Benefits overpayment happens when you receive benefits for which you are not eligible. Whether you knowingly or unknowingly receive these benefits, you could get a hefty penalty from the EDD (Employment Development Department). If you’re currently receiving extra benefits, read these five ways to avoid penalties from EDD overpayment today.
Provide Correct Information About Yourself
If the EDD believes you provided false information to receive benefits to which you were not entitled, you will get a penalty. It’s best to provide correct information about yourself to avoid issues. In addition, keep your contact information up to date so that the EDD can easily contact you or send you important documents.
Notify the EDD About Returning to Work
Another way to prevent penalties is to notify the EDD about returning to work. You can no longer receive unemployment benefits once you return to work, so if you’re working and still receiving benefits, the EDD will subject you to a penalty. Notify the EDD about your new employment status as soon as possible.
Notify the EDD If You Earned Any Money, Whether You Were Paid or Not
It’s critical to notify the EDD if you received any income while receiving unemployment benefits. If this happens, you must accurately report the gross earnings in your bi-monthly certification form. You can also write down the date you received the wages and benefits.
Track and Monitor All Payments
Track and monitor all payments while you’re receiving benefits, and notify the EDD if you’re still receiving wages from your last employer. In addition, if you get worker’s compensation or other payments, you must notify and track them. If any issue arises, you’ll have documentation of all payments throughout your period of unemployment.
Understand Your Status With Your Last Employer
If your last employer appeals your eligibility for unemployment benefits, the EDD can give you a penalty. In California, if your employer fired you or has proof of misconduct in the workplace, it can affect your eligibility for benefits. Therefore, it’s critical to fully understand your status with your last employer and understand the reason you’re no longer at the job.
We hope our list of five ways to avoid penalties from EDD overpayment was helpful to you. If you’re battling the EDD for overpayment issues, consider hiring an unemployment overpayment lawyer. Here at Pershing Square Law Firm, we have a team of experienced lawyers who can help you. We’ve encountered a variety of overpayment cases, so we understand the difficulty of navigating one. You’re not alone in this type of situation. If you have any questions, contact us today.