Husband fighting ESD overpayment after winning employer hearing - ID verification issue
My husband is dealing with a massive ESD overpayment notice ($8,700) that came out of nowhere last month. Here's what makes ZERO sense... he actually had a hearing with OAH against his former employer and WON that case. The employer tried claiming he quit, but the judge ruled it was a layoff and he qualified for benefits. Now, 9 months later, ESD is saying he didn't verify his identity properly?? We uploaded his driver's license, social security card, and utility bill exactly as requested. Filed the appeal paperwork within the 30-day window back in January. It's been almost 2 months and we've heard NOTHING back. We're supposed to file our taxes soon but I'm terrified they'll intercept our entire refund for this bogus overpayment. If he calls ESD directly about this mess, will they actually help resolve it or just demand payment? Has anyone successfully fought an ID verification overpayment? This feels like a complete nightmare.
21 comments


Luca Romano
i had something similar happen!!! won my hearing but then they came back with some bs about my work search activities. took FOUR MONTHS to get it sorted. the system is broken and they hope ppl just give up and pay
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Zara Rashid
•Four months?? That's ridiculous. Did they take your tax refund during that time or were you able to protect it?
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Nia Jackson
This is a complex situation but definitely worth fighting. When ESD issues an overpayment for identity verification reasons, it's often because something specific in your documentation didn't meet their requirements. Since you already won the OAH hearing about the separation issue, that part of your eligibility is settled. A few important points: 1. File your taxes but consider filling out Form 8379 (Injured Spouse Allocation) which may protect at least part of your refund 2. Request an overpayment waiver - look for Form ESD 640-001 on the ESD website 3. You need to keep pushing on the appeal you already filed - they're required to give you a hearing The fact that you won the previous hearing is a strong point in your favor. Document everything!
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Zara Rashid
•Thank you so much for this detailed response! I hadn't heard about Form 8379 - that might save at least my portion of our refund. I'll look into the waiver form too. I'm just worried that the appeal we already submitted is sitting in a pile somewhere being ignored.
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NebulaNova
Unfortunately, this happens a lot with ESD. They've been awful with identity verification ever since that massive fraud situation in 2020. But don't give up! If you actually sent in all those identity documents, you should eventually win your appeal. One tip - if you can't get through to someone on the phone about your appeal status (which, let's be real, is almost impossible), use Claimyr. It's a service that helps you get through to an actual ESD agent. I was skeptical but it worked for me after weeks of failed attempts. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 My advice: find out the status of your appeal ASAP. You need to know if they even received your paperwork before you can plan next steps.
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Mateo Hernandez
•YES ive used claimyr too when i was in adjudication hell for 2 months!!! it actually works when nothing else does
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Zara Rashid
•Thank you - I'll check this out. We've been trying to call for weeks with no luck. At this point I'd try anything to talk to an actual person who can tell us what's happening with our appeal.
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Aisha Khan
ESD IS GARBAGE!!!! They did almost EXACTLY this to me in 2024. Won my hearing but then 6 months later they said I didnt provide proper work search proof. EVEN THOUGH I UPLOADED EVERYTHING CORRECTLY!!! They took my ENTIRE tax return ($4,200) without warning. Been fighting it for 3 months now. The system is DESIGNED to make you give up!!!
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Zara Rashid
•This is exactly what I'm afraid will happen! Did you eventually get your money back or are you still fighting?
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Aisha Khan
•Still fighting!!!! They keep saying "case under review" but NOTHING HAPPENS. I may have to get a lawyer but who can afford that after they steal your money?????
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Ethan Taylor
I'm an unemployment advocate who works with these cases regularly. Here's what you need to understand about your situation: When you win an OAH hearing about separation (quit vs. laid off), that only addresses one eligibility issue. Identity verification is a completely separate eligibility requirement. What likely happened is that your husband's ID verification documents either: 1. Didn't match exactly (even minor discrepancies in address/name spelling can trigger this) 2. Were uploaded incorrectly (partial images, poor quality scans) 3. Weren't processed correctly on ESD's end (very common) I recommend taking these steps immediately: 1. Call ESD directly about the appeal status - it should be in their system 2. If you have any documentation showing your submission date, gather it now 3. Submit a formal records request to see exactly what ESD has on file 4. Consider requesting a hardship waiver if you qualify Don't wait for a tax intercept to happen before addressing this. The process to recover intercepted funds is much more difficult than preventing it.
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Zara Rashid
•This makes so much sense - we've been focusing on the fact that he won the hearing about the layoff and not understanding how this ID verification issue could override that. I'll definitely request our records to see what's actually in the system. Thank you!
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Yuki Ito
I just went through this nightmare. Had a $12,450 overpayment after I'd been approved and paid for months. Turns out their system flagged my ID documents because my driver's license address didn't match my current address (I'd moved). What worked for me: - Got through to a claims specialist who could actually see my file (took 17 calls) - Had to resubmit my ID docs with a signed statement explaining the address discrepancy - Filed for a waiver AND an appeal simultaneously (belt and suspenders approach) - Contacted my state representative's office for help It took 11 weeks but they finally reversed the overpayment entirely. Don't give up!
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Zara Rashid
•11 weeks is a long time to wait but at least you got it resolved! We actually did move during his claim period too, so maybe that's part of the problem. I hadn't thought about contacting our state representative - that's a good idea if we can't get anywhere with ESD directly.
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Mateo Hernandez
just be careful not to say anything they can use against u when u finally get someone on the phone!!! my brother in law accidentally said something that made them think he wasnt available for work during one week and they added THAT to his overpayment issues!!
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Luca Romano
•omg THIS!!! they twist everything u say. i always write down exactly what im gonna say before i call so i dont mess up
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Zara Rashid
•That's really good advice. I'll make sure my husband prepares exactly what he needs to say before calling so he doesn't accidentally create a new problem.
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Nia Jackson
Update on tax refund protection: I should clarify that Form 8379 (Injured Spouse) only works if the overpayment is only in your husband's name and you file jointly. The form protects your portion of the refund, not his. Another option is to request a Payment Trace from ESD confirming you have an active appeal. With documentation of an active appeal, you can sometimes prevent the tax intercept until the appeal is resolved. One thing that hasn't been mentioned: check if your husband received any communication from ID.me (the third-party verification service ESD uses). Sometimes the verification needs to happen through their system, not just by uploading documents to ESD directly.
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Zara Rashid
•He never received anything from ID.me that I'm aware of. Our only communications have been through the ESD portal. I'll check our spam folders though just in case. Thanks for the clarification about Form 8379!
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Carmen Lopez
my cousin had this exact issue last year and what fixed it was going in PERSON to a WorkSource office with all his ID docs. took 3 hours of waiting but he got someone to actually look at his stuff and fix it in the system. not all WorkSource offices can help with claims but some can!!
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Zara Rashid
•I didn't realize going to WorkSource was an option! There's one about 30 minutes from us. That might be worth trying if we can't get through by phone. Thanks for the suggestion!
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