Will previous EDD penalty affect new claim? Paid everything back last year

So last year I got hit with an overpayment penalty from EDD (nothing fraudulent, just an honest mistake on my certification). I repaid the full amount which was around $6,700 and thought I was done with that nightmare. Now my current construction job has slowed down dramatically and I've already used up all my sick time and vacation days trying to make ends meet. I'm getting maybe 10-12 hours a week when I normally get 40+. My question is: Can I file for unemployment again now, or will that previous penalty automatically disqualify me even though I paid everything back? Has anyone been through this before? I really don't want to go through the application process if I'm just going to get denied because of that old penalty. Our project manager says it might be another 2-3 months before work picks back up to normal levels and I'm getting desperate.

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16 comments

Jamal Carter

•26d

I work as a benefits counselor and can provide some clarity here. The fact that you repaid your overpayment in full is the key factor. When you had the overpayment, did EDD classify it as "fraud" or "non-fraud"? If it was non-fraud (which sounds like your case), and you've paid it back completely, you should be eligible to file a new claim assuming you meet the other requirements: 1. You have sufficient earnings in your base period 2. Your reduced hours are through no fault of your own 3. You're able and available to work 4. You're actively seeking work For construction with reduced hours, make sure you accurately report any part-time earnings during certification. Your weekly benefit amount will be reduced accordingly, but you can still receive partial benefits.

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Jamal Carter

•26d

That's because there are two separate issues: repaying the overpayment amount and serving any penalty weeks assessed. If the overpayment was classified as fraud or willful misrepresentation, EDD typically assesses penalty weeks in addition to requiring repayment. These penalty weeks must be served during future claims - they don't disappear after repayment. However, if the original determination was non-fraud, there typically aren't penalty weeks assessed beyond repayment.

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Liam O'Sullivan

•26d

I had the same nightmare trying to reach EDD! After wasting days trying to get through, I found this service called Claimyr that got me connected to an EDD rep in about 20 minutes instead of spending days redialing. You might want to check them out at claimyr.com if your claim gets stuck in review. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Totally worth it for peace of mind, especially when you need to get something resolved quickly.

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Jamal Carter

•26d

Yes, you can absolutely receive unemployment benefits while working part-time hours! This is called partial unemployment. When you certify each week, you report any work and earnings. EDD calculates your partial benefit by subtracting a portion of your earnings from your weekly benefit amount. As long as you're earning less than your weekly benefit amount, you'll receive some benefit. This is specifically designed to help people whose hours have been significantly reduced, which is exactly the situation described here.

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