If you’re new to the subject, receiving a notice of overpayment from the Employment Development Department (EDD) can be stressful. Don’t worry; the guide below details what this means and how to proceed upon receiving such claims. Read the detailed walkthrough below to determine what to do if you were overpaid by the EDD.
Defining Overpayment
First, let’s detail what overpayment means in reference to unemployment insurance and other benefits. An overpayment occurs when you receive benefits that you’re ineligible to obtain.
For example, if you receive too much in unemployment insurance payments, that’s considered an overpayment. Although the definition is simple, the whole topic is a bit more complex. So, let’s discuss how to react when you receive an overpayment notice from EDD.
Accidental Overpayments
As the EDD details on their website, they look at overpayments in two categories: fraud and non-fraud. Suffice it to say that fraud refers to situations in which someone gives the EDD false information with the intent of receiving undeserved benefits. Such cases can result in prosecution and fines. On the other hand, a non-fraud overpayment entails accidentally receiving benefits.
So, if you accidentally receive benefits that you were not eligible for, you’ll have to return the excess payment to the EDD unless you are eligible for a waiver. That said, before repaying anything, it’s vital to understand that receiving notice of overpayment doesn’t mean you’re receiving more than you should be.
It’s possible the EDD would deny you a waiver, in which case you could appeal the denial of waiver and have your case heard by a judge. Typically, you would have 30 days to appeal from the date of the notice of overpayment, but under certain circumstances, a judge may consider a late appeal.
Wrongful Overpayment Claims
Now that you know what to do if you were overpaid by the EDD, let’s dive into how to react to a wrongful overpayment claim. It’s understandable to assume, “The EDD is serious business, so if they say I received too much, they must be right.” Sadly, unjustified overpayment claims are not rare occurrences.
Therefore, you must always examine whether the amount the EDD claims you were overpaid is accurate, or if you were overpaid at all.
The EDD overpayment lawyers at Pershing Square Law Firm are very familiar with unfortunate situations like this. In addition, appealing these wrongful claims can be a laborious process, particularly to complete novices.
For this very reason, overpayment lawyers help people fight unjustified claims, ensuring the process runs smoothly. Hopefully, now that you know the difference between justified and unjustified overpayment claims, you can find a swift solution if you receive a notice in the mail.
