ESD taking $400/week from my benefits for overpayment - is 14 month waiver wait normal?
I've been fighting with ESD about an overpayment issue since last year. They determined I was overpaid about $7,800 from a claim in 2023 (they said I didn't report some freelance income properly, even though I thought I did). I immediately filed for an overpayment waiver because I genuinely can't afford to pay it back - I'm still struggling financially. The problem is, it's been 14 MONTHS since I submitted the waiver request, and they're STILL taking $400 a week from my current unemployment benefits! I'm only getting $262/week after they take their cut. How am I supposed to survive on that? Is there a legal limit to how long they can take to process a waiver? And can they really take that much from my current benefits while I'm waiting? This feels like extortion. Has anyone else waited this long for a waiver decision?
16 comments
Nina Fitzgerald
omg same thing happened to me!!! they took $350/wk for like 8 months before my waiver finally went thru. its ridiculous how they expect people to live while theyre taking most of your benefits! i called them like 20 times and always got different answers about how long it would take
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Kylo Ren
•8 months is bad enough, but 14?? Did you do anything special to get them to finally process yours? I'm desperate at this point.
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Jason Brewer
Unfortunately, yes, ESD can legally take up to 50% of your weekly benefit amount to recover overpayments while your waiver is pending. The 14-month wait is unusually long though - typical processing time should be 2-4 months for overpayment waivers. You need to specifically request a 'hardship reduction' in the amount they're recouping each week. This is separate from the waiver itself. Call ESD and explicitly ask for a hardship reduction in recoupment amount while your waiver is pending. You'll need to provide financial documentation showing your expenses exceed your current income with the reduced benefits.
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Kylo Ren
•Thank you for this information. I had no idea about the hardship reduction option. I'll definitely call and ask for that. Do you know if there's a specific form for the hardship reduction request or is it just something I ask for verbally when I call?
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Kiara Fisherman
I waited 10 months for my waiver last year and it was torture!!! The ESD employees kept telling me "it's in process" but nothing ever happened. I finally contacted my state representative and magically my waiver was processed within 2 weeks after that. Try reaching out to your district's rep - they have special contacts at ESD who can push things through.
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Liam Cortez
•This is actually really good advice. I work for a state agency (not ESD) and legislative inquiries get fast-tracked through a special unit. We have to respond to those within days, not months.
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Savannah Vin
The ESD collections department is separate from the waiver department and they don't communicate well. Your waiver could be sitting in a queue while collections keeps taking money. You should try using Claimyr to reach an actual ESD agent without waiting on hold for hours. I was in a similar situation and finally got through using their service (claimyr.com). There's a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 - once I got through to a live person, they were able to check on my waiver status and escalate it. The agent also put a temporary hold on collections while they reviewed my case.
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Kylo Ren
•I've been trying to call ESD for weeks but always get disconnected or told the wait time is over 2 hours. I'll check out that service - at this point I'd try anything to talk to a real person who can help.
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Mason Stone
ESD IS SUCH A JOKE!! they make these "mistakes" all the time and WE have to pay for it while they take their sweet time fixing it. i bet if THEY owed YOU money it wouldn't take 14 months!!!
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Makayla Shoemaker
•I understand your frustration, but sometimes these issues are complex. For the original poster, I'd recommend also checking if your waiver could have been denied without you being notified. ESD should have sent a determination letter, but mail gets lost. You can check your online account for any new determination documents or call to specifically ask if a decision was already made on your waiver.
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Jason Brewer
Another option to consider is requesting a formal hearing with the Office of Administrative Hearings (OAH) specifically about the delay in processing your waiver. You have the right to appeal not just the overpayment itself, but also ESD's failure to process your waiver request in a reasonable timeframe. This creates a legal record of the delay and often prompts action. The appeal can be filed online through the OAH portal.
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Kylo Ren
•I didn't realize I could appeal the delay itself. That sounds like it might light a fire under them. I'll look into the OAH portal today. Between this, the hardship reduction, and contacting my representative, hopefully something will work!
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Christian Bierman
my cousin had to wait almost a year for his waiver and then they denied it anyway lol just saying dont get your hopes up too much the system is rigged
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Nina Fitzgerald
•thats so messed up! did he appeal the denial? my friend appealed hers and actually won but it took another 3 months 🙄
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Makayla Shoemaker
I had a similar issue but with a different timeline. For anyone dealing with overpayment waivers, here's what worked for me: 1. Request a Statement of Overpayment Account to verify exactly how much they say you owe and how much they've already recouped 2. Submit a hardship reduction request (Form ESD 640-001) to temporarily reduce the weekly amount they take 3. Check if your waiver was actually denied already - sometimes the notices go to spam or get lost 4. If it's been over 6 months, file a complaint with the ESD Commissioner's Office directly The hardship reduction form specifically asks about your income and expenses, and they can reduce the recoupment to as little as 10% of your weekly benefit rather than the default 50%.
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Kylo Ren
•This is incredibly helpful information, thank you! I didn't know about the Statement of Overpayment Account or that there was a specific form for hardship reduction. I'll be requesting both of these tomorrow. Reducing from 50% to 10% would make such a huge difference while I'm waiting.
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