Disability BenefitsOverpayments
Section § 2735
If someone receives more in benefits than they're supposed to, they have to pay it back unless they didn’t cause the overpayment by lying or withholding important information, and it happened by accident.
Additionally, they won't have to repay if making them do so would be unfair or unjust.
Section § 2735.1
If someone knowingly lies or hides important information to get unemployment disability benefits, and as a result gets paid too much, they have to pay back the overpaid amount plus an extra 30% as a penalty. This extra penalty money will go into the Unemployment Compensation Disability Fund. However, no penalties will be applied for any false statements made before January 1, 1986.
Section § 2735.5
This law states that if the Workers' Compensation Appeals Board either disallows a lien claim made under Section 4903 of the Labor Code, approves it for less money than originally claimed, or approves a compromise that grants less than what was claimed, you can't then claim that this decision led to an overpayment situation.
Section § 2736
If the Employment Development Department finds that someone received too much money in disability benefits, they will figure out how much was overpaid and explain why to that person. They have up to two years from the start of the disability period to do this, unless fraud or lying was involved.
Section § 2737
If someone receives a notice saying they were overpaid benefits, they have 30 days from receiving this notice to appeal to an administrative law judge. During the appeal, the judge can either confirm, change, or cancel the overpayment decision. The decision is final unless the person or the director appeals again within 30 days. If there's a valid reason like a mistake or surprise, the 30-day appeal period might be extended. This law took effect on March 1, 2018.
Section § 2738
This law section explains that the Appeals Board is responsible for reviewing appeals related to overpayment decisions. They will decide if any portion of the overpayment needs to be paid back, based on guidelines from Sections 1336 and 1337.
Section § 2739
This law explains what the Director of Employment Development in California can do to recover overpaid disability benefits. If someone has received more disability benefits than they should have, the director can either file a civil lawsuit or seek a quick court decision known as a summary judgment. For cases involving fraud, lies, or someone not telling the full story, these actions can be started within three years instead of one. If any overpayment is final, meaning no appeals are pursued, a judgment can be issued quickly. The director also has the option to reduce or cancel this court judgment if needed. Additionally, they can subtract the overpaid amount from future disability benefits the person might receive, but this has to happen within six years of the overpayment notice.
Section § 2739.1
This law section explains that if you have a judgment obtained under a specific part of the law, you can record it with the county recorder, and it becomes a lien against the debtor's property in that county. This lien lasts for 10 years and can be renewed for another 10 years if necessary. The state's director can act on the state’s behalf to carry out the execution of the judgment, similar to how other judgments are enforced, and property can be sold as described in the legal code for civil procedures.
Section § 2739.2
This law outlines the steps the department must take once a lien is fully paid off. First, if an abstract of judgment (a formal document of the court's decision) has been recorded and the debt is fully satisfied, the department must file, serve, and record an acknowledgment of satisfaction of judgment. This means officially confirming that the debt is settled. These steps must be completed with the court, the claimant, and the county recorder’s office where the judgment was initially recorded.
If the satisfaction of judgment is recorded, the claimant has to cover the recording costs, which can be collected like other overpayment debts. If the payment was made by check, these actions don't need to happen until the check clears.
Section § 2739.5
This section requires the Franchise Tax Board to help the director recover any excess disability benefits that were mistakenly paid out. They do this by sharing relevant information.
Section § 2740
This law states that if someone receives benefits based on a decision by an administrative law judge or the appeals board, they won't have to pay back those benefits even if there are further appeals.
Section § 2741
This law states that if someone files a lien with the Workmen’s Compensation Appeals Board under the labor code, it will be fulfilled once it's paid as determined by the board or through an approved compromise agreement.
Section § 2742
This law states that the director is responsible for ensuring that any money owed from a court judgment, as described in specific parts of another section, is collected. Once collected, the money should be put back into the fund that originally lost it due to the overpayment.