Many years ago EDD was not entitled to a lien against PD paid, however, that was changed. My Work Comp Index, 8th ed., page 324 states:
Employment Development Department, Lien of, Contd.
. . . . . . . . . . . .
▫ PD, lien against: Lien allowed against PD where EDD paid for same days as PD was
owed, “resulting solely from the same injury or illness,” L.C. §4904, Unempl
Insurance Code §2629(b)(3); TD provision, (b)(2)
The relevant section of L.C. §4904 is (b)(1)-(2).
If an EE is receiving PD payments and is eligible for EDD, the EDD payments are reduced by the amount of the PD. Again, this was not done until a few years ago.