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Law Offices of Jeremy K. Lusk, Inc.

What are EDD Differential payments?

There can be confusion with regards to temporary disability payments made by the insurance company, and benefits paid by the Employment Development Department (EDD or state disability).  Consider the following scenario:  I had a work injury and the case was denied.  I then began receiving Employment Development Department benefits since I had no income.  The insurance company then accepted my claim and is now paying me temporary disability benefits.  These benefits are lower than what Employment Development Department was paying.  It is not enough money to pay my bills, and I was wondering if I can start receiving Employment Development Department benefits again.  

Employment Development Department has guidelines where they will make payments to an injured worker if their weekly rate is higher than the workers’ compensation rate or temporary disability rate.    These are called differential payments.  The Employment Development Department will pay the difference between temporary disability rate and their rate.  This is legal and is a valid option. 

Oftentimes, the temporary disability weekly rate from the insurance company will be higher than the Employment Development Department rate.  If that is the case, then you do not want to receive any other benefits from Employment Development Department.  This will be referred to as “double dipping” or receiving payments from dual sources.  The workers’ compensation system does not allow this. If this happens Employment Development Department will seek to be paid back from the injured worker once the case resolved.  In the worst case scenario, an injured worker who is receiving temporary disability and gives false information to Employment Development Department to obtain benefits from them, then they may face criminal prosecution. 

Of course, if an injured worker is not receiving any temporary disability benefits, than they can apply for Employment Development Department benefits. 

If you have questions about your workers' compensation injury and want to talk to an attorney in Fresno, please call 559-408-7436 or fill out the form to the right.

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