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. Keep reading to learn how you can appeal an EDD overpayment for important information.
Classifications of Overpayment
A benefits overpayment is when you collect unemployment benefits that you aren’t eligible to receive. The most common reasons behind overpayments are that you incorrectly reported your wages or collected benefits weeks after you were no longer eligible to receive them. The EDD classifies overpayments into two categories: fraud and non-fraud.
- Fraud: The EDD determines that you intentionally withheld or provided false information. You will have to pay the overpayment amount and a 30 percent penalty.
- Non-fraud: If the overpayment wasn’t your fault, it’s non-fraud. And the EDD will send a notice telling you if you need to repay the overpayment.
How the EDD Notifies You
The EDD will send you a Notice of Potential Overpayment (DE 1447), and they may request additional information to determine if you received an overpayment or the exact amount of the overpayment. If they determine the potential overpayment was not your fault (non-fraud), you may qualify for an overpayment waiver.
What To Do: File an Appeal
If you don’t receive an overpayment waiver or disagree with the overpayment determination, you have appeal rights! And fortunately, we can explain how you can appeal an EDD overpayment. You must submit a written appeal within 30 days of the initial overpayment determination.
You can fill out an official appeal form (DE 1000M) or write a letter stating that you want to appeal the determination. In addition, you must include your full name, address, social security number, and why you disagree with the determination.
If the EDD approves your appeal, they will notify you. However, if they deny your appeal, you will continue to receive notices for the collection of the overpayment amount.
Who Can Help You?
Did you know that a significant number of overpayments issued by the EDD are unjustified? And when the EDD wants you to pay back your benefits, expensive penalties can apply. That’s why you need an experienced EDD overpayment lawyer to help you! Pershing Square Law Firm is a group of lawyers very familiar with the EDD overpayment issues. They can help you challenge the overpayment determination and avoid repayment! You can call us at (800) 696-1206 for a free consultation.