Can I file for new unemployment claim while owing ESD overpayment debt?

Yes, you can absolutely file a new unemployment claim even if you have an outstanding overpayment. ESD will not automatically deny your new claim just because you owe money from a previous overpayment. However, they will likely apply an offset to your new benefits - meaning they'll withhold a percentage (usually 50%) of your weekly benefit amount to apply toward your overpayment balance. The good news is you'll still receive the remaining portion of your benefits while gradually paying down your debt. Since you've already been making regular payments, that shows good faith on your part.

I was in a similar situation back in December. Had about $1800 left on an overpayment from when they said I didnt report some income right. They took 50% of my new benefits each week until it was paid off. It sucked getting less money but at least I was getting something and it helped pay that debt down faster.

FILE ASAP!!! dont let the overpayment stop you from getting what ur entitled to! i waited almost a month before filing when i lost my job last year because i was scared about owing them money and i lost out on like $1600 i couldve gotten because claims arent backdated unless u have a really good reason. dont make my mistake!!

I want to clarify something important here - while you can file with an existing overpayment, if your overpayment was due to fraud (not just a mistake but intentional misrepresentation), there could be additional consequences. From what you described, yours sounds like an unintentional reporting error, which is handled differently. Also, make sure you're completely accurate on your new claim to avoid creating another overpayment situation. Double-check all income reporting and job separation details.

Has anyone actually tried calling ESD directly to ask about this? I've been trying to get through to them about a similar situation for DAYS and can't get a human on the phone. Just endless hold times and then disconnects. So frustrating!!! Their system is broken!!

My cousin had this exact same problem and he said they took 50% of his benefits each week. But then he called and explained his situation (single dad, etc) and they reduced it to 25% after he filled out some hardship form. So you might be able to get it lowered if you can actually reach someone lol.

One other important thing to remember is that you still need to do your 3 job search activities each week, even while the overpayment is being sorted out. I've seen people get denied because they thought they could skip this requirement while dealing with other ESD issues. Keep detailed records of all your job search activities!

Just to follow up on your question - yes, virtual job fairs still count as a job search activity as of 2025. Also, I want to clarify about the offset process: while 50% is standard, ESD does have an official financial hardship application that can reduce the offset percentage if you can demonstrate that the 50% offset would cause significant financial hardship. You'll need to provide documentation of your expenses versus income. The form is available in your eServices account under the "Upload a Document" section.