What Are the Different Types of Overpayment Cases?

Benefits can be a lifeline when you lose your job or find yourself unable to work. However, you might be in a situation where the Employment Development Department (EDD) makes a claim that you received more money than you should have. Learn more about the different types of overpayment cases and what you should do when you face such a situation. The two primary types are:

• Unemployment benefit overpayments
  

• Disability or paid family leave benefit overpayments

Unemployment Benefit Cases

•  What Triggers Overpayment

A benefit overpayment is when you collect unemployment benefits you are not eligible to receive. The most common reasons for an overpayment are:

• You incorrectly reported your wages when certifying for benefits and were overpaid benefits.
• You collected benefits for a week that we later determined you were not eligible to receive.
• Administrative or informational mismatches in identity or records.

• Fraud vs. Non‑Fraud

Overpayments are classified as either fraud or non-fraud:

• Fraud: If we determine that you intentionally gave false information or withheld information, the overpayment is considered fraud. You will have to pay a 30 percent penalty in addition to the overpayment amount. You may also be disqualified for future benefits for up to 23 weeks.
• Non-fraud: If the overpayment was not your fault, it’s considered non-fraud. You will receive a notice telling you if the overpayment must be repaid.

• Notices & Timelines

• Notice of Potential Overpayment (DE 1447)

If we determine the potential overpayment was not your fault or was not due to fraud, you may qualify for an overpayment waiver. We will send you a Personal Financial Statement (DE 1446) with the Notice of Potential Overpayment.

• Notice of Overpayment

If we determine you collected unemployment benefits you were not eligible to receive, we will send you a Notice of Overpayment (DE 1444). EDD may mail you a Notice of Potential Overpayment if we need more information to determine if you were overpaid or the amount you were overpaid. 

For a potential unemployment overpayment, you must respond to the notice within 15 days so we can make the correct determination. For disability or PFL, you must respond within 14 days.

The Notice of Overpayment (DE 1444) will include:

• The total amount due.
• A summary for each week that you were overpaid.
• Information on how to appeal.

• Appeal Rights

You have the right to appeal an overpayment determination. To do so, submit your appeal in writing within 30 days of the mailing date listed on the Notice of Overpayment (DE 1444).

If more than 30 days have passed, you can still file an appeal. However, you’ll need to explain the reason for the delay and why you were unable to meet the original deadline.

An Administrative Law Judge (ALJ) will review your reasons for missing the deadline. If the ALJ decides that you had good cause for missing the appeal deadline, the ALJ will continue to review your appeal. Follow the instructions in your Notice of Overpayment if you want to appeal.

For more information about appealing an overpayment, see Unemployment Insurance Appeals.

• Waivers

If we determine the potential overpayment was not your fault and was not due to fraud, you may qualify for an overpayment waiver. We will send you an Application for Overpayment Waiver (DE 1446UI) with the Notice of Potential Overpayment (DE 1447).

You must complete and return the Application for Overpayment Waiver (DE 1446UI) to be considered for a waiver. We will review your information to determine if repaying the overpayment would cause you extraordinary hardship. 

• If you qualify for a waiver, we will send you a Notice of Overpayment with the amount that was waived.
• If you do not qualify for a waiver, we will send you a Notice of Overpayment (DE 1444) or a Notice of Denial of Waiver (DE 1445) with a section that explains why you did not receive a waiver.
• EDD evaluates using a “Family Income Level Table”—e.g., for a one-person household, the income threshold is $1,509/month (July 2023–June 2024).

• If approved, the overpayment is partially or fully waived, and “Notice of Overpayment Waiver” is issued
• If you did not qualify for a waiver, your notice will also include the reason why the waiver was denied.

• Appeals Process

• Must file DE 1000M or a letter within 30 days of the notice’s mailing date
• Even late appeals are accepted if you show “good cause.” An Administrative Law Judge (ALJ) will review

• Repayment Mechanisms

• Offsets: For non‑fraud, EDD deducts up to 25% of weekly benefits; for fraud, it’s 100% 
• Monetary repayments: Use Benefit Overpayment Services online to:

• Enroll via myEDD. (with Claimant ID and Letter ID) 
• Make one time ACH payments
• View past payments
• Set up an installment agreement

• Payment Options

• Pay Online
• Pay by Phone
• Pay by Mail

• Penalties

•  Unpaid balances can result in:
• Withheld tax refunds or lottery winnings
• Court liens or wage garnishment
  Interest and legal fees

Disability or Paid Family Leave Benefit Cases

Two other types of overpayment cases are disability or paid family leave, where you receive assistance due to an injury or illness or you must provide care for a family member. Possible reasons for overpayment in these cases include a healthcare provider’s determination that you are fully capable of going back to your job or that you gave false information when you submitted your wages.

• Continue or Stop Your Benefits

If you are eligible, you may receive Disability Insurance (DI) benefits until your expected recovery date provided by your physician/practitioner. There are times, however, when you must notify us to continue or stop your DI benefits.

Failure to report your income or a change in work status could result in an overpayment, penalties, and a false statement disqualification.

• Continue Your Benefits
• Stop Your Benefits

• Failure to Report Return to Work

• If you return to work (full-time or part-time) or recover from your disability and continue receiving benefits without notifying EDD, it may lead to overpayment.
• You must notify EDD immediately via SDI Online or by calling 1‑800‑480‑3287.

