ESD overpayment from old claim affecting my new unemployment benefits - what happens?

Yes, ESD will definitely use your current benefits to recover the previous overpayment. This is called benefit offset. They're allowed to take up to 50% of your weekly benefit amount to pay toward your overpayment. So if your weekly benefit amount is $800, they could take $400 each week until the overpayment is paid off. They won't deny your new claim just because of the overpayment, assuming you otherwise qualify for benefits. The claim will be processed normally, but your payments will be reduced. I recommend you call ESD immediately and ask about setting up a repayment plan that might be more manageable than the automatic 50% deduction. Sometimes they can reduce it to 25% if you can demonstrate financial hardship.

same thing with me but they took 100% of my benefits for like 6 weeks!!! didnt get a single $ until old overpayment was gone. maybe depends on how much u owe???

The previous responders are partially correct, but there are some important details missing. Under WAC 192-230-100, ESD can collect overpayments through various methods, including offsetting future benefits. However, the standard offset is 50% of your weekly benefit amount, not 100% as someone suggested (though in rare cases they can take more). You should also know you have rights here: 1. You can request a negotiated repayment schedule by calling ESD and explaining your financial hardship 2. You may be eligible for an overpayment waiver if repayment would cause significant hardship and the overpayment wasn't your fault 3. The overpayment collection can be deferred temporarily if you're experiencing extreme financial hardship I strongly recommend contacting ESD directly to discuss your options. Don't ignore this - being proactive will give you more options.

Im so mad at ESD right now I feel your pain!! They said I was overpaid $2,800 from 2022 and now they're garnishing my current benefits AND sent a letter saying they might take my tax refund too!!! The whole system is designed to punish people who are already struggling. I filed an appeal but haven't heard anything for 6 weeks. Good luck with your situation, definitely call them ASAP.

I spent WEEKS trying to get through to ESD about an overpayment issue last year. Their regular phone line is absolutely useless - either busy signals or disconnects after waiting an hour. I finally used Claimyr (claimyr.com) to get through to an actual person who helped sort it out. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 When I finally got through, I explained my financial situation and they reduced my repayment to 25% of my weekly benefit. Made a huge difference in being able to pay bills while job searching. Definitely worth trying to negotiate rather than just accepting whatever they automatically take.

i had overpayment from 2021 and they took exactly 50% from each payment when I filed a new claim last december. but heres the thing - you need to make SURE youre setting aside money for taxes!! the amount they take for overpayment doesnt reduce your tax liability so youre still getting taxed on the full benefit amount even tho youre not receiving it all. learned that the hard way!!

One more important thing: document EVERYTHING. Every time you call ESD, write down the date, time, who you spoke with, and what they told you. If they make any promises about your repayment plan, ask for it in writing or at minimum get a reference number for the call. I've seen cases where claimants negotiated payment plans, only to have them not properly noted in the system. Then they were surprised when different amounts were withheld than what they agreed to. Also, check your ESD online account frequently once payments start. The overpayment balance should decrease with each payment. If you see any discrepancies, contact them immediately.

Since the overpayment happened in 2023, you should also check if you qualify for an overpayment waiver based on equity and good conscience. The criteria changed slightly in recent years, and ESD now has more flexibility to waive overpayments in certain situations. To request a waiver, you'll need to complete ESD's financial statement form and show that repayment would cause significant financial hardship. Success with waivers varies, but it's worth trying if your overpayment wasn't due to fraud or misrepresentation. At minimum, I'd recommend asking for the lowest possible repayment rate based on your financial situation. Having some income while job searching is better than none.