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Malik Robinson

Will my husband pursuing a real estate license affect his EDD benefits?

I'm in a bit of a dilemma here. My husband lost his construction job about 6 weeks ago and has been receiving regular UI benefits (about $450/week). He's been applying for jobs but recently decided he wants to use this time to study for his real estate license. He's thinking of enrolling in an online course that would take about 3 months to complete. My question is - will this affect his unemployment benefits? Does EDD consider studying for a professional license as being "available for work"? He's still job searching and would take a job if offered, but he wants to use his downtime productively. I'm worried we'll get hit with an overpayment notice or he'll lose benefits if he mentions the real estate courses during certification. Has anyone gone through something similar or know EDD's rules on this?

I went through this exact thing last year! Your husband can absolutely study for his real estate license while collecting unemployment, BUT he needs to remain available for full-time work and be actively seeking employment. When he certifies, he should answer "yes" to being available for work (assuming he truly is). The key is that the coursework can't interfere with his ability to accept suitable work. So if he's taking online classes that have flexible hours, he should be fine. Just make sure he's keeping detailed records of his job search activities because EDD might request them at any point. The most important thing is to be truthful on the certification. If EDD finds out later that he wasn't available for work because of school, they'll hit you with an overpayment notice plus penalties. Been there, done that - not fun!

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Thank you so much for sharing your experience! That's really reassuring. The course he's looking at is completely self-paced and online, so he can definitely work around any interviews or job opportunities. He's applying to at least 5 jobs per week and documenting everything. Did EDD ever ask you for verification of your job search efforts while you were studying?

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this is actually wrong info, my cousin got disqualified for taking online classes while on unemployment. EDD considers it not being available for work u should be careful

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That's not entirely accurate. There's a difference between being a full-time student and taking professional development courses. Your cousin may have been enrolled in a program that required specific hours or was considered full-time education. The EDD website specifically states that you can take part-time classes as long as you remain available for work. The real estate courses are usually self-paced and don't interfere with availability.

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omg the EDD rules are so confusing on this!! i think it depends on if its fulltime or part time studying?? when i was on unemployment i took some online courses but didnt tell EDD cause i was scared they would stop my benefits. probably not the best advice lol but nothing bad happened to me 🤷‍♀️

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Please don't advise people to withhold information from EDD! That's a quick way to get hit with overpayment notices and potential fraud penalties. The correct approach is to understand the rules and be honest. You got lucky, but others may not.

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Let me clear this up with factual information directly from EDD guidelines: 1. You CAN take educational or training courses while on UI benefits as long as you remain available for and actively seeking full-time work. 2. Self-paced courses like real estate licensing preparation generally don't interfere with availability for work. 3. There's even a program called the California Training Benefits (CTB) program that allows people to attend school/training full-time while receiving UI benefits, but you must apply and be approved for this specifically. 4. Your husband should answer truthfully on his bi-weekly certification that he is able and available for work (assuming he truly is). 5. He must continue to meet his work search requirements (typically 3 job contacts per week). He does NOT need to report educational pursuits on his certification unless they affect his availability for work or if he's specifically applying for the CTB program. Hope this helps clarify things!

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This is incredibly helpful! Thank you for breaking it down so clearly. I wasn't aware of the California Training Benefits program, but it sounds like we don't need to apply for that since the real estate courses won't affect his availability. He'll definitely continue with his job search requirements and document everything carefully.

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Something nobody's mentioned - if your husband gets a real estate license, he'll technically be self-employed as an independent contractor which WOULD affect his UI benefits. Once he actually starts working as a realtor (even if not making money yet), he needs to report those hours on his certification. Just studying for the license is fine though.

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That's an excellent point I hadn't considered. We're only at the studying stage right now, but I'll make sure he understands that once he gets the license and starts working (even without commissions yet), that needs to be reported. Thank you!

