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Anastasia Sokolov

Laid off same day PFL eligibility started - how to handle severance, PFL, and unemployment benefits?

I'm in a total mess right now with my benefits and really need advice! I had my baby in January 2025 and was on Pregnancy Disability Leave (SDI) which just ended last week. Today was supposed to be my first day eligible for Baby Bonding PFL, but my company decided to hit me with a layoff notice THIS MORNING. Talk about awful timing. They're giving me a severance package (3 months pay) but I'm confused about how to handle everything now. I've been researching online but getting conflicting info. Here's what I'm thinking: 1. File for PFL now since the EDD website says termination doesn't affect PFL eligibility if you qualified before being laid off 2. Report my severance payments to EDD during my PFL period 3. After my 8 weeks of PFL ends, then apply for unemployment Does this strategy make sense? Will my severance reduce my PFL benefits? I'm desperate to avoid getting hit with an overpayment notice months from now when I'm already struggling with a new baby. Has anyone navigated this SDI → PFL → unemployment path after being laid off?

same happened to me but diffrent order. got laid off during pregnancy, took SDI, then PFL, then unemployment. you got it right! u can still take PFL if u qualified before layoff. but report ur severance!! dont hide it or they come after u later

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Thank you! Did reporting your severance reduce your PFL payments? I'm trying to budget for the next few months and wondering if they'll just subtract my weekly severance amount from the PFL benefit.

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I've been through this exact situation in 2023. Your plan is correct, but be aware of these important details: 1. When you file for PFL, you must disclose your layoff date and that you'll receive severance. You'll do this on your initial PFL application (DE2508). 2. Depending on how your severance is structured, it may or may not reduce your PFL benefits: - If your severance is labeled as "continuation of wages" it will reduce your PFL benefit dollar-for-dollar - If it's labeled as a "settlement agreement" or "WARN Act payment" it typically won't affect your PFL 3. You'll need to examine your severance agreement carefully to determine how it's classified 4. When you later apply for unemployment after PFL, you'll need to report your severance again if you're still receiving it I recommend calling EDD directly to verify how your specific severance will be treated with your PFL claim. Document everything including who you spoke with.

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This is SO helpful, thank you! I just looked at my paperwork and it says "separation payment" but doesn't specifically mention wages or settlement. I guess I'll need to clarify with HR how they're classifying it for EDD purposes.

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Good luck actually reaching EDD to ask about this!!! I was in a similar situation last year and spent HOURS trying to get someone on the phone. Eventually I found a service called Claimyr (claimyr.com) that got me connected to an actual EDD agent within 15 minutes. They have a video showing how it works: https://youtu.be/DOLxZQb92wM?si=6N1iCQ3a8Cdb2Ay5 It was worth it because the agent confirmed that my severance (which was called a "transition payment") wouldn't reduce my PFL since it wasn't continuation of wages. Definitely double-check your specific situation instead of guessing.

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I've heard about that service too but isn't it just paying to skip the line? I mean I guess if it works it's worth it but it's sad we have to PAY just to get basic answers from our own government agency.

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Yeah it's ridiculous we have to pay, but with a newborn I had zero patience for sitting on hold for 3+ hours just to get disconnected. Time became more valuable than money at that point!

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I GOT SCREWED by EDD because of this EXACT situation!! They told me my severance wouldn't affect my PFL but then 6 MONTHS LATER they sent me an overpayment notice for $4,200!!! Apparently my HR coded my severance as "continuation of wages" without telling me. FIGHT WITH YOUR HR DEPARTMENT about how they're coding your severance payment BEFORE you file your PFL claim!!!! Trust me, dealing with overpayment notices while sleep deprived with a baby is a NIGHTMARE.

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Oh no, this is exactly what I'm afraid of! I'll talk to HR tomorrow and see if they can give me something in writing about how they're reporting my severance to EDD. Did you end up having to repay the full amount?

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Yes I had to pay back EVERYTHING. They even threatened to take my tax refund if I didn't set up a payment plan. EDD doesn't care that your employer miscoded something - they put all the blame on you for "not reporting correctly" even when YOU DIDN'T KNOW how your company was reporting it! The whole system is a joke.

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You're on the right track with your plan, but I want to clarify some important technical details about how severance affects PFL benefits: 1. Severance impact depends on classification: • Continuation of wages/salary - reduces PFL benefits • Lump sum settlement - generally doesn't affect PFL 2. Timing also matters: • Severance paid during Pregnancy Disability Leave - may have already been accounted for • Severance paid during PFL - must be reported with each certification 3. For proper reporting during PFL: • When certifying, answer "yes" to receiving other income • Report the actual severance amount received during each certification period • Include a copy of your severance agreement with your initial PFL application 4. For unemployment after PFL: • There's a one-week waiting period after PFL ends before UI begins • Remaining severance may delay UI eligibility • You must be able and available to work to qualify for UI Keep all documentation showing how and when you reported severance to protect yourself from potential overpayment issues later.

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wat about health insurance during all this?? my friend got laid off during materntiy leave and lost her insurance!!! the babys appts cost her like thousands after that

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my compny laid off 30% of staf while i was on mat leave too!! so cruel. anyway yes u can do PFL after being fired. i had same worry about my severane pay (4 weeks) but my HR person said they reported it like a "one-time bonus" not as regular wages so it didnt afect my PFL. but EDD reduced my unemplyment by the severance amount later so just be redy for that. good luck with the new baby!!

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Thank you all for the advice! I just spoke with my HR department and they confirmed my severance is being classified as a "separation agreement" payment, not as continuation of wages, and they're sending me an email confirming this that I can provide to EDD. I'm going to submit my PFL application today and make sure to disclose the severance information. I'll update this thread once I hear back from EDD about whether my benefits will be reduced or not in case it helps someone else!

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That's excellent news! Make sure to keep that email from HR forever - not just until your PFL claim is processed. EDD can come back with questions up to a year later, and having written documentation from your employer will be your best protection. Good luck with your new baby and the benefit process!

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Congratulations on your new baby! I went through a similar situation last year - got laid off during my maternity leave. One thing I'd add to all the great advice here is to document EVERYTHING with dates and times. Keep screenshots of your PFL application, copies of all correspondence with HR about your severance classification, and records of any phone calls with EDD (including confirmation numbers if you get any). Also, when you file for unemployment after PFL ends, make sure to mention that you were laid off while on protected leave. Sometimes there are additional protections or considerations for people in this situation. The whole process is stressful enough without a newborn - you're doing great by asking these questions upfront instead of figuring it out after the fact!

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