How does a legal settlement affect one's eligibility for California EDD UI?

Part of the settlement is characterized as lost wages (reported on W-2), while the remaining portion is compensatory damages for physical harm and emotional distress (reported on 1099). The fact of the settlement agreement is confidential, as are the terms. I am afraid to run afoul of the confidentiality provisions of the agreement by reporting it to EDD, and if I should report it, I am confused about how to do this. The UI application and instruction materials do not seem to address this situation. I am willing to pay for a consultation on this topic. Thank you!

1 answer  |  asked Feb 19, 2014 8:49 PM [EST]  |  applies to California

Answers (1)

Arkady Itkin
This is completely normal and standard, and you don't need to report this to EDD as long as the settlement is paid as a one-time lump sum rather than over a few months, as if it was recurring income.

Thanks,

Arkady Itkin

posted by Arkady Itkin  |  Feb 19, 2014 9:15 PM [EST]

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