ESD claims $22K overpayment after 2 years - tax garnishment started - need urgent help!

OMG this is so scary!!! I had a similar issue but only for $4,200. Have you tried calling the main ESD number at like 6:59am right before they open? Sometimes that works to get through the queue faster. I'm so sorry this is happening to you!

This sounds like a situation where you need to speak with someone in the overpayment department directly. The regular agents often don't have the authority to help with collections that have already started. Try calling the direct overpayment line at 866-697-4831 rather than the main ESD number. Also, request a formal appeal of the overpayment determination if you haven't already - this is different from a waiver request. An appeal challenges whether the overpayment was correctly determined in the first place. The biweekly vs weekly income reporting issue is actually quite common. Did you keep copies of all your payment stubs from that period? You'll need those for your appeal.

they always do this!! my brother got hit with a 15k bill last year for "misreporting" when he did everything right. the esd system is DESIGNED to trap people and then come after them years later. they know exactly what their doing.

You need to take several steps immediately: 1. File a formal appeal with the Office of Administrative Hearings (OAH) - this is different from a waiver. You only have 30 days from when you received the overpayment notice to do this. If it's been longer, explain in your appeal why you couldn't respond sooner (like their lack of communication). 2. Request a repayment plan immediately to stop collections while you appeal. Even if you don't intend to pay it all, getting on a plan can pause the aggressive collection actions. 3. Contact your state representative's office. They often have constituent services that can help navigate ESD issues. This has worked for many people when direct contact fails. 4. Document everything - all pay stubs, all your attempts to contact them, screenshots of unanswered messages, everything. Regarding the biweekly vs. weekly issue: You needed to calculate and report your weekly earnings by dividing your biweekly amount properly. However, if you were transparent about your work and pay schedule, this should be appealable, especially if the miscalculation wasn't intentional.

have u tried going to the WorkSource office in person? sometimes they can help u get to the right person at ESD. worked for me last summer when i couldnt get anyone on the phone for like 3 weeks

I went through almost the exact same thing in 2024! The biweekly vs weekly reporting issue is actually a known problem with their system. After three months of getting nowhere with regular calls, I found this service called Claimyr (claimyr.com) that got me connected to an actual ESD agent in less than 30 minutes. The agent was able to flag my account for review by a specialist who understood the biweekly pay situation. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Seriously worth it when they're garnishing your wages and destroying your credit. The regular phone system is completely broken - I spent over 40 hours trying to get through before finding this alternative.

this sucks man sorry ur dealing with this garbage

One more important point: Since they've already started garnishing your tax refund, you should immediately file Form 9175 (Petition for Review) with the Office of Administrative Hearings. This is specifically for cases where collection actions have begun. The form should be available on the OAH website, and you can fax it to expedite the process. Also request a "finding of financial hardship" if the repayment would cause you significant financial difficulty. This can sometimes help pause collection activities during review. Keep all documentation of how you reported your earnings during your claim period. If you have emails or screenshots showing you explained your biweekly pay situation to ESD at the time, those will be extremely valuable for your appeal.

I hate to say this but you might need to talk to a lawyer who specializes in unemployment issues. I know it's expensive, but when you're facing $22k in repayments, it might be worth it. The Legal Aid office sometimes offers free consultations for these cases.

If you go the appeal route, make sure to clearly explain how you calculated your weekly income from your biweekly payments. The key issue will be whether you properly reported your work hours and earnings each week, even if the actual payment was biweekly. For example, if you earned $1600 biweekly for 80 hours of work, ESD would expect you to report $800 for each week (40 hours). If you reported the full $1600 only on the weeks you received payment, that would trigger an overpayment determination because it would appear you weren't reporting income for the alternate weeks. The good news is that if this was an honest misunderstanding about reporting requirements rather than intentional fraud, you have a much better chance of getting the overpayment reduced or the penalties waived.