Can I claim EDD if I accept a one-month temporary position after company closure?
My sister just got some really confusing news at work. Her company is going out of business and laying everyone off, but they offered her a temporary position for ONE MONTH to help sell off inventory. Same job title, same pay, but only for 4 weeks. We're trying to figure out the smartest approach with EDD. Can she file for unemployment now even though she hasn't had her last day yet? Or should she take the temp position and file after it ends next month? I'm worried if she waits, there might be problems with her claim since the company will be completely gone. Has anyone dealt with a company closure situation like this? What's the best strategy to make sure she doesn't miss out on benefits she's entitled to?
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Julian Paolo
She actually has a few options here. If she declines the temporary work, she can file for unemployment immediately after her regular position ends. If she accepts the temporary work, she'll need to wait until that ends to file a regular claim. However, during that month of temporary work, she could potentially file a partial unemployment claim if the hours or wages are reduced compared to her normal schedule. Either way, she should gather documentation about the company closure and her employment history ASAP since the employer is shutting down (which can complicate claims later).
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Madison King
•Thanks for the info! Her hours and pay would be the same during that month - just a hard end date. I never even heard of partial unemployment. So if she takes the temp position, would that affect her weekly benefit amount later? Or would it be calculated based on her regular employment before all this happened?
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Ella Knight
My company did something like this 2 years ago. Take the money n run! Thats what i did lol. company closed but they let me stay 3 extra weeks to help clean out. then i filed fir unemployment and got approved no probs
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William Schwarz
•This is correct advice. The benefit calculation is based on the highest earning quarter in the base period (typically 5-18 months before filing), so the one month of additional work shouldn't negatively impact her benefit amount. In fact, it might help by adding more earnings to her overall history. When she files, she should clearly explain it was temporary work offered after a permanent layoff due to business closure.
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Lauren Johnson
DONT FILE UNTIL AFTER THE TEMP JOB ENDS!!!! My cousin tried filing while still working her last 2 weeks and EDD put a flag on her account and she had to do an eligibility interview and it delayed her payments for like 2 months. NOT WORTH IT!!! The EDD system gets really confused with partial weeks and temp work and you'll just create a headache for yourself.
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Jade Santiago
•Yep, this happend to me to. the system is not smart enuff to handle these kinds of sittuations without creating problems. just wait until completely done working.
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Caleb Stone
If she's being offered the same pay and hours for that month, I recommend she take it while starting to look for a new job. That gives her an extra month of full income before needing to rely on unemployment benefits. When she does file after the temp position ends, she just needs to be clear that the business closed permanently and she was retained temporarily to help with the closure process. The important thing is to answer the EDD questions truthfully and consistently. As an aside, I had a similar situation last year and couldn't get through to EDD for weeks with questions about how to properly certify given my unusual circumstance. I eventually used Claimyr (claimyr.com) to get connected to an EDD rep right away. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. It was helpful for getting my specific questions answered directly by an EDD agent.
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Madison King
•Thank you, that's really helpful! I'll tell her to take the month of work and then file afterward. And thanks for the Claimyr tip - I'll check out that video. Knowing EDD, we'll probably have questions when it's time to file.
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Daniel Price
Make sure your sister gets something IN WRITING about both the layoff and the temporary position! When my employer went under, they didn't give formal documentation and it was a MESS proving to EDD what happened. If the company completely disappears, EDD will have trouble verifying her work history and final day of employment without documentation.
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Lauren Johnson
•THIS!!! So important! My brothers company ghosted during covid and he had to wait like 6 months for his benefits while EDD investigated!!!!!
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Jade Santiago
tell her dont forget to ask about severance pay too. Cuz if she gets severance they might delay her unemploymint benefits and she needs to report that when she files. Alot of people dont know that and get in trouble later for not tellin edd about severance
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Julian Paolo
•Great point about severance. If she receives severance pay, vacation payout, or any other type of continued compensation, she needs to report it when she files her claim. Depending on how it's structured, it might affect when her benefits begin, but it won't make her ineligible overall.
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Madison King
Update: My sister decided to take the 1-month position. We made sure to get everything in writing and her direct manager promised to provide her with a termination letter at the end of the temporary assignment that clearly states the permanent business closure. She also found out they're NOT offering any severance pay to anyone (so at least we don't have to worry about that complication). Thanks everyone for the super helpful advice! It's making this stressful situation a bit easier to navigate.
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William Schwarz
•That sounds like a good plan. Just a reminder that when she does file after the temporary assignment ends, she should have ready: 1) The termination letter, 2) Pay stubs from the past 18 months, 3) Her employment history for the past 18 months with start/end dates, and 4) Any documentation about the business closure if available. This will make the application process much smoother since EDD won't be able to verify with the employer easily once they're completely closed.
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