Workers comp settlement while on EDD unemployment - do I stop certifying?

Workers' compensation settlements are typically NOT considered wages or income for UI purposes. You should continue certifying as normal, but when you get to the question about receiving other income, you MUST report the workers' comp settlement for the week you receive it. EDD will then determine if it affects your UI benefits for that week. The key thing is that receiving a settlement doesn't automatically make you ineligible for continued UI - it depends on the nature of the settlement and how EDD classifies it. Just be 100% honest when reporting it.

I had almost this EXACT situation last year! Got a workers comp settlement while on unemployment. What I did was call EDD directly before the settlement arrived to get clear instructions because different types of settlements are treated differently. Some portions might be considered replacement wages (which could reduce your UI) while other portions could be for permanent disability (which typically doesn't affect UI). The agent I spoke with was super helpful and made notes in my file. When I tried calling the regular number it was impossible to get through, but I found this 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 Trust me, having an agent document everything in your file BEFORE you get the money will save you so much hassle!

u need 2 report it on ur certification when u get it!! i didnt report mine n got hit with an overpayment notice. big headache!!

I think it depends on what the settlement is for... if it's for pain and suffering it's different than if it's replacing income. My cousin's settlement didn't affect his unemployment at all but my neighbor had to pay some back. The EDD rules are so confusing sometimes!!

Whatever u do DON'T STOP CERTIFYING!! Even if ur not sure if ur eligible, keep certifying every 2 weeks. U can always cancel or pay back if needed but if u stop certifying and then need to restart its a NIGHTMARE!!!

According to EDD guidelines, here's what you need to know about workers' compensation and unemployment: 1. The settlement doesn't automatically disqualify you from UI benefits 2. You must report the settlement on your certification for the week you receive it 3. For a lump sum settlement, EDD will determine what portion, if any, affects your UI benefits 4. If the settlement is structured properly and doesn't include retroactive wage replacement, you may continue receiving your full UI amount Be prepared that EDD might contact you for more information about the settlement. Keep all your workers' comp documentation readily available. As long as you're still able to work, available for work, and actively seeking work, a workers' comp settlement for a previous injury shouldn't disqualify you.

dont 4get weekly certification asks if ur able 2 work each day! if settlement means ur not able 2 work then u cant say yes to that question

I called my workers comp attorney this morning, and she confirmed the settlement is mostly for permanent disability and medical expenses, with only a small portion for lost wages. She said to definitely report it on my certification when I receive it, but to continue certifying as normal. Going to try getting through to EDD this week for additional clarification. Thanks everyone for the helpful advice!

That's great news that your attorney clarified the breakdown! Since it's mostly permanent disability and medical expenses, you should be in good shape. Just a heads up - when you do get through to EDD, ask them to document in your file that you called proactively about the settlement. That way if any questions come up later during an audit or review, there's a record showing you were being transparent from the start. Also keep a copy of your settlement agreement breakdown handy when you certify - EDD might ask for specifics about which portions are for what purpose.

Just wanted to add my experience - I received a workers comp settlement while on UI about 6 months ago. The key thing that helped me was getting a detailed breakdown from my attorney showing exactly what each portion of the settlement was for. When I reported it on my certification, I had to provide those details to EDD. The permanent disability portion didn't affect my UI at all, but the small wage replacement portion did reduce my benefits for that one certification period. After that week, my benefits went back to normal. Definitely keep all your settlement paperwork organized and be super detailed when reporting it - EDD appreciates transparency and it makes the process much smoother!

I'm going through something similar right now - waiting on a workers comp settlement while collecting UI. From what I've learned reading through all these responses, the most important things seem to be: 1) Don't stop certifying no matter what, 2) Report the settlement when you actually receive it (not before), and 3) Get documentation from your attorney about what each portion of the settlement covers. One thing I'm still unclear on though - if part of the settlement does reduce your UI for that certification period, do you still need to keep doing work search activities that week? I assume yes since you're still technically on your claim, but wanted to check if anyone knows for sure. Thanks to everyone who shared their experiences - this thread has been super helpful for understanding how this all works!

Really appreciate everyone sharing their experiences here! As someone new to this situation, it's reassuring to hear that workers comp settlements don't automatically disqualify you from UI benefits. The key takeaways I'm getting are: 1) Keep certifying no matter what, 2) Be completely transparent and report the settlement when you receive it, 3) Get detailed documentation from your attorney about what each portion covers, and 4) Consider calling EDD proactively to get their guidance documented in your file. One quick question - has anyone here had experience with EDD requesting additional documentation after reporting a settlement? Like do they typically just take your word for it when you report the breakdown, or do they often ask for copies of the actual settlement agreement?

