Under UI Code 1329.5(e), "Except in the event of fraud, if it is determined that any information provided by the claimant on an affidavit is erroneous, no penalty or refund of benefits shall be imposed on the claimant for the period prior to the calendar week in which an employer provides subsequent wage information."
Based upon the above, your husband can protest the penalty, obtain a hearing, explain that the error was not intended to induce a payment other than that to which he was entitled, and that he contacted EDD as soon as he realized his error -- thereby demonstrating that there was no intent to defraud. Therefore, the court should not deny benefits.
Hope this helps.
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