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CA Unemployment Benefits Revoked?

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spartanvi

Junior Member
What is the name of your state (only U.S. law)? CA

Background: My old employer (ended in Dec 2010) was conserved by the federal gov't and began closing up shop in 2009. I took the opportunity to jump ship (e.g. quit) to look for work elsewhere and complete my college education; my last day of work was at the end of Dec 2010. I applied at similar institutions, but had no luck, so I focused on my studies and applied for FAFSA (student financial aid, which was basically student loans).

The following summer in 2011, strapped for cash to cover tuition, I was referred to a retail job by a friend I met in class. I was officially employed by this shop for 3 months, but I was only given a total of 3 part-time days of work (about $60 after tax). I actually ended up losing money on this job as I was required to purchase a uniform from them ($150 in clothing). The retail manager scheduled me less and less as time went on. Eventually I expressed interest to leave in pursuit of work that actually PAYS, but the manager offered to schedule me on weekends only if I'd stay. I accepted, and continued to get lead on all the while they never scheduled me.

The straw that broke the camel’s back was when a manager called to schedule me on a very specific Sunday. When arrived to clock in, they turned me away. I finally stopped driving out to print out my schedule and stopped calling. I was wasting more time and money (gas) and driving than I was getting paid in wages from the retailer. I was basically working at a loss if I continued to work there. The managers never called me to schedule anymore and I stopped checking with them.

This past January 2012 I began looking for work again in preparation for my graduation. As the definition goes, a person is considered "unemployed" when he's looking for work, but not employed. So by that definition, I decided to check to see if I qualified for EDD benefits while I was searching. Every one of my friends and family insisted that I leave out that I was attending school, so I didn't mention it on the first interview. I am technically a full-time student according to my college. I’m taking 9 units, though I only had 2 evening classes and 1 online class. My class schedule didn't affect my job hunt in the least, I never got so far as to mention my availability to any prospective employers. I was pulling as many leads as I could from my old job to see if one of my former coworkers had work for me. EDD eventually 'approved' my claim and began paying me about 70% of my first employer's wages, which is about double what the retailer was paying me.

A few weeks ago, I got a letter from EDD that a second interview was required and they stopped my benefits. The EDD caller said that my ex-employer (the retailer) disputed my claim stating I quit. I told him they never scheduled me; in my 3 months of employment, they only paid me $70 for 3 days of work. How does someone live off that? The EDD caller said the retailer hired an agent to dispute my case and revealed that they didn't schedule me because I was in school. I was in school, but my hours weren't reduced until well after they stopped scheduling my anyway. I told him when I couldn’t find other work I started doing side work like mowing lawns. The EDD caller twisted my words, “oh so you were making more money doing that than working at the retailer, so you quit?” I didn’t say that, they didn’t schedule me so I mitigated my losses by finding my own work.

At the end of the call, the EDD caller said that my case doesn't seem "compelling" and that I'll likely lose my benefits. In this case, I'm expecting that I'll have to pay back my benefits (about $1500-$2000). If they look further, they'll notice that I'm also currently in school. So am I on the hook for fraud also?

I've been actively looking for work in the LA area since January and am wholly willing to work as was evident by my brief employment at the retailer and my willingness to accept subpar wages for day labor. I do understand that I misrepresented a material fact, but that in light of this new information, EDD should realize it doesn't change my capacity to accept work.
 
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spartanvi

Junior Member
I'm assuming repayment at this point is granted. I only received 3 disbursements and repaying it shouldn't be a problem if I land even the most menial jobs. I'm only concerned about fraud charges; I'm just now reading that school doesn't automatically disqualify one from receiving EDD benefits, so lying about that was obviously a poor choice. All the work I put into school will be for nothing if I have a criminal record.

In any case, it seems EDD and my former employer are trying to determine whether I left or I quit; to which I'd say a little of both. They reduced my hours to nearly nothing. But if the argument is that I filed for EDD after knowingly quit, then that's not my intention. I intended to collect EDD because now, as of January 2012, I was unemployed; searching but couldn't find work. It seems EDD doesn't work that way, they're more interested in the reason for unemployment, not your current status.. I now know that my former employer has the foot part of the claim, so I completely understand why they wouldn't want to support me.
 
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spartanvi

Junior Member
Update. Just got off the phone with EDD.

I told the guy that I believe I misunderstood how EDD worked. I was looking for work starting in January, but when March rolled around without a single callback, I turned to EDD for support because I was technically unemployed. I didn't know that their only concern was the reason why I left my previous employer. I'm certain on the original claim I put that my previous employer gave me too few hours so I left, so I didn't misrepresent this fact. If this is the focus of the dispute, then I'm certain they'll DQ my claim.
 

commentator

Senior Member
Yes, you'll be denied and will be given the opportunity to appeal the denial,thought I really do not see how this is going to help you much. "But I just didn't know or understand!" doesn't mean the denial is overturned. You'll be overpaid by the amount you have received, and if you're lucky there will be no penalties associated with the repayment. You called it right, you misunderstood what unemployment insurance was all about, and you also failed to answer the questions related to drawing benefits correctly. Your former employer has you down as a person who voluntarily quit,and they don't wish to have to pay increased taxes because of your receiving benefits.


You also falsified the answers to the school questions on your claim, regardless of who advised you to do so, it was fraud. That you did not understand what unemployment benefits was for is an okay excuse, it just doesn't absolve you from having to pay the benefits back. If you do this promptly and cheerfully, there will probably not be penalties attached to the repayment.
 

spartanvi

Junior Member
Update.

I got a letter from the OC Superior Court regarding a class action lawsuit against my former employer for - you guessed it - leaving employees on the payroll while not providing us with any hours; so I'm entitled to some chump change on that front. Two days later I received a letter from EDD continuing my claim. Checked my EDD balance and I found a nice disbursement waiting for me. I'll call them in the morning tomorrow to see if that means they ruled in my favor. :)
 

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