ESD sent me COVID-era overpayment notice for $7,800 - is this happening to everyone?
Just checked my mail to find an official ESD letter saying I was overpaid $7,800 in benefits from when I was laid off during the 2020 shutdown. I'm FREAKING OUT!! The letter says I have to repay all of it within 30 days or set up a payment plan. How is this possible?? I answered everything honestly on my weekly claims and reported exactly what they asked for. I even double-checked everything because I was paranoid about making mistakes. This has to be some kind of mass error, right? Has anyone else gotten a surprise overpayment notice recently? The letter mentions something about "retroactive eligibility determination" but doesn't explain what I supposedly did wrong.
18 comments
Sydney Torres
You're definitely not alone. ESD has been doing a lot of retroactive audits lately. I got a similar notice about 2 months ago for $4,300. When I called (took forever to get through), they said they determined I hadn't provided enough documentation for one of my job search activities each week. Check the letter carefully - there should be a section that explains the specific reason for the overpayment. You have the right to appeal within 30 days of the notice date. I'd recommend doing that immediately while you gather your documentation.
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Alfredo Lugo
•Thanks for letting me know I'm not the only one! I'll look at the letter more carefully when I get home tonight. Did you end up having to pay yours back or did the appeal work?
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Kaitlyn Jenkins
got mine last week. $5600!! they said i didn't qualify for regular UI and should have been on PUA or something. makes NO sense bcuz THEY approved me in the first place!!
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Alfredo Lugo
•That's exactly what I'm thinking! They reviewed everything initially and approved me. How can they come back years later and change their minds??
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Caleb Bell
This is happening due to ESD's multi-year review program. They're systematically reviewing all COVID-era claims and finding technicalities to issue overpayments. The good news is that you can appeal, and many appeals are successful if you have proper documentation. Here's what to do: 1. File your appeal immediately using the form that came with your letter 2. Request all records ESD has on your claim through their records department 3. Gather all documentation of your work history, layoff, and any job search activities 4. Be specific in your appeal about why you believe you were eligible The deadline for appeal is strict - 30 days from the date on the notice, not the date you received it. If you miss this window, it becomes much harder to contest.
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Alfredo Lugo
•Thank you for this detailed advice! I'm starting to gather everything right now. Do you know if I have to keep making payments while the appeal is in process?
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Danielle Campbell
This happened to my brother too! ESD is basically trying to claw back money from everyone they can. They know most people won't fight it. Stand your ground!
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Rhett Bowman
•While many people are getting these notices, it's not accurate to say ESD is targeting everyone. Each case has specific eligibility issues being reviewed. I've worked with clients who had legitimate mistakes in their claims and others where ESD made the error. The key is to understand the specific reason cited in your notice.
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Rhett Bowman
I've helped several clients with these COVID-era overpayment notices. The most common reasons are: 1. Job search requirements that weren't properly documented 2. Income reporting discrepancies 3. Availability for work issues 4. Employer contesting your claim after the fact 5. Misclassification between UI and PUA If you appeal, you can request a hearing with the Office of Administrative Hearings (OAH). I strongly recommend getting all your documentation in order before this hearing. Do NOT ignore the notice, as the debt can be sent to collections if unaddressed. Also, you may qualify for a waiver if repayment would cause financial hardship. There's a separate form for this that you can request.
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Alfredo Lugo
•Thank you for breaking this down. I'm self-employed now but was a W-2 employee when I filed. I think mine might be related to #4 - my former employer fighting it after the fact. They initially didn't contest anything.
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Abigail Patel
I went through this nightmare last year. I couldn't get ANYONE on the phone at ESD to explain the details. After 60+ calls over two weeks, I finally tried Claimyr (claimyr.com) and got through to ESD in about 20 minutes. The agent explained exactly which weeks were affected and why, which helped me prepare a specific appeal with the right documentation. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Turns out my former employer claimed I was fired for cause when I was actually laid off. I won my appeal by submitting the original layoff notice and emails from my manager.
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Alfredo Lugo
•OMG thank you for this tip! I've been trying to call ESD all morning and keep getting disconnected. I'll check out that service because I desperately need to talk to someone who can explain exactly what's wrong with my claim.
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Daniel White
anyone else notice all these overpayment notices started right after the legislature cut ESD's budget??? kinda suspicious timing if u ask me...
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Sydney Torres
•While the timing is interesting, these audits were actually planned years ago. Federal requirements mandate that states review a percentage of pandemic claims. But I agree it feels like they're being especially aggressive about it.
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Nolan Carter
Make sure to request a waiver of the overpayment! Even if you lose the appeal, you can still request that they waive repayment due to financial hardship or because the overpayment wasn't your fault. I got my $3,200 overpayment completely waived after showing I couldn't afford to pay it back on my current income.
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Alfredo Lugo
•I didn't know waiver was an option! Is that something I request separately from the appeal?
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Sydney Torres
UPDATE: After looking at the responses here, I wanted to share that there's now a class action lawsuit against ESD over these mass overpayment notices. You might want to Google it and see if you qualify to join. It argues that ESD approved claims based on their guidance at the time, and can't retroactively change interpretation of eligibility rules years later.
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Alfredo Lugo
•Just looked it up - thanks for mentioning this! I'm definitely going to follow that case. In the meantime, I got through to ESD today (using that Claimyr service someone mentioned above) and found out they're claiming I didn't provide enough job search proof for weeks 10-20 of my claim. I'm gathering all my emails showing job applications from that period.
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