Can I still get paid on my weekly ESD claim with an existing overpayment balance?
I just found out I have an overpayment from ESD from when I was collecting unemployment last winter. The letter says I owe $2,850 because they determined I wasn't available for work during two weeks when I was actually on a family emergency trip (my fault, I know I should have reported it). I'm unemployed again and REALLY need the money right now. If I file my weekly claim, will they pay me or just keep everything to pay down what I owe them? Has anyone dealt with this situation before? I'm worried about paying rent next month if I don't get something coming in soon.
20 comments
Rhett Bowman
Yes you can keep filing but they'll probably take most of it to pay back what you owe. When I had an overpayment last year they took 50% of each payment until it was paid off. You should call and ask about a payment plan too, sometimes they can lower the amount they take each week.
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Danielle Campbell
•Thanks for responding! Do you remember how you arranged the payment plan? Did you have to talk to someone specific at ESD or is there a form somewhere on the website?
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Abigail Patel
To give you the correct information: Yes, you can still file weekly claims with an overpayment on your account. According to ESD rules, they will withhold 50% of your weekly benefit amount to recover the overpayment, unless you have a fraud overpayment (which doesn't sound like your case). So if your weekly benefit amount is $500, you would receive $250 each week while the other $250 goes toward your overpayment balance. If the 50% recovery rate would cause you significant financial hardship, you can request a reduction in the recovery rate. You'll need to call ESD and ask about the "Overpayment Recovery Waiver" process and be prepared to provide financial documentation showing hardship.
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Danielle Campbell
•Oh thank goodness! At least I'll get something each week. I'll definitely ask about that waiver process since 50% is still going to make things really tight financially. Thanks for the detailed explanation!
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Daniel White
thats not always true tho. my roommate had an overpayment and they took 100% until it was paid off. depends if they marked it as fraud or not. did ur letter say anything about fraud or misrepresentation??
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Danielle Campbell
•I just double-checked the letter and it doesn't specifically say fraud, just "overpayment due to unreported unavailability for work" so I hope that means it's not considered fraud. I honestly didn't realize I needed to report the family emergency since I was still job searching online during that time.
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Nolan Carter
The previous responses have good information. If your overpayment is non-fraud (doesn't specifically say fraud or willful misrepresentation on the letter), then ESD typically takes 50% of your benefits until the overpayment is recovered. If it's classified as fraud, they can take 100%. If this creates a financial hardship, you have options: 1. Request a hardship reduction in the recovery rate (can go as low as 10% in extreme cases) 2. Request a payment plan for the overpayment 3. In some cases, request a waiver if repayment would be "against equity and good conscience" Make sure to continue filing your weekly claims while you address this issue. Not filing could affect your eligibility for current benefits.
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Danielle Campbell
•Thank you so much for explaining this! I'll definitely keep filing. Do you know what documentation I would need to prove hardship for the reduction request? I've got medical bills and my rent just went up too.
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Nolan Carter
For a hardship reduction, you'll typically need to provide: 1. Your monthly income and expenses (rent/mortgage, utilities, food, medical, etc.) 2. Recent bank statements 3. Documentation of your essential expenses (lease agreement, medical bills, etc.) 4. Any special circumstances (medical conditions, dependents, etc.) Be prepared to explain why the standard 50% recovery rate would cause significant hardship. You'll need to submit this information in writing, usually with a form ESD provides after you request the hardship consideration.
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Natalia Stone
•Good luck getting through to anyone at ESD though. I spent two weeks trying to call about my overpayment and kept getting disconnected or waiting for hours. Finally used a service called Claimyr (claimyr.com) that got me in the call queue without the endless redials. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Saved me days of frustration and I was able to set up a payment plan where they only take 15% of my weekly benefit.
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Tasia Synder
THEY WILL TAKE ALL YOUR MONEY UNTIL ITS PAID!!!!! Happened to me and I was HOMELESS for 3 months!!! ESD doesn't care about people!!!!
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Abigail Patel
•That's not accurate in most cases. ESD has specific rules about recovery rates (50% for non-fraud, 100% for fraud). They also have hardship provisions and payment plans available. Your situation may have involved a fraud determination or other specific circumstances, but it's important not to panic people with incorrect blanket statements.
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Selena Bautista
When i had an overpayment i called them and explained my situation and they were actually really understanding. I was only paying like $50 a week toward the overpayment. Def worth calling to explain your financial situation.
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Danielle Campbell
•That's really good to hear! I'm hoping they'll work with me too. Glad you had a positive experience with them.
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Natalia Stone
I'm actually dealing with the EXACT same thing right now! My overpayment was $3,200 from last year when I accidentally reported my hours wrong for a part-time job. I just restarted unemployment last month and they're taking exactly 50% each week. I called and asked about a hardship reduction and they sent me a form to fill out. Still waiting to hear back but the agent said they can reduce it to as low as 10% if you show significant hardship. Definitely worth asking!
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Danielle Campbell
•Wow, are we living the same life? 😅 Thanks for sharing your experience! Can I ask how long ago you submitted the hardship form? Just wondering how long the wait might be.
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Natalia Stone
I submitted the form about 10 days ago. The ESD agent told me it could take up to 30 days for a decision, but in the meantime they're still taking the full 50%. Hoping to hear something soon because it's really tight financially right now!
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Danielle Campbell
•Please let me know when you hear back! I'll be submitting my form as soon as I can get through to them. Fingers crossed for both of us. 🤞
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Rhett Bowman
also make sure ur still doing all ur job search activities every week even while this overpayment thing is happening. my cousin forgot to do his job searches for two weeks while dealing with an overpayment issue and they disqualified him completely, had to appeal and everything it was a huge mess
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Danielle Campbell
•That's a really good reminder, thank you! I've been doing my 3 job search activities each week and documenting everything carefully. Definitely don't want any more issues!
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