Section § 2735

Explanation

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.

Any person who is overpaid any amount as benefits under this part is liable for the amount overpaid unless:
(a)CA Unemployment Insurance Code § 2735(a) The overpayment was not due to fraud, misrepresentation or wilful nondisclosure on the part of the recipient, and
(b)CA Unemployment Insurance Code § 2735(b) The overpayment was received without fault on the part of the recipient, and its recovery would be against equity and good conscience.

Section § 2735.1

Explanation

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.

If the director finds that an individual has been overpaid unemployment compensation disability benefits because he or she willfully, for the purpose of obtaining unemployment compensation disability benefits, either made a false statement or representation, with actual knowledge of the falsity thereof, or withheld a material fact, the director shall assess against the individual an amount equal to 30 percent of the overpayment amount. For the purpose of collection, an assessment made pursuant to this section may be treated as an overpayment. Assessments collected under this section shall be deposited in the Unemployment Compensation Disability Fund. No penalty under this section shall be assessed with regard to any false statement or representation made prior to January 1, 1986.

Section § 2735.5

Explanation

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.

No claim of overpayment shall be based upon the disallowance by the Workmen’s Compensation Appeals Board of a claim of lien filed under Section 4903 of the Labor Code, or the allowance of such lien for less than the amount claimed, or upon the approval by the said appeals board of a compromise and release agreement providing for the allowance of such lien in an amount less than the claim.

Section § 2736

Explanation

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.

The Director of Employment Development shall determine the amount of the overpayment and shall notify the recipient of the basis of the overpayment determination. In the absence of fraud, misrepresentation or willful nondisclosure, notice of the overpayment determination shall be served on the recipient within two years after the beginning of the disability benefit period for which the overpayment was made.

Section § 2737

Explanation

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.

(a)CA Unemployment Insurance Code § 2737(a) Within 30 days from the date of mailing or serving of the notice of overpayment determination, the person affected may file an appeal to an administrative law judge. The director shall be an interested party to this appeal. The administrative law judge, after affording reasonable opportunity for a fair hearing, shall, unless the appeal is withdrawn, affirm, reverse, modify, or set aside the findings set forth in the notice of overpayment determination. The party and the director shall be notified of the administrative law judge’s decision, together with his or her reasons therefor, which shall be final unless within 30 days from the date of notification or mailing of the decision a further appeal is initiated to the appeals board pursuant to Section 1336. The 30-day period for an appeal to the administrative law judge or to the appeals board may be extended for good cause.
(b)CA Unemployment Insurance Code § 2737(b) “Good cause,” as used in this section, shall include, but not be limited to, mistake, inadvertence, surprise, or excusable neglect.
(c)CA Unemployment Insurance Code § 2737(c) This section shall become operative on March 1, 2018.

Section § 2738

Explanation

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.

The Appeals Board shall review an appeal from an overpayment determination as provided in Sections 1336 and 1337 and determine what amount, if any, shall be recovered.

Section § 2739

Explanation

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.

The Director of Employment Development, subject to this article, may do any or all of the following in the recovery of overpayments of disability benefits:
(a)CA Unemployment Insurance Code § 2739(a) File a civil action against the liable person for the recovery of the amount of the overpayment within one year after any of the following, or, in cases where the individual has been overpaid benefits due to fraud, misrepresentation, or nondisclosure as described in Section 2735.1, within three years of any of the following:
(1)CA Unemployment Insurance Code § 2739(a)(1) The service of the notice of overpayment determination if the person affected does not file an appeal to an administrative law judge.
(2)CA Unemployment Insurance Code § 2739(a)(2) The mailing of the decision of the administrative law judge if the person affected does not initiate a further appeal to the appeals board.
(3)CA Unemployment Insurance Code § 2739(a)(3) The date of the decision of the appeals board.
(b)CA Unemployment Insurance Code § 2739(b) Initiate proceedings for a summary judgment against the liable person. However, this subdivision applies only where the director has found, pursuant to Section 2735, that the overpayment shall not be waived because it was due to fraud, misrepresentation, or willful nondisclosure on the part of the recipient. The director may, not later than three years after the overpayment became final, file with the clerk of the proper court in the county in which the claimant resides, a certificate containing all of the following:
(1)CA Unemployment Insurance Code § 2739(b)(1) The amount due, including the assessment made under Section 2735.1, plus interest from the date that the initial determination of overpayment was made pursuant to Section 2735.
(2)CA Unemployment Insurance Code § 2739(b)(2) A statement that the director has complied with all of the provisions of this article prior to the filing of the certificate.
(3)CA Unemployment Insurance Code § 2739(b)(3) A request that judgment be entered against the liable person in the amount set forth in the certificate.
The clerk, immediately upon filing of the certificate, shall enter a judgment for the State of California against the liable person in the amount set forth in the certificate.
For purposes of this subdivision only, an overpayment is final and due and payable after one of the following:
(A)CA Unemployment Insurance Code § 2739(A) The liable person has not filed an appeal pursuant to Section 2737.
(B)CA Unemployment Insurance Code § 2739(B) The liable person has filed an appeal to an administrative law judge and a decision of the administrative law judge upholding the overpayment has become final.
(C)CA Unemployment Insurance Code § 2739(C) The liable person has filed an appeal to the appeals board and the decision of the appeals board upholding the overpayment has become final because the liable person has not sought judicial review within the six-month period provided by Section 410.
(c)CA Unemployment Insurance Code § 2739(c) Reduce or vacate a summary judgment by filing a certificate to that effect with the clerk of the proper court.
(d)CA Unemployment Insurance Code § 2739(d) Offset the amount of the overpayment received by the liable person against any amount of disability benefits to which they may become entitled under this division within six years of the date of service of the notice of overpayment determination.

