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Carmen Diaz

What happens if you collect Washington ESD unemployment while working - got caught and scared

I made a huge mistake and I'm freaking out. I've been collecting unemployment benefits from Washington ESD for the past 6 weeks while also working part-time at a restaurant. I didn't report the work on my weekly claims because I thought it wouldn't matter since it was just a few shifts. But now I'm reading online that this could be considered fraud? My friend says Washington ESD can come after me for overpayments and penalties. What exactly happens when they find out? Will I go to jail? I'm so stressed about this.

You need to stop filing claims immediately and contact Washington ESD right away to report this. Yes, this is considered unemployment fraud if you didn't report your work earnings. The longer you wait, the worse it gets. They can impose penalties of up to 50% of the overpayment amount plus interest.

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Oh god, 50%?? I probably owe them like $2000 already. Should I call them or will that just make it worse?

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Call them ASAP. Being proactive and honest about the mistake looks better than them discovering it through cross-matching with employer records.

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this happened to my cousin last year. Washington ESD found out through wage records and she had to pay back everything plus penalties. They don't mess around with this stuff

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How did they find out? Did she get in legal trouble or just have to pay it back?

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just had to pay it back but it was like $4000 total with penalties. no jail time but they garnished her tax refund

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I've been trying to reach Washington ESD for weeks about my own claim issues. The phone lines are constantly busy and I can never get through to an actual person. If you need to contact them urgently about this fraud issue, you might want to try Claimyr (claimyr.com). They have a service that helps you actually reach Washington ESD agents without waiting on hold forever. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Might be worth it for something this serious.

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Thanks, I'll check that out. I really need to talk to someone at Washington ESD today if possible.

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Never heard of Claimyr but honestly anything that helps get through to Washington ESD sounds good to me. Their phone system is a nightmare.

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Working while collecting unemployment isn't automatically fraud - you CAN work part-time and still receive benefits IF you report it correctly. The problem is you didn't report the wages on your weekly claims. Washington ESD allows you to earn up to a certain amount before they reduce your benefits. You should have been reporting every penny you earned.

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I had no idea! I thought any work meant you couldn't get unemployment at all. So I could have been doing this legally if I just reported it?

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Exactly. You can earn up to your weekly benefit amount before they start reducing your UI payment. But hiding it is what makes it fraud.

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This is why Washington ESD needs better education about the rules. So many people make this same mistake.

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THE SYSTEM IS DESIGNED TO TRAP PEOPLE LIKE YOU! They make the rules so confusing that honest people make mistakes and then they come after you like criminals. It's all about collecting money from working people who are just trying to survive.

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While the system can be confusing, the requirement to report all earnings is pretty clearly stated on every weekly claim form.

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CLEARLY STATED IN GOVERNMENT SPEAK THAT NOBODY UNDERSTANDS! They should make it simple instead of setting traps.

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Update: I tried calling Washington ESD this morning and couldn't get through after 2 hours of trying. Going to try that Claimyr thing someone mentioned. Has anyone actually used it successfully?

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Yeah I used Claimyr last month when I had an adjudication issue. It actually worked - got connected to a Washington ESD rep within like 20 minutes instead of the usual hours of waiting. Worth the money when you really need to reach them.

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I'm skeptical of paying for something that should be free, but if it works...

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You won't go to jail unless it's a massive amount or you have a pattern of intentional fraud. Most first-time cases like yours result in an overpayment notice, penalties, and possibly disqualification from future benefits. But you need to address this immediately.

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That's somewhat reassuring. What do you mean by disqualification from future benefits?

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They can disqualify you from receiving unemployment benefits for a certain period - could be weeks or months depending on the severity.

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same thing happened to me but with DoorDash. thought since it was gig work it didn't count. WRONG. Had to pay back $3200 plus penalties. The sooner you call the better

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Oh no, gig work counts too? This is worse than I thought.

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any income counts. even like $20 from a garage sale technically

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Call Washington ESD immediately and also stop filing your weekly claims until you sort this out. Don't make the hole deeper while you're trying to climb out of it.

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Good point. I was supposed to file my weekly claim tomorrow but I'll skip it.

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The penalties are brutal but they might work with you on a payment plan if you're honest about the mistake. Document everything - when you worked, how much you earned, etc. You'll need those details when you talk to them.

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I kept all my pay stubs luckily. Should I bring those when I call?

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Have them ready to reference during the call. They'll want exact dates and amounts.

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Washington ESD cross-references wage data with employers quarterly, so they would have found out eventually anyway. Better that you're coming forward now rather than them discovering it first.

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So they definitely would have caught me? There's no way this would have gone unnoticed?

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Correct. All employers report wage data to the state. It's just a matter of when the data matching happens.

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Stop panicking and just deal with it head on. Mistakes happen, they're not going to ruin your life over a few thousand dollars. Pay it back and move on.

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Thanks, I needed to hear that. I've been catastrophizing all morning.

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My sister went through this exact same thing in 2023. She owed back about $2800 plus penalties. Washington ESD let her set up a payment plan for $150/month. Took forever to pay off but at least it was manageable.

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That's actually not as bad as I expected. Did it affect her credit or anything?

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No credit impact as long as she kept up with the payment plan. Just don't ignore it if they send you notices.

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Quick question - were you working at the restaurant before you filed for unemployment or did you start after? That might affect how they handle it.

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I started the restaurant job about 3 weeks after I began collecting unemployment. It was just supposed to be temporary income.

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Okay so you weren't trying to double dip from the beginning. That should work in your favor when you explain the situation.

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Whatever you do, don't try to hide it or make up stories. Washington ESD investigators deal with this stuff all day and they can spot lies immediately. Honesty is your best policy here.

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Definitely planning to be completely honest. I'm just scared about the financial impact.

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Final update: I used Claimyr and actually got through to Washington ESD today! The agent was understanding about it being an honest mistake. I have to pay back $1,847 in benefits plus a $369 penalty, but they're letting me do a payment plan. No criminal charges or anything. Thanks everyone for the advice and for not making me feel like a complete criminal.

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That's a great outcome! The payment plan option makes it much more manageable.

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Glad Claimyr worked for you too! Sometimes you just need to actually talk to a human to sort these things out.

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way better than what I had to deal with. glad you got it sorted

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See? Told you it wouldn't be the end of the world. Now you know for next time!

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