ESD suddenly disqualified me for IC/gig work - hit with $5k overpayment after telling me it was allowed

You need to appeal this RIGHT AWAY. You only have 30 days from the date on the determination letter. Make sure you clearly explain that gig work/IC work is not the same as traditional employment and you didn't \

Thank you so much for this detailed advice. I'm filing the appeal online tonight. I do have screenshots of my earnings statements from the delivery apps showing I was 1099 and not W-2. Do you think I should include those with my initial appeal or wait for the hearing?\n\nI'm so worried about the overpayment. Will they try to garnish my bank account while this is being appealed?

omg the SAME EXACT THING happened to me last month!! i was doing instacart while on unemployment and esd suddenly said i

It's somewhat reassuring to know I'm not the only one dealing with this, though I'm sorry you're in the same boat. Did you end up filing an appeal? I'm trying to gather as much info as possible before my hearing.

I work with unemployment cases regularly, and this is a common misunderstanding at ESD. Independent contractor work is fundamentally different from traditional employment, but their automated systems often flag reductions in gig income as a \

This is incredibly helpful information. I do have screenshots of the declining pay rates over time in the app, and I've saved all my weekly certifications showing I reported everything honestly. \n\nI'll reach out to my state rep tomorrow. Do you think it's better to do a phone hearing or in-person hearing for this type of case?

Sadly this happens ALL THE TIME with ESD. Their system is SO BROKEN. They told you one thing then changed their mind later and expect you to pay for their mistake!!! I've been thru 3 appeals with them and won 2 of them. The key is documentation documentation documentation. SCREENSHOT EVERYTHING. Save every letter, email, and if you talk to them on the phone write down the date, time and the persons name you talked to. \n\nAnd dont feel bad about using IC work while appealing - you gotta eat!!! Just make sure you report any earnings correctly while you appeal.

Thanks for the encouragement! I've started keeping a detailed log of everything now, including all my calls and interactions with ESD. Did your appeals take a long time to resolve? I'm worried about how I'll manage financially while waiting.

After trying to call ESD for weeks about a similar issue (they misclassified my freelance work), I finally got through using Claimyr. It's a service that basically holds your place in the ESD phone queue and calls you when an agent is available. Saved me hours of redial hell. Their site is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3\n\nI was able to talk directly to an adjudicator who reviewed my case on the spot and saw that I had been misclassified. Got my disqualification reversed within 48 hours. Sometimes talking to the right person makes all the difference versus waiting months for an appeal hearing.

I've never heard of this service before but I'm definitely checking it out. At this point I'll try anything to get this resolved faster. Did you have to provide any documentation when you spoke with the adjudicator?

This situation sounds really stressful, and I've been through something similar. When I appealed my overpayment (different reason but same process), what really helped was getting a letter from the gig company stating that I was an independent contractor and not an employee. Most have a legal department that can provide this.\n\nMake sure you check the box requesting a hearing when you file the appeal. The letter might say you have to pay while waiting for the appeal decision, but that's not true - they can't collect while your appeal is pending.\n\nIn the meantime, don't panic about the overpayment amount. Even if your appeal isn't successful (though it sounds like you have a strong case), ESD has payment plans and hardship waivers. I set up a $50/month payment plan when I was struggling.\n\nKeep applying for jobs and documenting everything. If you do go back to gig work temporarily, just report it accurately on any continued weekly claims you file.

payment plans with ESD are a joke lol. they wanted me to pay $300 a month when i was barely making ends meet already. the whole system is designed to bleed us dry

I appreciate the suggestion about getting an official letter from the gig companies - I hadn't thought of that! I'll reach out to their support departments today. And thanks for the reassurance about collections during the appeal process, that was keeping me up at night.

ESD is shady AF with these decisions. They wait till you've spent all the money then hit you with an overpayment. Classic government tactic. They told me the EXACT same thing about gig work being fine under the weekly amount then turned around and disqualified me 3 months later!!!\n\nDon't expect them to be reasonable. The appeal process is designed to wear you down so you'll just give up and pay. Make sure you request a hearing in front of a judge because the regular ESD people will just rubber stamp the original decision.\n\nI ended up having to get legal aid involved to finally get them to back off. Try calling the Unemployment Law Project - they offer free help for unemployment cases.

Thanks for the Unemployment Law Project tip - I'll look them up right now. It does feel like they set people up to fail sometimes. I'm definitely requesting a hearing with a judge rather than just the initial appeal.

One thing nobody's mentioned yet - when you file your appeal, you need to specifically address why your reduction in gig work shouldn't be considered a \

This is excellent advice - thank you for the specific laws to reference. I've started drafting my appeal letter and will definitely include these points. I'll also request my full file right away. I have documentation of all my job search activities showing I was actively looking for full-time employment throughout this period.

don't forget to file for continued benefits while appealing!!! i made that mistake and lost 2 months of potential benefits even tho i won my appeal!!! even if they say ur disqualified, file weekly claims anyway and note that ur appealing.

That's a really good point - thank you! I almost stopped filing because of the disqualification letter. I'll make sure to keep submitting my weekly claims during the appeal process.