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Benefit Overpayments and Penalties

A benefit overpayment is when you collect unemployment, disability, or Paid Family Leave (PFL) benefits you are not eligible to receive. It is important to repay overpayments to avoid collection and legal action.

How We Notify You

Notice of Potential Overpayment

We 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.

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.

Overpayment Waiver

To be considered for a waiver, you must complete and return the Personal Financial Statement (DE 1446). We will review your information to determine if repaying the overpayment would cause you extraordinary hardship. To learn how we determine if you qualify for a waiver, visit Benefit Overpayment FAQs.

Note: You cannot request a waiver if we did not mail you a Personal Financial Statement (DE 1446).

Unemployment

If you qualify for an unemployment overpayment waiver, we will send you a Notice of Overpayment Waiver with the amount that was waived. If you do not qualify for a waiver, we will send you a Notice of Overpayment with the reason why the waiver was denied. If you disagree with the Notice of Overpayment, submit an appeal in writing within 30 days.

Disability or PFL

If you qualify for a disability or PFL overpayment 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 Denial of Overpayment Waiver with a Notice of Overpayment and an Appeal Form.

Notice of Overpayment

If we determine you collected benefits you were not eligible to receive, we will mail you a Notice of Overpayment or a Notice of Denial of Benefits and Overpayment. The notice will include:

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

If you did not qualify for a waiver, your notice will also include the reason why the waiver was denied.

You have the right to appeal an overpayment determination. You must submit your appeal within 30 days of the mailed date on the Notice of Overpayment or the Notice of Denial of Benefits and Overpayment. You can download the Appeal Form (DE 1000M) (PDF) or use the copy included with the overpayment notice.

If you don’t have the Appeal Form, you can write us a letter stating that you want to appeal the overpayment determination. Your letter must include your name, address, Social Security number, and why you disagree with the determination.

Important: Mail your appeal or letter to the return address on the overpayment notice. 

If your appeal is approved, you will receive a notice from the California Unemployment Insurance Appeals Board (CUIAB). If your appeal is denied, you will receive a notice from the CUIAB and will continue to receive notices for the collection of the overpayment.

For more information, visit California Unemployment Insurance Appeals Board.

Repay Your Overpayment

You cannot repay your overpayment online until you receive a Benefit Overpayment Collection Notice (DE 8344JUDR) with your Claimant ID and Letter ID. We will mail you the Benefit Overpayment Collection Notice 30 days after we mail the Notice of Overpayment or the Notice of Denial of Benefits and Overpayment, or when an appeal is denied.

Note: You can repay your overpayment by check before receiving the Benefit Overpayment Collection Notice. Review your Notice of Overpayment for instructions.

Payment Options

Benefit Overpayment Services

The best way to manage your overpayment is with Benefit Overpayment Services. By enrolling, you can: 

  • Make a payment.
  • View your balance and payments.
  • Set up an agreement to make monthly payments.

Pay with Benefit Overpayment Services

Make a One-Time Payment

If you do not enroll in Benefit Overpayment Services, you can make a payment online.

  • Pay by Automated Clearing House debit (no fee).
  • Pay by credit or debit card (fee applies) through ACI Payments, Inc.

Make a One-Time Payment

Note: ACI Payments, Inc. administers our credit and debit card program (with a convenience fee). The convenience fee is not paid to the EDD.

Pay by phone with a credit card (fee applies) through ACI Payments, Inc. 

  1. Call toll-free 1-800-2PAYTAX (1-800-272-9829).
  2. Choose option 3.
  3. Enter jurisdiction code 1577 and follow the recorded instructions.

Note: ACI Payments, Inc. administers our credit and debit card program (with a convenience fee). The convenience fee is not paid to the EDD.

Pay by mail using a personal check, cashier’s check, or money order payable to the EDD and include your Claimant ID.

Mail payments to:

Employment Development Department
Attention: Cashier Benefit Recovery
PO Box 826806
Sacramento, CA 94206-0001

Penalties

If you do not repay your overpayment on time, the money can be deducted from future unemployment, disability, or PFL benefits. We can also:

  • Withhold your federal and state income tax refunds.
  • Withhold your state lottery winnings.
  • Withhold other money the state owes you.
  • File a claim against you in court.
  • Charge you court costs and interest.
  • Record a lien on your property.

For more information, visit:

Benefit Overpayment Services

The best way to manage your overpayment is through Benefit Overpayment Services.

Contact Us

Questions about your overpayment: Call 1-800-676-5737 during normal business hours.

Questions about your claim or to request a copy of your overpayment notice:

  • Unemployment: 1-800-300-5616
  • Disability: 1-800-480-3287
  • Paid Family Leave: 1-877-238-4373