Can I collect EDD after receiving severance pay in January 2025?
Just got the news yesterday that my department is shutting down and my position will be eliminated in January 2025. My company is offering a severance package (still don't know the details). I also work part-time at a local coffee shop (about 15 hours/week). I'm really confused about how unemployment works with severance pay. Can I still apply for EDD benefits after receiving severance? Do I have to wait until the severance runs out? And does my part-time job disqualify me completely? Any advice would be so appreciated because I'm starting to panic about my finances already.
21 comments


Amara Chukwu
You can definitely apply for unemployment after receiving severance, but there are some important things to know. In California, severance pay doesn't disqualify you from receiving EDD benefits, but it can affect WHEN you can start receiving them. Your part-time job will reduce your weekly benefit amount, not disqualify you completely. The EDD uses a formula where they subtract a portion of your part-time earnings from your weekly benefit amount. Make sure you report all income accurately when certifying!
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Liam O'Sullivan
•Thank you so much! So should I apply right when I get laid off or wait until after I receive the severance payment? I'm worried about messing up the application and getting denied.
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Giovanni Conti
when i got laid off they gave me 8 week severence and i still applied for edd right away. u should do that too. they'll ask about severence on the application just be honest. my part time gig reduced my benefits but i still got some money from edd every week
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Liam O'Sullivan
•That's good to know! Did you have to do anything special on your certification about your severance? I'm worried I'll fill something out wrong and mess up my claim.
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Fatima Al-Hashimi
I'm going through this exact situation right now. Here's what I can tell you based on my experience: 1. Apply for EDD as soon as your job ends, even if you're getting severance. 2. Report your severance pay when you certify for benefits. 3. Your part-time job will reduce your weekly benefit amount but NOT disqualify you completely. 4. You'll need to certify for benefits every two weeks and report ANY income from your part-time job. The most important thing is being 100% honest about all income. EDD will eventually find out about any unreported income through tax records and that can lead to overpayment notices and penalties.
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Liam O'Sullivan
•This is super helpful, thank you! So EDD considers severance as income during the weeks I receive it? I'm still confused about how that works with the certification process.
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NeonNova
Exactly right! When you certify every two weeks, you'll report your severance pay for the specific weeks you receive it. For example, if you get a lump sum severance on January 15, you'd report that amount for that certification period. For your part-time job, you report those earnings for each week worked. Some companies distribute severance over multiple pay periods while others give one lump sum. The way your company handles it affects how you'll report it. FYI - getting through to EDD with questions can be nearly impossible due to high call volumes. I used Claimyr (claimyr.com) to connect with an agent when I had questions about my severance reporting. They have a good video demo of how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Don't panic about your application - the online system walks you through everything step by step.
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Dylan Campbell
•u still have to pay taxes on that severence too. EDD doesnt take any out automatically so put some $$ aside or your gonna be screwed at tax time
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Sofia Hernandez
CAREFUL!!! My cousin got in huge trouble when he didn't report his severance correctly. EDD made him pay back all the benefits PLUS penalties! The whole system is designed to trap people and take back money. Just saying be super careful with how you report everything!!!!
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Amara Chukwu
•While accuracy is important, the system isn't designed to trap people. Most issues occur when people don't report income or don't respond to EDD notices. If you're honest and responsive to any questions from EDD, you should be fine. They understand that mistakes can happen, but they do expect claimants to be truthful about all income.
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Dmitry Kuznetsov
I went thru a similar situation in 2023 when my job at the hospital closed. Here's what I learned: - Severance does NOT disqualify you from unemployment - Your part-time job earnings will reduce your weekly benefit but NOT disqualify you - You must CERTIFY for benefits every 2 weeks and honestly report ALL income - Make sure you satisfy the work search requirements each week The way EDD calculates partial benefits is: if you earn less than your weekly benefit amount, they subtract a portion of your earnings and pay you the difference. If you earn more than your weekly benefit amount in a given week, you won't receive benefits for that week but your claim stays open.
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Liam O'Sullivan
•Thank you! This makes a lot more sense now. Do I need to look for full-time work even though I have a part-time job? That part confuses me.
