In Brown v. California Unemployment, the Court of Appeals overturned a lower court’s determination that unemployment benefits wrongfully withheld from Plaintiff by the Employment Development Department (EDD) must be paid at an interest rate of 7 percent. The Court clarified that 10 percent is the correct rate of interest that must be paid by the EDD in cases involving the erroneous withholding of unemployment benefits in accordance with Civil Code Section 3289(b).

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