But It's Unfair! Tips on Overpayments
From CalWORKs | Welfare Resources
Download PDF Fact Sheet
- An Overpayment? But it was the county’s mistake!
- Ask for a state fair hearing within 90 days of the date on your notice of CalWORKs overpayment, if it will be hard for you to repay the money. Argue you should not have to pay back the cash aid because it was not your fault. (This does not apply to Food Stamps overissuances.)
- But my worker says it’s the law that I repay!
- The worker cannot cancel the overpayment, but an Administrative Law Judge can. That’s why you must ask for a hearing if you want to challenge the overpayment.
- What do I do at the hearing?
- You will need to make an "unfairness" argument. In legal terms, it's called "Equitable Estoppel." This means that fairness should stop the county from asking you to repay. To win, you must show all five facts listed below:
- The county had all the information it needed to make the correct calculation of your monthly benefits.
- The county made a mistake.
- You did not know about the county’s mistake, and thought the aid you got was the right amount.
- You depended on the county to pay you the right amount of benefits, and you can’t pay back the overpayments.
- Your hardship in having to repay is greater than the county’s interest in getting the overpayments back. (The judge will look at the amount of the overpayment and how long the county’s mistake lasted.)
- Example: Gina started work, and reported her earnings, but her aid didn't change. She called her worker, who told her the aid payment was right because of the income deductions Gina gets. Gina used the extra money to buy school clothes and supplies for her children. Four months later, Gina gets a notice of $500 overpayment. Gina argues that the worker knew of her earnings, didn't change her benefits, and told Gina the higher benefits were right. Gina can’t afford to pay it back because her entire check and earnings goes to rent, utilities and food. She brings her monthly expense budget to the hearing.
- Need More Help? - For more legal help and information, you can use [1] to contact a local legal advocate.
