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ESD demanding repayment after quitting due to 25% hour reduction - employer says I left for 'personal reasons'

I'm in a mess with ESD and need advice ASAP. My employer cut my hours/salary by 25% back in August 2025 (gave me an official memo stating they couldn't support a full-time position anymore). I stuck it out hoping things would improve but by December nothing changed, so I resigned with a month's notice. In my resignation letter, I didn't specify any reason for leaving, and yeah, I probably mentioned to coworkers that I might travel or pursue personal interests. I applied for UI benefits and submitted the memo about reduced hours to ESD. I've been receiving benefits for about 6 weeks, but today I got a notice saying I need to repay EVERYTHING because my employer told ESD I quit for "personal reasons" not because of reduced hours. Does Washington state require that I explicitly tell my employer the exact reason I'm leaving? I thought providing ESD with documentation of the hour reduction would be enough. Does my employer's statement that I left for personal reasons automatically disqualify me even with proof of substantial hour reduction? I'm freaking out about having to repay thousands in benefits I've already used for rent and bills!

Amina Diop

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You're in a tricky spot, but there might be a way forward. In Washington, you generally need to establish "good cause" for voluntarily leaving employment to qualify for UI. A substantial reduction in hours (25% definitely qualifies) is considered good cause, but the issue here is that your employer's statement contradicts your claim. ESD typically gives more weight to what the employer says about the separation reason. Since you didn't explicitly cite the reduced hours when you resigned, and may have mentioned personal reasons to colleagues, the employer had a basis for reporting it that way. You should appeal this decision immediately! The fact that you have the memo documenting the hour reduction is extremely valuable evidence. In your appeal, emphasize that the hour reduction was the actual reason, regardless of what casual conversations you had with coworkers.

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Paolo Romano

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Thank you! Do I need to file the appeal online or can I do it over the phone? I'm worried about missing the deadline.

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u should totally appeal!! my cousin had something similer happen when her boss cut her pay by like 20% and she quit. ESD first denied her but she fought it and won. you got that memo which is WAY better than what my cousin had lol

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Paolo Romano

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That's encouraging to hear! Did your cousin have to hire a lawyer or did she appeal on her own?

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You need to file a formal appeal within 30 days of receiving the overpayment notice. You can file it online through your eServices account or by mail. Include a copy of that memo showing your hours were reduced by 25%. Here's where your situation gets complicated: While a substantial reduction in hours IS considered good cause to quit in Washington, ESD typically expects you to have communicated this reason to your employer before quitting. The fact that you didn't specifically cite the reduced hours in your resignation letter and may have mentioned pursuing personal interests to coworkers has created this problem. In your appeal, you'll need to explain why you didn't explicitly state the hour reduction as your reason for quitting in your resignation letter. Be honest but emphasize that the primary catalyst was indeed the substantial reduction in hours, as evidenced by the memo. Also request a hearing with an Administrative Law Judge where you can present your case in more detail.

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Javier Torres

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100% this! I work in HR and see this ALL THE TIME! People quit for one reason but tell their boss something else to "keep it professional" or whatever. Then when they apply for UI, the employer reports what the person SAID not what actually happened. OP needs to be super clear in the appeal that the hour reduction was the real reason, and the memo proves it existed!

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Emma Wilson

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If u cant get through to esd to ask questions about ur appeal try claimyr.com to connect with an esd agent. worked for me when i had to appeal a disqualification. they have a video that shows how it works https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 its so frustrating trying to reach someone at esd espesially when ur dealing with something serious like repayment!!!

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Paolo Romano

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Thanks for the suggestion! I've been trying to get through to ESD all morning with no luck. I'll check this out - I really need to talk to someone before filing my appeal.

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QuantumLeap

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ESD IS ALWAYS DOING THIS!! They take the employer's word as gospel even when there's PROOF showing otherwise. The system is completely rigged against workers. I had almost the EXACT same situation last year - my hours were cut by 30%, I quit, and then got denied because my former boss lied and said I was fired for misconduct! Had to fight for MONTHS to get it resolved.

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Malik Johnson

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This isn't really helpful. Not all employers are out to get people, and not all ESD staff are trying to deny benefits. The system has rules, and they need documentation. That's just how it works.

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QuantumLeap

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SERIOUSLY?? Tell that to everyone who's been wrongfully denied benefits because their employer twisted the facts! It's literally happening to OP right now!

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Amina Diop

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One important point: even if you do appeal (which you should), you need to continue filing your weekly claims during the appeal process. If you win your appeal, you'll only get paid for weeks you properly claimed.

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Paolo Romano

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Really good to know - I was actually wondering if I should keep filing while this is all going on. Thank you!

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I'd recommend collecting any additional evidence that supports your claim: 1. Any emails/texts discussing your reduced hours 2. Pay stubs showing the reduction 3. Any communication where you expressed concern about the reduced hours 4. Statements from coworkers who knew the real reason you left (if possible) During your appeal hearing, be prepared to explain why you didn't explicitly tell your employer the hours reduction was your reason for leaving. The Administrative Law Judge will want to understand this discrepancy. In Washington, there isn't a specific law requiring you to tell your employer exactly why you're quitting, but for UI purposes, it creates problems when your story and the employer's don't match.

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Paolo Romano

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I have pay stubs showing the reduction and the original memo. I never really discussed it over email/text though. I was trying to be professional by not making a big deal about why I was leaving - now I wish I'd been more explicit!

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wait does anyone know if the op should pay back the money while appealing or wait to see what happens with the appeal first??

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Amina Diop

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Great question. You don't need to repay during the appeal process. If you lose the appeal, you'll receive a new notice with repayment instructions. If you win, the overpayment will be canceled. Just make sure to respond to the appeal within 30 days of the overpayment notice date.

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Paolo Romano

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UPDATE: I filed my appeal online and uploaded copies of the memo and my pay stubs showing the 25% reduction. I also explained that while I didn't specify the reason in my resignation letter, the hour reduction was the true cause. I've requested a hearing. This is so stressful - I really can't afford to pay back all that money! I'll keep you posted on what happens.

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You've done everything right so far. The pay stubs plus the memo make a strong case. When you get your hearing date, prepare a simple timeline of events that clearly shows: 1. When your hours were reduced (with the memo as evidence) 2. How long you stayed hoping for improvement (August to December) 3. When you resigned Keep it factual and straightforward. Good luck!

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