Article 5. Overpayments of California Unemployment Insurance Code >> Division 1. >> Part 2. >> Chapter 2. >> Article 5.
Any person who is overpaid any amount as benefits under this
part is liable for the amount overpaid unless:
(a) The overpayment was not due to fraud, misrepresentation or
wilful nondisclosure on the part of the recipient, and
(b) The overpayment was received without fault on the part of the
recipient, and its recovery would be against equity and good
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.
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
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 mailed to or personally served on the
recipient within two years after the beginning of the disability
benefit period for which the overpayment was made.
Within 20 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 any such 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unless the appeal is withdrawn, affirm, reverse, modify, or set aside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 reasons therefor, which shall
be final unless within 20 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 20-day period for an appeal to
the administrative law judge or to the appeals board may be extended
for good cause.
"Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.
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.
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) 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
(1) The mailing or personal service of the notice of overpayment
determination if the person affected does not file an appeal to an
administrative law judge.
(2) The mailing of the decision of the administrative law judge if
the person affected does not initiate a further appeal to the
(3) The date of the decision of the appeals board.
(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) 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) A statement that the director has complied with all of the
provisions of this article prior to the filing of the certificate.
(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) The liable person has not filed an appeal pursuant to Section
(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) 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) Reduce or vacate a summary judgment by filing a certificate to
that effect with the clerk of the proper court.
(d) Offset the amount of the overpayment received by the liable
person against any amount of disability benefits to which he or she
may become entitled under this division within six years of the date
of mailing or personal service of the notice of overpayment
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
(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) File an acknowledgment of satisfaction of judgment with the
(2) Serve an acknowledgment of satisfaction of judgment on the
claimant. Service shall be made personally or by mail.
(3) Record an acknowledgment of satisfaction of judgment in the
office of the county recorder where the abstract of judgment is
(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) 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.
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
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
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.
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.