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Dmitry Kuznetsov
Yes, you still need to meet the work search requirements even with your part-time job. Since you're considered partially employed, EDD expects you to be looking for full-time work to replace your lost income. Typically, you need to make at least 3 work search activities per week. These can include: - Applying for jobs - Submitting resumes - Going to job interviews - Registering with placement agencies - Networking for employment opportunities Keep a detailed record of all your work search activities in case EDD requests verification. They sometimes do random eligibility interviews to check that you're meeting the requirements.
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Giovanni Conti
•u can also count stuff like updating ur resume or takin classes related to ur job skills for the work search requirement. thats what i did sometimes when there weren't many jobs to apply for
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Liam O'Sullivan
This has all been so helpful! I think I understand now - I'll apply for EDD as soon as my job ends in January, be honest about my severance and part-time earnings when I certify, and make sure I'm doing enough job searching activities each week. One last question - is there a minimum number of hours I need to work at my part-time job to keep my claim active? I might have the opportunity to pick up more hours at the coffee shop while I'm job hunting.
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Amara Chukwu
•There's no minimum hours requirement to keep your claim active. Your claim stays open for 12 months regardless of how much you work at your part-time job. The only thing that changes is how much benefit you receive each week based on your part-time earnings. If you pick up more hours and earn more than your weekly benefit amount, you'll receive $0 for that week, but your claim remains open. Then if your hours decrease again, you can start receiving benefits again without having to file a new claim. Just keep certifying every two weeks even if you don't receive payment - that keeps your claim active.
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Dylan Campbell
im in same boat right now lol. my manager said my last day is feb 1 and im gettin 4 weeks severence. nobody told me nothin about how unemployment works with this stuff. thanks for askin this question im learning too!
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NeonNova
•Make sure you request a written notice of your layoff from your employer before your last day. This document is important to have when filing for unemployment as it helps establish your eligibility. If possible, get it on company letterhead stating your last day of work and the reason for separation (i.e., layoff due to position elimination). This can help avoid delays if EDD contacts your employer to verify details.
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CyberSamurai
Great advice from everyone here! I went through something similar last year and want to add a few practical tips: 1. Start gathering your employment documents NOW - pay stubs, tax forms, etc. You'll need these when filing your claim. 2. If your company offers any career transition services or job placement assistance as part of the severance package, take advantage of those. They often count toward your work search requirements. 3. Consider setting up direct deposit for your EDD payments when you apply. It's faster than waiting for debit cards or checks to arrive. 4. Screenshot or save confirmation pages when you certify online. Sometimes the system has glitches and having proof you submitted on time can save you headaches later. You're smart to plan ahead - January gives you time to get organized instead of scrambling after your last day. The combination of severance, part-time work, and EDD benefits should help bridge you to your next full-time opportunity. Don't panic, you've got this!
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Zainab Mahmoud
•This is exactly what I needed to hear! I've been so stressed about this whole situation but reading everyone's responses makes me feel like I can handle it. I'm definitely going to start collecting all my employment documents now - that's such good advice. And I didn't even think about the career transition services potentially counting for work search requirements. Thank you for taking the time to share all these practical tips, it really means a lot to someone who's never had to deal with unemployment before!
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Paige Cantoni
As someone who's been through the EDD process multiple times, I want to emphasize one thing that hasn't been mentioned yet - keep DETAILED records of everything! Create a simple spreadsheet or notebook to track: - Your severance payment dates and amounts - Every hour worked at your part-time job with exact earnings - All your work search activities (job applications, interviews, networking events) - Screenshots of your certification submissions I learned this the hard way when EDD requested documentation during an eligibility review. Having everything organized saved me weeks of stress trying to reconstruct my records. Also, if you haven't already, create your EDD online account now so you're familiar with the system before you actually need to file. The interface can be confusing when you're already stressed about losing your job. One more tip: if your severance comes as a lump sum, ask your HR department exactly which pay period it will be reported under for tax purposes. This helps you report it correctly on the right certification weeks. Good luck!
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