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ESD claims I owe $40,000 - received appeal hearing notice - lawyer needed?

I'm freaking out right now. Just opened my mail to find paperwork for an appeal hearing date with ESD. According to them, I somehow owe around $40,000 in overpaid benefits! I have absolutely no idea how they came up with this amount - there's no breakdown or explanation in the notice. Has anyone dealt with something like this before? Do I need to hire a lawyer for the hearing? I'm a single parent and there's no way I can pay that kind of money back. The hearing is scheduled for just three weeks from now and I'm completely overwhelmed. Any advice would be greatly appreciated!

Henry Delgado

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Yes, you definitely need to request all documentation on how they calculated this amount ASAP. I had an overpayment issue (much smaller - about $3,800) last year. Call ESD immediately and request a detailed breakdown of the alleged overpayment. Ask specifically for what weeks they're claiming were overpaid and why. You have the right to this information before your hearing. As for a lawyer - it depends on your situation. The Office of Administrative Hearings doesn't require one, and many people represent themselves. However, with an amount that large, it might be worth getting at least a consultation with someone who specializes in unemployment law.

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Gianni Serpent

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Thank you for this advice. I've been trying to call ESD for two days with no luck - just keep getting disconnected after waiting for over an hour. Do you know if there's any way to request this documentation online through my eServices account?

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Olivia Kay

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I had something similar happen (though my amount was $12k) and it turned out they had determined I wasn't eligible for the entire claim period. Do you know WHY they're saying you owe this money? The notice should have some explanation code or disqualification reason. Before your hearing, you absolutely need to: 1. Gather ALL documentation related to your claim (approval notices, weekly claim certifications, any communications from ESD) 2. Write a timeline of your employment/unemployment 3. Prepare your case for why you believe you were eligible You CAN win these appeals - I had my overpayment reduced by 80% by showing documentation that contradicted their findings.

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Gianni Serpent

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The notice just says "Overpayment due to earnings not reported" but I ALWAYS reported my earnings accurately! I did work part-time for a few months while claiming, but I reported every single dollar. I'm definitely going to gather all my pay stubs and weekly claim printouts.

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Joshua Hellan

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omg thats so much money!!!! i got a $2300 overpayment last month and thought THAT was bad. did u maybe forget to report some work or something? that happened to my cousin and he had to pay everything back

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Jibriel Kohn

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Not reporting work would be fraud tho, and they'd probably add penalties on top of the overpayment. Sounds more like a calculation error or misunderstanding to me. $40k is CRAZY high!

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Edison Estevez

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The ESD system is COMPLETELY BROKEN. They're doing this to thousands of people right now - sending massive overpayment notices with zero explanation and expecting people to figure it out themselves. It's CRIMINAL! I had to fight for 7 months to fix an "overpayment" that was THEIR ERROR in the first place. They told me I didn't submit job search activities when I DID and had proof!!! Don't let them intimidate you. Document EVERYTHING. Record every phone call (WA is a two-party consent state so tell them you're recording). This is a tactic to scare people into not appealing. FIGHT IT!!!!

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Joshua Hellan

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this is so scary! can they like garnish ur wages or something if u lose the appeal??

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Edison Estevez

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YES they absolutely can and WILL garnish wages, take tax refunds, and even put liens on property! That's why you HAVE to fight these ridiculous claims. The system is DESIGNED to make people give up!!!

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I was in almost the exact same situation in January - $35k overpayment notice out of nowhere. I spent 3 weeks trying to reach someone at ESD with no success - constant busy signals, disconnections after waiting on hold for hours, and no responses to my eServices messages. Finally found a service called Claimyr that got me through to an ESD agent in about 20 minutes. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 The agent was able to explain exactly what happened with my claim and what documentation I needed for my appeal. Turns out ESD had incorrectly calculated my base year wages. I won my appeal and had the entire overpayment dismissed. Don't panic until you have the full story!

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Gianni Serpent

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Thank you for this! I'm definitely going to check out that service. I absolutely need to talk to someone before my hearing and nothing else seems to be working. Did you end up getting a lawyer for your appeal hearing?

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I didn't need a lawyer in the end. Once I understood exactly why they thought I was overpaid, I was able to gather the right documentation to prove they were wrong. The hearing judge was actually very fair and listened to my evidence. If your situation is complicated though, it might be worth at least consulting with a lawyer who specializes in unemployment cases.

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James Johnson

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So I actually work at a legal aid office (not a lawyer tho) and we see these cases ALL THE TIME. Here's what you need to know: 1) You should contact your local legal aid office RIGHT AWAY - they often have free help for unemployment cases 2) Don't miss the appeal hearing no matter what!!! 3) In WA state, you can apply for a waiver of the overpayment if paying it back would cause financial hardship Also the calculation of $40k seems really high unless you were claiming for a really long time or getting the maximum benefit amount. Def something fishy there.

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Gianni Serpent

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Thank you - I had no idea about legal aid potentially being free! I'll look into that tomorrow. And yes, the amount seems ridiculously high. I only collected unemployment for about 8 months in 2024 and my weekly benefit was $625.

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James Johnson

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Yeah that math doesn't add up at all. Even at $625/week for 8 months, that would be around $20-22k total in benefits, so them claiming $40k doesn't make sense. Definitely sounds like there's either a system error or they've doubled the amount somehow. Legal aid should definitely be able to help with this kind of clear discrepancy.

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Jibriel Kohn

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I went thru this whole overpayment thing back in January. Whatever you do dont ignore it hoping it'll go away!! My friend did that and they started taking money from his paychecks. Make sure you attend the hearing even if you dont have all your documents yet. The judge might give you more time to get everything together if you ask nicely.

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Olivia Kay

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One thing to consider: if the overpayment notice says it's due to unreported earnings, get an official earnings record from every employer you had during your claim period. You can also request your official wage records from ESD themselves as evidence. If there's a discrepancy between what you reported and what employers reported to ESD, that could explain the issue. Also, check whether they're claiming this was a fraudulent overpayment or non-fraudulent. The difference is important for penalties and repayment options. If they're alleging fraud, you'll want to take that very seriously.

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Gianni Serpent

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It doesn't specifically say fraud, thankfully. But I'm definitely worried they might try to claim that. I'll request records from my employers right away. Thank you for this advice.

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Gianni Serpent

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Update: I was finally able to get through to ESD this morning. Turns out they somehow duplicated my entire claim history and counted it TWICE, plus they're claiming I didn't report income from a job I never even had! The agent said it looks like a system error combined with possible identity mix-up with someone with a similar name. She's escalating it to a supervisor but said I should still prepare for the hearing just in case it's not resolved by then. Thank you all for your help and advice!

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Henry Delgado

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That's actually great news! Make sure you get the agent's ID number or name, and ask them to note all of this in your file. Request that they send you written confirmation of what they found. Having documentation of this conversation could be extremely helpful at your hearing if it's not resolved beforehand.

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Edison Estevez

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CLASSIC ESD incompetence! Get EVERYTHING in writing. Don't trust them to fix it without you following up constantly. They "escalated" my case THREE TIMES and nothing happened until I contacted my state representative. Consider doing that too!

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