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ESD randomly refunded my overpayment from 4 years ago - should I be worried?

I'm completely confused by what just happened with ESD. About 4 years ago, I had a dispute with my former employer over my job separation, and ESD ruled I had received an overpayment. I paid the entire amount (around $5,600) and moved on with my life. Well, yesterday I checked my bank account and found ESD had deposited the EXACT amount I paid back then! I logged into my ESD account for the first time in years and found a letter saying they'd received my "overpayment waiver request" (which I NEVER submitted) and that "in good conscience" they determined they made an error and needed to return the funds. I've been trying the phone number on the letter but can't get through to anyone. I'm not touching this money because I'm worried they'll realize their mistake in a year or two and demand it all back again. I've dealt with enough ESD drama already and don't want another surprise bill. Has anyone experienced something similar? Should I keep trying to contact them to clarify? Part of me feels like they should just keep the money and use it for people currently struggling with overpayments. What would you do in this situation?

Natalie Wang

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This is actually more common than you'd think! ESD periodically reviews old cases, especially when there have been policy changes or legal precedents that affect previous determinations. If they found your separation should have been approved under current standards, they're legally required to refund the money. My advice - don't spend it yet, but do get documentation. Print out the letter and take screenshots of your ESD account showing the determination. Then send a secure message through your ESD portal specifically asking them to confirm this refund is legitimate and final. That documentation will protect you if anything happens in the future. In my experience, once ESD makes a formal determination like this (especially in writing), they rarely reverse it unless there was actual fraud involved.

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Michael Adams

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Thank you! I didn't realize they did periodic reviews of old cases. I'll definitely save all the documentation and send that secure message. Do you know if there's a better time to call them? I've tried multiple times today and can't get through.

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Noah Torres

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OMG dont spend a dime!!!!! ESD is NOTORIOUS for these kinds of mistakes!!! My cousin had almost the exact same thing happen in 2022 and ended up having to pay back $3800 plus INTEREST a year later when they "discovered their error" 😡 The whole system is a mess

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Samantha Hall

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Same happened to my neighbor!! ESD gave him money then took it back with penalties. The unemployment system is completely broken in this state.

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Ryan Young

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I worked as an employment counselor for years and can tell you that while these situations are rare, they do happen - especially when ESD reviews old cases after legal precedents change how they interpret separation rules. Here's what I recommend: 1) Keep documentation of EVERYTHING - the letter, screenshots of your account, transaction records 2) Send a formal message through your ESD portal referencing the specific case/document number from the letter 3) Request written confirmation that this refund is final and not subject to future reconsideration 4) Don't spend the money for at least 90 days - if there was a system error, it typically gets caught within that window After those steps, if you receive written confirmation and the 90 days pass without issue, the money is likely legitimately yours. ESD doesn't randomly send out thousands of dollars - this was an intentional decision made through their review process.

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Michael Adams

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Thank you for the detailed advice! I'll definitely follow these steps. Do you think I should also send a physical letter in addition to the portal message? I'm worried about documentation since their online system sometimes has issues.

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Sophia Clark

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i had something similar but half the amount lol. i just kept the money and nothing happened. that was like 2 years ago. if they gave it to you its yours man just wait a bit to be safe maybe

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You need to reach an actual ESD agent to clarify this situation. I was in endless phone queues trying to resolve my adjudication earlier this year until I found a service called Claimyr (claimyr.com). They basically hold your place in line and call you when an agent is available. Saved me hours of frustration! They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Once you get through, ask specifically for a letter of determination confirming the reversal is permanent. That way if they ever try to claim it was a mistake, you have official documentation. Also ask them to note in your file that you attempted to verify the refund's legitimacy.

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Michael Adams

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Thank you! I'll look into that service. I've been calling for two days with no luck. Did you find they were helpful with complex situations like this?

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Yes, once I actually got through to a real person, they were able to help with my complicated situation. Just be prepared with all your documentation and case numbers. Make sure to specifically ask for a supervisor if the first agent seems confused about your case - the supervisors have more authority to research and verify these kinds of unusual situations.

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Madison Allen

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The EXACT same thing happened to me!!!! Except I only got HALF of what I paid back in 2021!!! I've called like 47 times (not exaggerating) and FINALLY got through yesterday. The rep said something about a "blanket overpayment forgiveness initiative" that was approved by the legislature for certain types of separation disputes from 2018-2022. They're processing thousands of these refunds right now. The rep couldn't tell me why I only got half back though... so frustrating!!! She just kept saying to "be patient" and that there might be more coming 🙄

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Michael Adams

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Wait, there's a blanket forgiveness initiative? That would explain a lot! Did they mention anything about documentation or if we need to report this on taxes? I'm glad you finally got through to someone.

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Madison Allen

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The lady wasn't super clear on details (shocker lol) but she DID say something about tax documents being sent out in January. She also mentioned something about "qualifying separations" but couldn't tell me the exact criteria. It's all so VAGUE which is why we all get so frustrated with ESD!!! Their communication is terrible!!!!

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Noah Torres

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This is why i HATE the unemployment system. some people get random refunds while others struggle for months just to get benefits they deserve. no rhyme or reason to any of it.

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Natalie Wang

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Based on what others have shared about the "blanket overpayment forgiveness initiative," this makes perfect sense now. The Washington legislature did approve a measure last year to review certain types of separation disputes where employer testimony was the primary deciding factor. If yours fell into that category, you're legitimately entitled to this refund. As for what to do: I recommend keeping the money in a separate savings account for 6 months. If ESD doesn't contact you by then requesting it back, it's almost certainly yours to keep. By that time, you should also have received a 1099-G for tax purposes if the refund is considered taxable income (which it likely is). The most important thing is that you've already tried to verify this with ESD, which shows you're acting in good faith if there ever was an issue down the road.

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Michael Adams

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That's a great idea about keeping it in a separate account for 6 months. I think I'll do exactly that. And you're right - at least I have documentation showing I tried to clarify the situation. Thanks for the thoughtful advice!

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Ryan Young

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Just a final thought - while waiting for verification, check if you can access any adjudication notes in your online ESD account. Sometimes the decision documentation contains important details about why they reversed their decision. Look specifically for terms like "administrative review," "legislative relief," or "class action settlement" - all of these would indicate a systematic reversal rather than an error. Also, starting in 2025, ESD is required to provide clearer documentation when they reverse previous decisions, but since your refund is happening under the old system, you might need to dig a bit for the full explanation.

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