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The EDD system is RIDICULOUS with their arbitrary rules!!! I was taking a 2-hour evening class once a week and somehow they flagged my account for "not being available" even though I was applying to jobs EVERY SINGLE DAY! Had to fight with them for MONTHS to get my benefits back and they still took 2 weeks away as a "penalty" even after I explained everything. The system is designed to find ANY reason to deny hardworking people their benefits!!!

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Wow that sucks! Did u ever get thru to a real person on the phone? Ive been trying to call EDD for 3 days and cant get past the automated system

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my brother in law did this last year he got his mortgage broker license while on unploment an now makes way more $$ than his old job good luck to ur husband!!

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That's really encouraging to hear! My husband is definitely hoping the real estate career will be more stable long-term than construction has been for him. Did your brother-in-law have any issues with EDD during the transition period?

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One more tip based on my experience - have your husband keep a separate log of his study hours vs. job search activities. If EDD ever questions him about his availability, having detailed documentation will save you a lot of headaches. Also, if he gets interviews scheduled during times he planned to study, make sure he prioritizes the interviews and reschedules study time. That demonstrates he's truly available for work, which is what EDD cares about most.

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That's great advice! I'll set up a simple spreadsheet to track everything. Better to be over-prepared than caught off guard if EDD asks questions later. Thank you!

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I'm currently going through something similar! My husband is studying for his contractor's license while on UI benefits. What we learned from calling EDD directly is that they have a "Training Extension Program" that might be worth looking into if the real estate course is through an approved provider. It extends benefits for people in qualifying training programs. The rep told us that as long as you're genuinely available for work and not turning down suitable job offers to study, you should be fine. The key phrase they kept using was "able and available" - if studying doesn't interfere with that, you're good to go. Hope this helps!

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That's really helpful! I didn't know about the Training Extension Program either. Did you guys end up applying for it, or are you just doing the regular UI certification while your husband studies? Also, when you called EDD, how long did it take to get through to someone who could actually answer these questions? I keep hearing horror stories about the wait times but it sounds like you got some good information from them.

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I'm actually a real estate agent now and went through this exact situation about 3 years ago! Your husband should be totally fine as long as he stays truly available for work. I did my pre-licensing course online while collecting UI benefits and had zero issues with EDD. The course was self-paced so I could easily pause studying for interviews or job opportunities. One thing I wish someone had told me - once he passes the state exam and gets his license, he'll need to find a brokerage to hang his license with. Even if he's not actively working yet, some brokerages require you to report those "affiliated" hours to EDD. I learned this the hard way when my broker told me I needed to report being "on call" even though I hadn't made any sales yet. Just something to keep in mind for down the road. The real estate market can be tough starting out, but if he's willing to put in the work, it can definitely be more stable than construction long-term. Best of luck to him!

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This is exactly the kind of insight we need! Thank you for sharing your real-world experience. The "on call" reporting requirement is something I definitely wouldn't have thought about. Did you have to report those hours even if you weren't getting paid or making any sales? And how did EDD handle that transition period when you were technically licensed but not earning anything yet? I want to make sure my husband is prepared for all the steps in this process, not just the studying phase.

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As someone who works in HR and has dealt with unemployment issues, I wanted to add that your husband should also be prepared for potential verification requests from EDD. They sometimes do random audits where they ask for documentation of job search activities, especially if there are any changes in your situation. Since he'll be studying while collecting benefits, I'd recommend he keeps extra detailed records - not just of his job applications, but also of his study schedule to show it's truly flexible around work opportunities. Screenshot his online course progress, keep emails from potential employers, document any networking he does related to both construction and real estate. Also, make sure he understands that if he starts networking heavily in the real estate field (attending open houses, meeting with potential mentors, etc.), these activities could actually count toward his work search requirements if they're genuinely aimed at finding employment opportunities. EDD allows some flexibility in what counts as "job search" as long as it's reasonably related to finding work. The key is always transparency and documentation. Better to have too much paperwork than not enough if they ever question his claim!

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