ESD taking money from new claim to pay off old overpayment - how much do they deduct weekly?

They'll take 50% of your weekly benefit amount until the overpayment is fully recovered. So if your WBA is $800, they'll withhold $400 each week. This happened to me in 2024 when I had to repay about $2,800 from a disqualification. The deduction should be clearly shown on your payment details when you check your account.

That's not entirely accurate. While 50% is the STANDARD collection rate, you can request a lower rate if you can demonstrate financial hardship. You need to call ESD directly and complete their financial hardship form. I've seen people get it reduced to 25% when they could provide documentation showing their regular expenses exceeded their remaining benefits after the 50% deduction.

Thanks for this info! Has anyone successfully completed the hardship application? What kind of documentation did they require?

THE SYSTEM IS RIGGED AGAINST US!!! They create these complicated rules so people end up with overpayments, then they take HALF your benefits when you're already struggling! I had an overpayment from a simple reporting error and they garnished 50% for MONTHS even though I explained it wasn't my fault and I couldn't pay my utilities. They don't care about real people!!!!

Good luck reaching anyone at ESD to discuss your options! I spent THREE WEEKS trying to get through to talk about my overpayment situation - constant busy signals and disconnections. Finally used a service called Claimyr (claimyr.com) that got me connected to an ESD agent in about 30 minutes. They have a video showing how it works at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It was super helpful for getting my overpayment issue resolved quickly instead of waiting forever.

Just to add some important info - if your overpayment was due to fraud (knowingly misreporting), they can take up to 100% of your benefits. If it was a non-fraud overpayment (honest mistake or ESD error), then the standard is 50% but can be reduced with hardship application. Also, the collections pause after 3 years if you haven't been on unemployment and haven't made payments, but restart once you file a new claim.

hey this reminds me, does anyone know if they can take your tax refund too for esd overpayments? i heard they can but my brother said they didnt take his

One thing that drives me CRAZY is they don't even tell you properly when they're taking money! My friend just found out they were taking 50% when her payment was half what she expected. No advance notice, no explanation, NOTHING! Check your payment details carefully because they won't warn you before they start taking money!

To ensure you're fully informed about your situation, I recommend taking the following steps: 1. Print out your current overpayment balance from your ESD account (under the "Overpayment" section) 2. Complete the Financial Hardship Application (Form ESD 640-001) if the 50% reduction would cause severe hardship 3. Include all required documentation of income and expenses 4. While waiting for processing, track your weekly benefit amount and the actual payment received 5. Budget accordingly, assuming 50% reduction until you receive written notification of a lower percentage The good news is that paying off the overpayment through this method doesn't impact your credit score the way other collection methods might.