Not Submitting Continued Claim Certification (Form DE 2593)

• After 10 weeks of receiving DI benefits, you’re required to submit DE 2593, a continued claim certification form.

• Failure to return this form can result in overpayment if benefits continue without verified eligibility.

Receiving Benefits Past Eligibility Timeframe

• Continuing to receive benefits after you’re no longer eligible—either due to recovery or return to work—without stopping your claim can result in overpayment.

Incorrect Wage Reporting

• If you provide wrong wage information while applying for DI or PFL, the benefit amount may be miscalculated, leading to overpayment.

• Waivers & Appeals

Waiver Evaluation

• EDD uses the same family income threshold table as UI to determine if a waiver is appropriate.

• If your income is below the threshold and the overpayment wasn’t your fault, repayment may be waived.
  

Denial of Waiver

• If your waiver request is denied, EDD sends a Denial of Overpayment Waiver Notice.

• This is accompanied by an appeal form, which you must submit within 30 days.
  

• Appeals Process
  

• Appeals for DI and PFL follow the procedure outlined on the EDD Disability Appeals page.

• You can appeal any overpayment or denial of waiver decision.
  

• Reporting Requirements

• Use SDI Online or contact EDD at 1‑800‑480‑3287 to:

• Report when you return to work or recover.

• Certify your continued eligibility using:

• DE 2593 (Continued Claim Certification)

• DE 2500A (Medical extension or physician’s continued disability certification)

• Impact on Benefit Amount

Overpayments May Reduce Future Benefits

• If you were overpaid, the EDD may deduct the overpaid amount from your current or future DI/PFL payments.
  

Wage Overlap Reduction

• If wages from employment overlap with the base period or disability dates, DI benefits are reduced accordingly.

Resources at a Glance

Benefit Type	Action Required	Waiver Applicable?	Forms / Agencies
Unemployment	Appeal within 30–60 days	Yes, if no fault shown	State UI agency, UIPL guidance
SSDI / Title II	Appeal/waiver within 90 days	Yes, file SSA‑632	SSA; withholding capped at 50%
SSI / Title XVI	Call/file ASAP if ≤ $2,000	Yes, phone waivers available	SSA‑632, form SSA‑561
State PFL / TDI	Appeal within 30 days	Yes, if state allows	State TDI/PFL agency (e.g., EDD in CA)

What To Do When This Happens

 1: Respond Immediately

• For UI: reply to DE 1447 within 15 days

• For DI/PFL: reply within 14 days
  You must respond even to dispute the content

 2: Identify Fraud vs Non-Fraud

• Review notice if classified fraudulent (30% penalty) or non-fraudulent (possible waiver and 25% offset) 

3: Apply for a Waiver

• Submit DE 1446UI (UI) or waiver documents as instructed for DI/PFL

• Provide financial data—gross family income over six months 

 4: Appeal If Needed

• UI: use DE 1000M within 30 days (or letter)

• DI/PFL: follow appeals procedures via EDD’s DI Appeals guidance
• Late appeals accepted with demonstration of “good cause”

 5: Manage Repayment or Offset

• After 30 days, EDD issues DE 8344JUDR, enabling enrollment in Benefit Overpayment Services 
• Use myEDD or mail to pay, set up installment plans, or accept weekly offsets 

 6: Prevent Future Overpayments

UI Recipients Should:

• Submit certifications accurately & timely
• Immediately report job changes or income
• Stop certifications once working full-time

DI/PFL Recipients Should:

• Use SDI Online to manage claims, certify eligibility, and report income

• Submit DE 2593 or DE 2500A forms timely to continue or stop benefits accurately 

Step 7: Know EDD Collection Tools

If unpaid, EDD may:

• Offset future benefits

• Halt tax refunds or lottery winnings

• File liens or legal claims and assess costs/interest 

4. Real-World Scenarios & Recommendations

Scenario	Classification	Recommended Actions
You worked part-time during UI weeks and didn’t report it	Non-fraud	Respond to DE 1447, file a waiver (DE 1446UI), appeal (DE 1000M), arrange repayment via offset or myEDD
You continued receiving DI after recovery	Non-fraud	Notify EDD via SDI Online/1‑800‑480‑3287, respond to notice, file DE 1446, appeal if denied
You failed to submit DE 2593 and kept getting DI payments	Possible fraud	Contact EDD immediately, cooperate, appeal, and file waiver if income qualifies
You mistakenly certified UI while employed	Fraud	Expect 30% penalty + repayment; appeal with documentation; partial offset may ease repayment

Conclusion

When the EDD’s notice of potential overpayment arrives, it is crucial to be proactive. Seek out overpayment lawyers to help you respond within the established time frame. Determine if the EDD included a personal financial statement with your notice since it may allow you to receive an overpayment waiver.

If the EDD rejects your request for a waiver, you can appeal the decision, which your attorney can help you with. Legal counsel will give you a better chance of a favorable outcome. Now that you know the different types of overpayment cases and your options, you’re better equipped to handle this situation. Pershing Square Law Firm specializes in assisting those who have received an overpayment notice from the EDD and want to appeal the decision and dispute fraud claims.