Unemployment Overpayments and Penalties

A benefit overpayment is when you collect unemployment benefits you are not eligible to receive. The most common reasons for an overpayment are:

Overpayments are classified as either fraud or non-fraud.

How We Notify You

We will send you a Notice of Overpayment (DE 1444) or a Notice of Potential Overpayment (DE 1447) if we think you were overpaid.

Notice of Overpayment

If we determine you collected unemployment benefits you were not eligible to receive, we will send you a Notice of Overpayment (DE 1444). The Notice of Overpayment (DE 1444) will include:

Appeal Rights

You have the right to appeal an overpayment determination. You must submit your appeal in writing within 30 days of the mailing date on the Notice of Overpayment (DE 1444).

You can still submit an appeal after the 30-day deadline, but you must provide the reasons why you missed the appeal deadline. An Administrative Law Judge (ALJ) will review your reasons for missing the deadline. If the ALJ decides that you had good cause for missing the appeal deadline, the ALJ will continue to review your appeal. Follow the instructions in your Notice of Overpayment if you want to appeal.

For more information about appealing an overpayment, see Unemployment Insurance Appeals.

Notice of Potential Overpayment

We will send you a Notice of Potential Overpayment (DE 1447) when our records show that you may have been paid for benefits you were not eligible to receive. For example, we may have conflicting information about your wages or need additional information from you. You must respond to the Notice of Potential Overpayment within 15 days so we can make an accurate decision about your benefits.

Note: If you didn’t receive an Application for Overpayment Waiver (DE 1446UI) with your Notice of Potential Overpayment (DE 1447), we determined that you aren’t eligible for a waiver. EDD staff determine this before a Notice of Potential Overpayment is issued.

Overpayment Waiver

If we determine the potential overpayment was not your fault and was not due to fraud, you may qualify for an overpayment waiver. We will send you an Application for Overpayment Waiver (DE 1446UI) with the Notice of Potential Overpayment (DE 1447).

You must complete and return the Application for Overpayment Waiver (DE 1446UI) to be considered for a waiver. We will review your information to determine if repaying the overpayment would cause you extraordinary hardship.

Waiver Determination

We review your gross family income and other financial information to determine if you qualify for a waiver. Gross income is your income before taxes and deductions.

We will review your income for the past six months. You will qualify for a waiver if your average monthly income was less than or equal to the amounts in the Family Income Level Table for that time period.

Family Income Level Table for July 1, 2023 through June 30, 2024
Number of People in Family Gross Monthly
Income
1 $1,509
2 $2,338
3 $3,130
4 $3,771
5 $4,487
6 $5,204

For families of seven or more, add $716 for each additional person.

We prepare the Family Income Level Table each State Fiscal Year following the requirements in Title 22 of the California Code of Regulations, Section 1375.

For questions regarding an Overpayment Waiver, contact Unemployment Customer Service at 1-800-300-5616.

Repay Your Overpayment

We will mail you a Benefit Overpayment Collection Notice (DE 8344JUDR) 30 days after we mail a Notice of Overpayment (DE 1444) or Notice of Denial of Benefits and Overpayment (DE 1480), or when an appeal is denied.

You cannot repay your overpayment online until you receive a Benefit Overpayment Collection Notice (DE 8344JUDR) with your Claimant ID and Letter ID.

For more information, including your payment options, visit Benefit Overpayment Services.

If you do not repay your overpayment on time, the money can be deducted from future unemployment, disability, or Paid Family Leave benefits. Other actions we take include:

Additional Information

If you have questions about your unemployment overpayment, contact us.

For questions about an overpayment for disability or Paid Family Leave (PFL) benefits, visit Benefit Overpayments and Penalties.

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