Can I qualify for ESD benefits with a COVID overpayment debt? How much gets deducted?

Yes, you CAN still qualify for unemployment even with an outstanding overpayment! They don't deny you benefits just because you owe money from before. But they will take a portion of your weekly benefit to recover the overpayment. When I had this situation last year, they took 50% of my weekly benefit amount to apply toward my old debt. So if your weekly benefit would be $800, you'd get $400 and $400 would go toward your overpayment. Definitely file your claim right away - don't wait because you're worried about the overpayment issue.

thats not always true!!!! when i had an overpayment in 2021 they took 100% until it was paid off and i had to live off credit cards for 2 months. depends if its considered fraud or non-fraud overpayment. if they think u lied about something they take it ALL

You need to call ESD directly and ask about your specific situation. The percentage they take depends on several factors: 1. Whether your overpayment is classified as fraud or non-fraud 2. The age of the overpayment 3. Your financial hardship situation For non-fraud overpayments, they typically take 50% like someone mentioned, but you can request a lower percentage (as low as 25%) if you can demonstrate financial hardship. For fraud overpayments, they can take 100%. Also important - you should check if you qualify for overpayment waiver since it was from COVID era. They've been more flexible with COVID-era overpayments if you can show it wasn't your fault. You need to fill out the "Overpayment Waiver Application" form on the ESD website.

I had the EXACT same thing happen last year! COVID overpayment I didn't know about until way later. I tried calling ESD for WEEKS and kept getting disconnected or waiting for hours. Finally I found this service called Claimyr that got me through to an ESD agent in about 30 minutes instead of spending days trying. It was honestly worth it because the agent set up a payment plan where they only took 25% of my benefits because I explained my hardship situation. Check out their site at claimyr.com or watch how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Good luck!

I HATE how they handle overpayments!!! During COVID they were telling everyone to apply, rules changing every week, then years later they're like "SURPRISE you owe us thousands!" It's ridiculous! The whole system is designed to confuse people then punish them for being confused. Anyway... one thing NO ONE mentioned yet is that you only have 30 days from when they sent the overpayment notice to request a waiver or appeal! If it's been longer than that, you might be out of luck unless you can prove you never received the original notice. Check the date on those letters you mentioned getting "a few months ago".

just wanted 2 say u can still try appealing even if its past deadline. my brother was late by like 2 months and wrote a letter explaining why he missed deadline (he moved) and they still let him appeal. worth a shot

I'm an employment attorney who works with ESD cases frequently. Here's accurate information about your situation: 1. Yes, you can file a new claim despite having an overpayment balance. 2. The standard recoupment rate for non-fraud overpayments is 50% of your weekly benefit amount. For fraud-classified overpayments, it's 100%. 3. You can request a reduced recoupment rate (down to 25%) by demonstrating financial hardship. This requires submitting the "Request for Reduced Overpayment Recovery Rate" form with documentation of your expenses. 4. While the standard appeal deadline is 30 days, you can file a late appeal by demonstrating "good cause" for the delay. Having not understood the significance of the notices could potentially qualify as good cause. 5. For COVID-era overpayments specifically, ESD implemented special waiver considerations under certain conditions. These apply even beyond the standard appeal timeframe. I recommend immediately filing your new claim while simultaneously preparing a hardship reduction request AND a waiver application with a good cause explanation for the delay.

For your good cause explanation, focus on these elements: 1. Specify that you were unaware of the overpayment until recently receiving notices 2. Explain any confusion about changing COVID regulations at the time 3. Document if you moved or had any issues receiving mail 4. Mention any financial or personal hardships during the COVID period 5. State clearly that you would have responded promptly had you understood the significance Be factual rather than emotional, but do highlight any genuine hardships. Include dates whenever possible. Submit this along with your waiver application.

Just wanted to follow up - were you able to file your new claim yet? The sooner you start that process, the better, even while you're working on the overpayment situation. Remember that your claim effective date is based on when you apply, not when you got laid off, so every week you wait is potentially lost benefits.