Saying the COVID-19 pandemic changed a lot of things is an understatement. One of the many facets of our lives the pandemic altered is the job market. With so many employees losing jobs during 2020 due to the pandemic, unemployment benefits had to adjust to help citizens. However, as of September 2021, the pandemic-era compensation will be changing drastically. Read the details below to learn why millions of Californians are losing EDD benefits and whether you’re one of them.
Unemployment and the Pandemic
On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES act is a way of helping individuals struggling to find employment during the pandemic. For instance, part of this act includes new parameters for receiving unemployment benefits.
One form of compensation the CARES Act introduced is Pandemic Emergency Unemployment Compensation, allowing individuals to collect 53 weeks of additional payments if they exhaust their unemployment benefits. Let’s dive into all the policies coming to an end for Californians and exactly when they’ll become inactive.
Pandemic Programs Expanded Benefits — Then Ended
At the peak of the pandemic, multiple federal programs expanded unemployment coverage:
- Pandemic Unemployment Assistance (PUA) covered self-employed and gig workers.
- Pandemic Emergency Unemployment Compensation (PEUC) extended weeks of regular unemployment benefits.
- Pandemic Additional Compensation (PAC) provided supplemental weekly payments.
These federally funded programs expired in September 2021, and California phased out eligibility for these enhanced benefits, leaving many former claimants suddenly without financial support.
Why Benefits Ended
Federal pandemic funding and extensions were temporary. Once federal requirements expired, the state could no longer continue supplemental programs and had to revert to standard unemployment insurance rules. Workers who had relied on the extended programs were no longer eligible under regular UI criteria.
Which Claims Are Changing and When
As the California EDD website details, after September fourth, 2021, four unemployment claim types are no longer eligible for benefits. The list of newly illegible claim types includes the following:
- Pandemic Additional Compensation (PAC)
- Pandemic Unemployment Assistance (PUA)
- Pandemic Emergency Unemployment Compensation (PEUC)
- Mixed Earner Unemployment Compensation (MEUC)
However, September fourth isn’t the only date on which unemployment benefits under the CARES Act come to an end. On September 11, 2021, Federal-State Extended Duration (FED-ED) is officially unpayable, too.
Pandemic-Era Claims Are No Longer Eligible
As noted, federal pandemic programs such as PUA and PEUC are no longer active. California has transitioned back to regular unemployment claim standards, meaning:
- Pandemic benefits are closed to new claims.
- Some claimants must transition to regular UI or have their benefits end.
These changes fall into several key categories that affect eligibility and benefit continuation:
Identity Verification Holds
One of the main reasons benefits are paused or denied is identity verification issues. EDD requires claimants to verify their identity, historically through ID.me or similar systems. Failure to complete or pass this verification can stop payment entirely.
Newer updates to this process aim to reduce delays by simplifying verification within the myEDD portal.
Overpayment Determinations
Another cause for benefit loss is overpayment assessments. When EDD determines a claimant received more benefits than entitled due to errors in reporting wages or eligibility. It issues a notice requiring repayment.
These overpayments can significantly reduce future benefits and lead to collection actions if not resolved. EDD may:
- Withhold tax refunds or lottery winnings.
- File legal actions such as summary judgments or property liens.
Appeals and Denials
When EDD issues a denial or overpayment notice, claimants lose benefits until the issue is resolved. However, claimants have the right to appeal these decisions within strict deadlines.
Claims Most Commonly Affected by Benefit Loss
Not all unemployment claims are being treated the same. Certain categories are far more likely to be reduced, terminated, or converted into overpayment demands.
The claims most frequently affected include:
- Pandemic Unemployment Assistance (PUA) claims
- Claims filed by independent contractors or gig workers
- Claims approved without full income verification
- Claims flagged during fraud prevention audits
- Claims with retroactive certifications
EDD has publicly stated that claims filed during periods of relaxed documentation are now subject to stricter review standards. Many individuals who were approved in good faith are receiving notices stating they were “never eligible,” even though benefits were paid for months or years.
This has resulted in a sharp increase in overpayment determinations, often demanding repayment of tens of thousands of dollars.
Why Timing Matters
One of the most confusing aspects for claimants is timing. Many people ask why their benefits are being challenged now, long after payments stopped.
The answer lies in federal compliance requirements. California was required to complete eligibility reviews and fraud prevention audits after emergency programs ended. These reviews are occurring in waves, which is why claimants are receiving notices at different times.
EDD notices often include strict deadlines to respond, appeal, or submit documents. Missing these deadlines can permanently eliminate the right to challenge a denial or overpayment.
Legal professionals regularly emphasize that timing—not just eligibility—is often the deciding factor in whether a claimant can successfully protect their benefits.
The Most Serious Consequence
Overpayment notices are among the most severe outcomes of post-pandemic reviews. These notices assert that benefits were paid incorrectly and demand repayment, sometimes with penalties.
Knowing Where You Stand
For Californians affected by these changes, knowing exactly where you stand legally and procedurally is essential. Below are steps and rights every claimant should understand.
Understand Your Notices and Deadlines
EDD sends several critical documents that determine your benefit status:
- Notice of Unemployment Insurance Claim Filed (confirms your claim).
- Notice of Determination or Ruling (details eligibility or denial).
- Notice of Overpayment (explains amounts owed).
- Benefit Overpayment Collection Notice (starts the repayment process).
Reading these documents carefully is crucial, as they include deadlines to respond or appeal.
Appeal Within the Required Timeframe
If you receive a denial or overpayment notice, you have 30 days from the mailing date to file an appeal with EDD. You may use the Appeal Form (DE 1000M) or submit a written letter explaining why EDD’s decision was incorrect.
Late appeals may still be accepted if you demonstrate “good cause” for the delay, such as illness or not receiving the notice timely.
Once EDD hears your appeal, if the internal review does not reverse the decision, the case can be forwarded to the California Unemployment Insurance Appeals Board, a quasi-judicial administrative tribunal that oversees contested UI decisions.
Work With the Benefit Overpayment System
If EDD determines you were overpaid, you have options:
- Enroll in Benefit Overpayment Services via myEDD.
- Track past payments and statements online.
Seek Legal Support When Needed
Many claimants face confusion and financial hardship when navigating EDD’s processes. Pershing Square Law provides comprehensive guidance on issues like:
Conclusion
Now that you know why millions of Californians are losing EDD benefits, you should have a clearer picture of whether you still qualify. This guide can help you understand whether your benefits denial is wrongful under these circumstances. So, if you feel you’re wrongfully being denied benefits, contact an EDD lawyer in California to start finding a solution. After all, if you’re eligible for those benefits, you deserve them.