How Soon Does Unemployment Stop if the Employer Appeal is Granted in California?

Your California unemployment benefits are granted and distributed by the California Employment Development Department (EDD). The EDD also handles any appeals, allowing both you and your former employer to protest the benefit determination process. If an appeal overturns your claim, your payments should stop immediately, but if they don’t, you must return the money.

  1. Employer Appeal Rights

    • California employers have the right to appeal the unemployment claims of former employees. An employer has a vested interest in whether you collect benefits because its payroll tax rate depends partly on the number of former employees who go on unemployment. The appeals process gives the former employer a chance to present arguments and evidence to the EDD that you don’t meet the state eligibility requirements.

    When Do the Payments Stop

    • After the EDD approves your claim, your payments begin and they continue even if your employer files an appeal. It takes about a week to 10 days for the administrative law judge that oversees your appeal hearing. You receive a notice by mail from the Appeal Tribunal at the same time as the former employer. If your former employer’s appeal is successful, your unemployment payments should stop immediately.

    If You Receive a Payment Anyway

    • California unemployment benefits are distributed every other week by check by mail or direct deposit. If the appeal decision is made too close to the payment date, you may still receive a payment. If you receive a payment after you receive notice of the repeal of benefits, do not spend it. Instead, contact the EDD immediately to avoid even more overpayments.

    Overpayments

    • An overpayment is money you received from the unemployment insurance program even though you weren’t eligible to receive it. When your claim was overturned by the state, all of the money you may have received before the decision becomes an overpayment. You have to repay that money to the state. You’ll receive a notice of overpayment with options to set up a payment plan. If you don’t pay the money back or set up a payment plan, the state can pursue it in other ways, including diverting your state and federal tax refunds.

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