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ESD reversed unemployment approval after employer appeal - now demanding repayment

I'm in a total panic right now. My husband was on unemployment for about 7 months after being laid off from his construction job. Everything was fine - he filed weekly, did all the job search requirements, and ESD approved everything. Then his benefit year expired last month so he had to refile. Out of nowhere, he got denied AND they sent a notice saying they made a mistake on his original approval?? Apparently his old boss appealed his claim months ago (never told us!) and now ESD is demanding ALL the money back - we're talking over $12,500! We've already spent that money on rent and bills! My husband filed an appeal immediately but I'm terrified. Has anyone dealt with employer appeals after-the-fact like this? What are our chances of winning? Will we need a lawyer? I can't sleep thinking we might have to go to court over this...

Take a deep breath first. This happens more often than you'd think with ESD. Your husband did the right thing by filing an appeal - that stops any collection actions temporarily. The good news is that if he was legitimately laid off and ESD initially approved him, there's a decent chance of winning. Was he fired for misconduct or did he quit according to the employer? That's usually what these retroactive appeals are about.

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Gael Robinson

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Thanks for responding! The termination letter said "layoff due to reduced project schedule" but now his boss is claiming my husband was fired for being late too many times? But that's not what the paperwork says at all. We have the original letter somewhere in our files.

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Darcy Moore

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omg this happened to my cousin!!! his boss said he quit but he was actually laid off, took FOREVER to sort out with esd. they made him pay back like 6 weeks but he won for the rest. make sure u have ALL ur documents!!!!

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Gael Robinson

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Did your cousin have to get a lawyer? I'm so worried we can't afford one but I don't know how to fight this on our own.

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Dana Doyle

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Your husband needs to gather ALL documentation immediately: 1. The original layoff letter (crucial evidence) 2. Any communication with the employer about the layoff 3. His initial ESD application and approval 4. Work attendance records if he has them 5. Any warnings about tardiness if they existed The Office of Administrative Hearings (OAH) will schedule a hearing where both sides present their case. You DON'T necessarily need a lawyer, but it helps to be organized. ESD calls these "overpayment assessments" and you have a right to appeal if the facts don't support their reversal. The fact that you have written documentation of a layoff is very helpful for your case.

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Liam Duke

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the system is so messed up, they do this all the time thinking people wont fight back. i had to appeal TWICE before they finally admitted they were wrong. its like they hope u just give up and pay!!

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Manny Lark

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I went through almost the exact same situation in 2025. My former employer claimed I was fired for attendance issues months after I'd been collecting benefits. I was panicking about repaying $9,800! Have you tried calling ESD directly to understand exactly why they reversed their decision? That should be your first step. I spent weeks trying to get through on the ESD phone lines and kept getting disconnected. Finally used a service called Claimyr (claimyr.com) that got me through to an actual ESD agent in about 25 minutes. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Once I actually spoke with someone, I found out exactly what evidence my employer had submitted, which was super helpful for preparing my appeal. The agent also noted in my file that I was contesting the overpayment.

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Gael Robinson

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Thank you! I've been trying to call for days and just get the 'high call volume' message then it hangs up. I'll check out that service - we desperately need to talk to someone who can explain what's happening. Did you end up winning your appeal?

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Manny Lark

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Yes, I won my appeal! The judge at OAH was actually fair and looked at all the evidence. My employer couldn't prove their claims about my attendance because they had no documentation. The written layoff notice you mentioned will be super helpful - bring the original to the hearing if possible. Also, when you do get through to ESD, request a copy of your husband's entire file under the Public Records Act. This will show you exactly what the employer claimed and when they filed their appeal. Knowledge is power in these situations!

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Rita Jacobs

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i dont think its even worth fighting, my brother just set up a payment plan with esd when this happened to him. the hearings are TOTALLY biased toward employers!!!

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Dana Doyle

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I strongly disagree with the comment above. The OAH judges are independent from ESD and are quite fair in my experience. I've helped several people prepare for these hearings. Here's what improves your chances: 1. Be extremely organized with your evidence - number each document 2. Practice explaining why the layoff was legitimate in clear, concise statements 3. Submit all evidence to OAH before the deadline (usually 1 week before hearing) 4. If the employer claims tardiness, but never documented it or warned your husband formally, point this out 5. Focus on the fact that ESD initially approved the claim based on available information The burden is actually on the employer to prove misconduct if they're claiming he was fired. If they just have verbal claims with no documentation, and you have a written layoff notice, you're in a strong position.

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Gael Robinson

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This is so helpful, thank you! We found the layoff letter and it clearly says "position eliminated due to project completion and reduced workload" - nothing about performance or attendance. I feel a little better now. The hearing is scheduled for next month.

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Khalid Howes

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Just wanted to share that I won my ESD appeal last year in a similar situation. The key was being super prepared and calm during the hearing. Don't interrupt the employer or the judge, just wait your turn to present your evidence. Also, remember that in WA state, employers have to prove "misconduct" to disqualify someone from benefits - not just that they weren't a great employee. Misconduct has a specific legal definition that requires willful or wanton disregard of the employer's interests. Occasional tardiness usually doesn't meet this standard unless there were written warnings that your husband disregarded. Good luck!

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Gael Robinson

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Thank you! I didn't know that about the misconduct definition - that's really helpful. My husband was occasionally late (maybe 5-10 minutes) because of childcare handoffs, but he always called ahead and there were never any written warnings about it.

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Based on everything you've shared, you're in a pretty strong position for the appeal. Having the written layoff notice is extremely valuable evidence. The fact that the employer is now changing their story to claim it was for tardiness, when they documented it as a layoff due to reduced work, severely undermines their credibility. One other thing to prepare for: ESD may try to say you have to repay while the appeal is pending. You can request a "waiver of collection" due to financial hardship while your appeal is in process. This stops them from taking actions like garnishing wages or tax refunds until after the hearing decision. Please come back and let us know how the hearing goes!

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Gael Robinson

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I definitely will! This forum has been so helpful - I was panicking before but now I feel like we actually have a chance. I'll update after the hearing next month. One more question - should we record the hearing? I think they said we're allowed to.

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Dana Doyle

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Yes, absolutely request to record the hearing! OAH records it anyway, but having your own copy is helpful. Also, take detailed notes during the employer's testimony - they often contradict themselves, which you can point out during your response. One last tip: use the exact terminology from the ESD handbook when possible. For example, don't just say "I was laid off" but instead say "I was separated from employment due to lack of work, which is not misconduct connected with the work." Using their language shows you understand the standards they're applying.

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