Can I rectify an overpayment made by mistake without owing it all back?

I’m in a lawsuit with former business partners and in reviewing the financials there is some money that I didn’t claim while on unemployment which I was on when I first started with the company. They are threatening to report me which would look like fraud. It wasn’t and just a mistake. I’ve been told that if I try and rectify it then EDD will just ask for all the money back instead of allowing me to pay back the amount of the mistake.

Asked on August 30, 2011 California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

What you should do is retain a labor attorney concerng the EDD overpayment issue and let him or her rectify the overpayment directly on your behalf insulating you from any fall out. If in fact you made a mistake in failing to report some of the income, then it was a mistake and its return voluntarily before EDD has found out about any problem makes you look honest.

As to the threats that your former business partners are making tp report you to the EDD in Calfornia could very well be perceived as an extortive ruse to benefit themselves in the business dispute that you are in and is illegal.

My sentiment is that you should rectify the overpayment by EDD to you where it is reolved where you return the overpayment via the asisstance of a retained attorney.

Good luck.

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