Section § 2739.1

Explanation

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.

An abstract of judgment obtained pursuant to subdivision (a) or (b) of Section 2739, or a copy thereof, may be recorded with the county recorder of any county. From the time of recording, the judgment shall constitute a lien against all real or personal property of the liable person in that county owned by the liable person at the time, or which the liable person may afterwards, but before the lien expires, acquire. The lien shall have the force, effect, and priority of a judgment lien and shall continue for 10 years from the time of recording of the abstract of judgment obtained pursuant to subdivision (a) or (b) of Section 2739, unless sooner released or otherwise discharged.
The lien may, within 10 years from the date of recording of the abstract of judgment or within 10 years from the date of the last extension of the lien in the manner provided, be extended by recording a new abstract in the office of the county recorder of any county. From the date of the recording, the lien shall be extended for 10 years unless sooner released or otherwise discharged.
Execution shall issue upon the judgment upon request of the director in the same manner as execution may issue upon other judgments. Sales shall be held under the execution as prescribed in the Code of Civil Procedure. In all proceedings under this section, the director or his or her authorized agents may act on behalf of the state.

Section § 2739.2

Explanation

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.

(a)CA Unemployment Insurance Code § 2739.2(a) If an abstract has been recorded as provided in Section 2739.1 and the lien, including any interest, costs, and penalty has been satisfied in full, the department shall, pursuant to Section 724.050 of the Code of Civil Procedure do all of the following:
(1)CA Unemployment Insurance Code § 2739.2(a)(1) File an acknowledgment of satisfaction of judgment with the court.
(2)CA Unemployment Insurance Code § 2739.2(a)(2) Serve an acknowledgment of satisfaction of judgment on the claimant. Service shall be made personally or by mail.
(3)CA Unemployment Insurance Code § 2739.2(a)(3) Record an acknowledgment of satisfaction of judgment in the office of the county recorder where the abstract of judgment is recorded.
(b)CA Unemployment Insurance Code § 2739.2(b) If an acknowledgment of satisfaction of judgment is recorded, the cost of recording shall be an obligation of the claimant and may be collected from the claimant in any manner provided by law for the collection of the benefit overpayment.
(c)CA Unemployment Insurance Code § 2739.2(c) If payment is made by check, any action specified in subdivision (a) shall not be required until the check has been paid by the financial institution upon which it was drawn.

Section § 2739.5

Explanation

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.

Notwithstanding any other provision of law to the contrary, the Franchise Tax Board shall aid the director in the recovery of overpayments of disability benefits through the exchange of information.

Section § 2740

Explanation

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.

No person shall be liable for the amount of benefits received where the benefits were paid pursuant to an administrative law judge’s decision which affirmed an initial determination or in accordance with a final decision of the appeals board, regardless of any further appeal.

Section § 2741

Explanation

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.

Any claim of lien filed with the Workmen’s Compensation Appeals Board under the provisions of Section 4903 of the Labor Code shall be fully discharged and satisfied by payment of the amount of such lien allowed by the said appeals board under the provisions of Section 4904 of said code or the amount specified in any compromise and release agreement filed and approved by the said appeals board pursuant to Sections 5000 through 5004 of said code.

Section § 2742

Explanation

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.

The director shall enforce collection of any judgment obtained by him or her under subdivision (a) or subdivision (b), or both, of Section 2739. Amounts collected under this section shall be deposited in the fund from which the overpayment was made.