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Patrick, Esq.
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If someone worked as a 1099 contractor but still collected

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If someone worked as a 1099 contractor but still collected unemployment from State of Ca. If they know they did wrong but now want to right it.How do they come clean with the state edd. What would be the consequences? Would they be charged with a crime?
Is there a process, or perhaps even some sort of amnesty if the $ is repaid?
Good evening and thank you for entrusting me to assist you. My name is XXXXX XXXXX I will do everything I can to answer your question.

There is unfortunately no protocol for these situations, since the law assumes people will comply with it, nor is there any formal amnesty program. That's the bad news.

The good news is that if all the unlawfully received benefits are immediately repaid, the odds of criminal charges being filed are extremely low. The EDD cares first and foremost about getting its tax payer money back--once it does, it will be far less inclined to refer the matter out to the DA for prosecution. Moreover, even if the DA did decide to press charges, the fact that the defendant voluntarily came forward and paid back everything they owed would be looked at very favorably. in negotiating a plea bargain.

If the defendant was a first time offender under these circumstances, they'd almost certainly be eligible for a diversion program, through which the defendant pays a fine and performs community service in exchange for having the criminal charges dropped.

As noted, there is no protocol for repayment. Typically, the claimant will want to send a letter explaining the reason for the overpayment (for example, they didn't know that 1099 earnings needed to be reported) and explaining that the check is intended as full reimbursement for what was erroneously paid. You'll want to specify the specific benefit weeks that your repayment is reimbursing, include your social security number in the letter and send it to the Employment Development Department. You'll also want to make the check out to the same.

Following these measurres and the possibility of criminal charges being filed, much less an actual conviction, are very low.

Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you. Very best wishes and kindest regards.
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