the SDI system. If this happens, you'll need to contact EDD directly. 5. I recommend checking your UI Online account to make sure it shows your overpayment as fully satisfied, and print/save that screen as documentation just in case. You should be able to receive your SDI benefits without issue, but having documentation ready will help if there's any confusion in their system.

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Thank you for the detailed explanation! I'll check my UI Online account today to make sure it shows my overpayment as satisfied and save screenshots. I really appreciate everyone's help with this.

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Aisha Hussain

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My husband had an overpayment in 2024 and then filed disability in early 2025 and his first payment was delayed for three weeks while they "reviewed his account" but then everything went through fine after that with no reductions. I think they just check to make sure youve actually paid everything back before they start sending you new money lol

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That's good to know! I can handle a small delay as long as they don't take money from my disability payments or deny me completely. Thanks for sharing your experience!

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