Does unemployment have to be paid back in Washington - confused about overpayment rules

Your neighbor is completely wrong. Regular unemployment insurance (UI) benefits in Washington are NOT loans and do NOT have to be paid back under normal circumstances. You've paid into the unemployment insurance system through payroll taxes while you were working, so these benefits are something you've already contributed to. The only time you'd have to pay back unemployment is if Washington ESD determines you weren't eligible for some of the benefits you received (called an overpayment situation).

I think your neighbor might be confusing unemployment with pandemic benefits like PPP loans or something. Regular UI benefits are absolutely not loans. However, if you do get an overpayment notice from Washington ESD, that's when you'd have to pay money back. This usually happens if you worked but didn't report it properly, or if there was some other eligibility issue.

I had a similar panic when I first started collecting unemployment! Called Washington ESD like 20 times trying to get through to ask this exact question. Finally used a service called Claimyr (claimyr.com) that helped me get connected to an actual agent quickly. The agent confirmed that no, regular UI benefits don't have to be paid back. There's even a video demo of how it works: https://youtu.be/7DieNd3C7zQ. Really saved my sanity during that stressful time.

Your neighbor probably has no idea what they're talking about lol. I've collected unemployment twice in the past 5 years and never had to pay anything back. The whole point is that it's insurance you and your employer already paid for through taxes.

The ONLY time you have to pay unemployment back is if Washington ESD sends you an overpayment notice. This happens when they determine you received benefits you weren't entitled to. For example, if you were working part-time but didn't report those wages, or if you weren't actually available for work during weeks you claimed benefits. But regular UI benefits that you're legitimately entitled to? Never have to be repaid.

Just to add some specific details - Washington ESD sends overpayment notices when there's been an eligibility issue discovered. The notice will include the overpayment amount, the reason (fraud, non-fraud, etc.), and your appeal rights. You typically have 30 days to appeal if you disagree. But again, this only happens if there was an actual problem with your eligibility, not just because you collected benefits.

Some people think unemployment is like a government loan or something but it's really not. It's insurance. You pay premiums (through payroll taxes) while working, and then you can collect benefits when you're unemployed. Just like car insurance - you pay premiums and then use the coverage when needed. You don't have to pay your car insurance company back when they cover an accident claim.

I was in the same boat as you - someone told me I'd have to pay it all back and I freaked out. Spent weeks barely sleeping over it. Finally got through to a Washington ESD rep who explained that no, benefits don't have to be repaid unless there's been an overpayment determination. I actually used that Claimyr thing someone mentioned earlier after trying to call for days unsuccessfully.

The confusion might come from the fact that some pandemic-era programs like PPP loans did have to be paid back if certain conditions weren't met. But regular state unemployment insurance has never worked that way. It's a safety net program that you contribute to while working.

Quick question - I'm on standby status through my union. Do those benefits have to be paid back? I assume it's the same rule but wanted to double check since standby is a bit different.

ugh the Washington ESD system is so confusing, no wonder people think weird things about it. I spent 3 hours on their website trying to figure out basic stuff when I first filed. At least the actual benefits part is straightforward - you don't owe anything back under normal circumstances.

Just wanted to add that if you ever do get an overpayment notice, don't panic. Like others said, you can appeal it, and sometimes they'll set up payment plans if you do owe money. But for your situation, OP, you should be totally fine as long as you're reporting everything accurately on your weekly claims.

Pro tip: keep good records of everything - your job search activities, any work you do, wages you report, etc. That way if any questions ever come up, you have documentation to back up what you reported to Washington ESD.

Your neighbor might be thinking of workers comp or disability benefits? Some of those programs have different rules about repayment in certain situations. But regular unemployment insurance definitely doesn't work like a loan.

I had this same exact fear when I first started collecting! Someone at work told me the same thing and I was terrified. Turns out they were completely wrong. Been collecting for 12 weeks now with no issues. Just follow the rules and you're good.

Final thought - if you're ever unsure about something unemployment-related, the Washington ESD website has a lot of good information, or you can try calling them. I know getting through can be tough, but some people have had luck with services like Claimyr that help you actually reach an agent without the endless hold times.

I'm so glad you asked this question here instead of just panicking! This is actually a really common misconception that causes unnecessary stress for people. To be absolutely clear: regular unemployment insurance benefits in Washington State are NOT loans and do NOT have to be paid back under normal circumstances. You've already "paid" for these benefits through the unemployment insurance taxes that were deducted from your paychecks while you were working. Think of it like any other insurance - you pay premiums (through payroll taxes), and when you need coverage (unemployment), you receive benefits. The only exception is if Washington ESD determines you received benefits you weren't entitled to (called an overpayment), but that only happens if there was an eligibility issue, fraud, or reporting error. As long as you're honestly reporting your work search activities, any part-time work, and following all the requirements, you have nothing to worry about. Your neighbor was definitely misinformed - maybe they were thinking of pandemic loans like PPP or confused unemployment with some other program. Keep doing what you're doing and don't lose sleep over this!

I just wanted to add another perspective since I work in HR and deal with unemployment claims regularly. Your neighbor is absolutely wrong - regular UI benefits are not loans and never have to be repaid under normal circumstances. What might be confusing people is that during the pandemic, there were so many different programs (PPP loans, EIDL loans, etc.) that DID have repayment requirements or forgiveness conditions. But regular state unemployment insurance has always been exactly that - insurance that you and your employer pay into while you're working. The Washington ESD system is funded by employer taxes and employee contributions, so when you collect benefits, you're simply using the insurance you've already paid for. The only time repayment comes up is in overpayment situations, which typically occur when someone works but doesn't report it, provides false information, or isn't actually available for work when they claim to be. As long as you're being honest on your weekly claims and following the job search requirements, you have absolutely nothing to worry about. Don't let misinformation cause you unnecessary stress during an already difficult time!