Overpayment of benefits occurs when the Employment Development Department (EDD) wants you to pay back benefits they don’t think you’re eligible to receive. However, you have the right to fight back and state why you disagree with the EDD. This article sets out how to appeal an EDD overpayment.
How to Access Benefit Overpayment Services
Before enrolling in Benefit Overpayment Services, you must first create a myEDD account and select a login verification method. For more information on what you need to create a myEDD account, visit myEDD FAQs. To create a myEDD account:
- Visit myEDD.
- Select Create Account.
After you’ve created your myEDD account, log in to myEDD and select Benefit Overpayment Services to begin your enrollment.
To enroll in Benefit Overpayment Services, you need your:
- Claimant ID
- Letter ID
- Date of Birth
- Email Address
Classifications of Overpayment
A benefit overpayment is when you collect unemployment benefits you are not eligible to receive. The most common reason for an overpayment is that you incorrectly reported your wages when certifying for benefits and were overpaid benefits.
An overpayment occurs when you receive unemployment benefits you were not eligible. The EDD classifies overpayments into two main categories: fraud overpayment or non-fraud overpayment.
Fraudulent Overpayment
If we determine that you intentionally gave false information or withheld information, the overpayment is considered fraud. Under California law, the EDD can make a claimant pay a penalty if the claimant makes a “willful false statement” to the EDD in an effort to obtain benefits. In these cases:
- 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.
- Mandatory repayment of the overpaid amount.
Non-Fraud Overpayment
In practice, the EDD regularly imposes false statement penalties when a claimant accidentally made a mistake on one of the many complex forms sent by the EDD, and sometimes when the claimant was telling the truth. If the overpayment wasn’t your fault, it is considered non-fraud. You will receive a notice telling you if the overpayment must be repaid, and what to do if you were overpaid by the EDD sets out the repayment and appeal options that follow. In these cases:
- You may be required to repay the overpaid amount.
- You might be eligible for a waiver if repayment would cause financial hardship.
How the EDD Notifies You
If you are overpaid the EDD will send you a Notice of Overpayment (DE 1444) or a Notice of Potential Overpayment (DE 1447)
Notice of Overpayment
A Notice of Overpayment is a document that the EDD sends to claimants when the EDD believes the claimant received benefits incorrectly. The notice will tell you how much the EDD thinks you need to pay back. If you do not appeal the Notice of Overpayment and get the decision reversed, you will have to pay this money back to the EDD.
Why Does the Notice of Overpayment Mention a Penalty?
Under California law, the EDD can impose a penalty of up to 30% of the overpaid benefits if they believe you made a willful false statement to receive benefits. In addition, they may disqualify you from receiving future benefits for 5 to 15 weeks, even years later.
What To Do: File an Appeal
If you disagree with our decision to deny your benefits or require you to pay back overpaid benefits, you have the right to appeal. If you appeal, an Administrative Law Judge (ALJ) will review your case.
- Submit a Written Appeal:
Use the appeal form (DE 1000M) included with your notice or download it here:
Download Appeal Form (DE 1000M). If you don’t have access to the form, a letter stating your intent to appeal is acceptable. Include:
- Your full name.
- Address.
- Phone number
- Social Security number.
- The reason you disagree with the determination.
- Name and mailing address of any person representing you
- Details, documents, and evidence supporting your appeal
- Any request for language assistance or special accommodations
- The decision you are appealing
- File Within 30 Days
You must submit your appeal in writing within 30 days of the mailing date on your Notice of Determination and/or Ruling (DE 1080CZ) or Notice of Overpayment (DE 1444CT). You can still submit an appeal after the 30-day deadline, but you must provide the reasons why you missed the deadline. An ALJ will review your reasons for missing the appeal deadline. If the ALJ decides that you had good cause for missing the appeal deadline, the ALJ will continue to review your appeal.
Appeal the Notice of Determination
To appeal, download the Appeal Form (DE 1000M) or use the copy included with your Notice of Determination or Notice of Overpayment. If you don’t have access to an appeal form, you can submit a letter to appeal.
Mail Your Appeal
Mail your appeal form or letter to the address at the top of your Notice of Determination. If you need the mailing address or a copy of your Notice of Determination or Notice of Overpayment, contact Unemployment Customer Service at 1-800-300-5616, send us a message through your UI Online account, or visit an America’s Job Center of California (AJCC) location.
Keep the Appeal Statement Brief
You can simply write:
“I disagree with the EDD’s decision. I believe I am eligible and should not have been assessed an overpayment.”
What Happens After You Appeal?
After you file an appeal, the next procedure is:
- Your case goes to the California Unemployment Insurance Appeals Board (CUIAB).
- You’ll receive a Notice of Hearing by mail or email.
- Hearings are usually by phone, but in-person hearings are available by request.
- You can track your appeal online using the MyAppeal system:
Register at cuiab.ca.gov/myappeal
If the information you provided in your appeal does not change the EDD’s decision, The EDD will send your appeal to the California Unemployment Insurance Appeals Board, also known as the Office of Appeals. You will receive a letter from the Office of Appeals acknowledging your appeal. This notice will include more information about the appeal process.
The Office of Appeals will then schedule a hearing to consider your appeal. You will receive a Notice of Hearing by mail at least 10 days in advance, which will include the date, time, and location of your hearing, as well as additional information about the appeal process.
For information about what to expect at your hearing and how to prepare, please visit the California Unemployment Insurance Appeals Board website.
Withdrawing an Appeal
You may withdraw your appeal at any time before the ALJ issues a decision on your case by calling or writing to the Office of Appeals.
Arguments You Can Make at the Hearing
- You Were Eligible for Benefits
- EDD’s decision was incorrect (e.g., you quit for good cause).
- You Did Not Make a Willful False Statement
- You misunderstood a question or made an honest mistake.
Or the EDD misinterpreted your response or relied on inaccurate info.
- Request a Waiver of Overpayment
- If the overpayment wasn’t your fault and repaying it would cause financial hardship, you may qualify for a waiver of overpayment.
- Bring documentation (income, expenses, budget) to show hardship.
After Your Hearing
After your hearing, the Office of Appeals will mail the ALJ’s written decision to you, your employer, and the EDD. This may take several weeks. If you are found eligible, you will only be paid for periods for which you have certified, and you must have met all other eligibility requirements. If you are still disqualified, your notice will contain instructions on filing a second-level appeal.
What If You Lose Your Hearing?
You may appeal again or seek legal help. For guidance, check: Legal Aid at Work – How to Prepare for Your Appeal Hearing.
Second-Level Appeals
If you disagree with the ALJ’s decision, you may file a second-level appeal with the California Unemployment Insurance Appeals Board. Visit Filing an Appeal | California Unemployment Insurance Appeals Board for more information.
If You Disagree With the Notice
Overpayment notices are not always correct, and when the EDD asks you to repay benefits, penalties can be added to the balance. Checking the figure and the reason given is worth doing before you agree to repay anything.
If you are unsure whether the amount is right, or how to frame an appeal, speaking with an attorney can help you understand your options. Our benefit overpayment appeal team works with claimants on notices, waiver requests, and hearings.