This thread has been incredibly helpful - thank you all for sharing your real experiences! I'm in a somewhat similar situation but mine's a bit different. I'm currently on UI after being laid off from my manufacturing job, and I have an old workers comp case from 2 years ago that's finally moving toward settlement. The injury was to my shoulder and I was able to return to full duty work after treatment, so there shouldn't be any ongoing disability issues. My main concern is timing - my workers comp attorney says the settlement could come through any day now, but it might also take another month or two. Should I give EDD a heads up about the potential settlement before it actually happens, or just wait and report it when I receive the payment? I don't want to complicate things unnecessarily, but I also want to make sure I handle this properly from the start. Also, for those who've been through this - did you find that having an older injury (vs a recent one) made any difference in how EDD treated the settlement? Just wondering if the timing between the injury, return to work, and then later job loss affects anything.

I went through this exact situation about a year ago! Here's what I learned: Don't overthink it - just keep certifying normally and report the settlement when you actually receive it. The biggest mistake people make is stopping their certifications or trying to guess how EDD will handle it beforehand. In my case, I had a back injury settlement from a previous job while collecting UI after a layoff. About 80% of my settlement was for permanent disability and medical costs, which didn't affect my UI at all. The remaining 20% was classified as wage replacement, which reduced my benefits for just that one certification period. After that week, everything went back to normal. Pro tip: When you report it, be very specific about the breakdown. Don't just say "workers comp settlement" - list each component separately (permanent disability: $X, medical expenses: $X, wage replacement: $X, etc.). This makes EDD's job easier and shows you're being transparent. I kept detailed records and never had any follow-up issues. The key is that receiving a settlement doesn't change your work status - you're still able to work, still looking for work, so you're still eligible for UI. The settlement just gets reported as "other income" for that specific week. Good luck!

Wow, this thread is incredibly detailed and helpful! I'm actually going through a similar situation but with a twist - I'm on UI after being laid off from a tech job, and I have a pending workers comp settlement from a repetitive stress injury I got at my previous company (before the one I was just laid off from). The settlement should be coming through in the next few weeks. What's got me a bit worried is that my current UI claim is based on wages from Company B (where I was laid off), but the workers comp settlement is from Company A (where I got injured 3 years ago). I successfully worked at Company B for 2+ years after the injury with no issues, so clearly I'm able to work. Will EDD care that the settlement is from a different employer than the one my UI claim is based on? Or do they just look at the settlement itself and how it's categorized regardless of which company it came from? I'm hoping the fact that I worked successfully for years after the injury at a different company will actually strengthen my case that this is just closing out old business and doesn't affect my current ability to work. Has anyone dealt with a workers comp settlement from a previous employer while on UI from a different employer?

Based on all the great advice in this thread, I wanted to add one more important point that I learned the hard way. When you do report your workers comp settlement, make sure you have the exact date you received the payment, not just the week. EDD sometimes asks for very specific details during their review process, and having precise dates helps avoid any confusion or delays. Also, if your settlement includes any attorney fees that were deducted, report the gross amount you were awarded, not the net amount you received. EDD wants to know the full settlement value to properly categorize it, even though you didn't receive the attorney fee portion. Your lawyer should be able to provide you with a settlement statement that breaks all this down clearly. One last tip - take screenshots or photos of your certification answers when you report the settlement, especially the "other income" section. I've seen people forget exactly what they reported and then panic later when EDD asks for clarification. Having that record helps you stay consistent if questions come up down the road. Good luck with your settlement and job search!

This is such a comprehensive and helpful thread! As someone new to this community who's dealing with a similar situation, I really appreciate everyone sharing their real experiences. I'm currently on UI after being laid off from my retail management job, and I just found out my old workers comp case from a workplace slip and fall 18 months ago is finally settling. Reading through all these responses, it seems like the key principles are: keep certifying no matter what, report the settlement when you actually receive it (with detailed breakdown), and be completely transparent throughout the process. The fact that so many people have successfully navigated this gives me confidence that it's manageable if you follow the right steps. One thing that really stands out is how important it is to get that detailed breakdown from your attorney showing what portion is for permanent disability, medical expenses, vs wage replacement. It sounds like this documentation is crucial for both your initial reporting and any potential follow-up requests from EDD. Thank you all for taking the time to share your experiences - this thread should definitely be bookmarked for anyone dealing with workers comp settlements while on unemployment!