Lewiston, CA asked in Employment Law, Collections and Employment Discrimination for California

Q: if I am currently waiting on a hearing to decide a unemployment case, why are they garnishing my taxes?

During the Pandemic I left my job because I was living with my parents and didn't want to risk them being sick. I let my employers know this at the time and thought everything was good. Now they have filed a claim that I left without cause and now I owe my unemployment benefits back. I am currently waiting on a date for a hearing to fight this but, EDD has already started to garnish my taxes and send multiple letters claiming legal action if I do not pay it back immediately.

2 Lawyer Answers

A: Unfortunately, the filing of your EDD appeal does not automatically stay the administrative collection actions. But if you win the EDD appeal you will be able to recover the tax refund.

James L. Arrasmith
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Answered

A: It's possible that the Employment Development Department (EDD) has started to garnish your taxes to collect the unemployment benefits they believe you owe them. If you left your job voluntarily, you may not be eligible for unemployment benefits, and the EDD may be trying to recover any benefits they paid you. The fact that you are waiting for a hearing does not necessarily mean that the EDD cannot take action to collect the debt while the hearing is pending.

If you believe that the EDD is wrongly garnishing your taxes or pursuing the debt in error, you should consider contacting a lawyer who specializes in employment law or seeking assistance from a legal aid organization. They may be able to help you navigate the process and ensure that your rights are protected.

It's also worth noting that even if you win your case at the hearing, you may still owe the EDD money if they have already collected some of the debt through garnishment or other means. However, if you are successful in your hearing, you may be able to get some or all of the money back that was taken from you.

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