Can you collect unemployment if you get a severance package in California?

This is so helpful thank you. So even though I'm getting 10 weeks of severance pay, I can still start my weekly claims right away? I just want to make sure I understand correctly before I file.

^ This is correct for California. I went through the same thing last year and filed immediately after my last day. Got approved no problem. The severance was never an issue.

Worth noting though — you HAVE to report the severance when California EDD asks about any additional income you received. Don't skip that part or you could end up with an overpayment issue later.

Wait there's a waiting week? So even if I'm approved I won't get paid for week 1? I didn't know that.

Yeah the waiting week thing is real, first week is always unpaid basically. So you definitely don't want to sit around waiting to file.

omg i didn't know about the waiting week either when i filed. wish someone had told me that before i waited 2 weeks after my last day to apply lol

I've been trying to call EDD all morning with zero luck. I'll check out that Claimyr link, thanks for sharing it. I really just want to talk to someone official before I submit anything.

Claimyr worked for me too. Got a callback within a few hours after days of not being able to get through. The EDD agent I spoke to was actually really helpful once I got through.

does claimyr actually work or is it just one of those things that sounds good? genuinely asking bc i've been trying to reach edd for 3 weeks straight

@above — it worked for me. I was skeptical too but at that point I had nothing to lose. Got a callback the same day.

Absolutely, I would never try to hide it. I just wasn't sure if it would automatically disqualify me or not. Sounds like it shouldn't as long as I report it correctly.

This. I cannot stress enough how important it is to just be honest on your claim. An overpayment notice is SO much more stressful than just reporting things accurately upfront.

Agreed. And if EDD does have any questions about the severance after you file, they'll send you a notice explaining what they need. Don't panic if that happens, it's fairly routine.

In California, severance paid as a lump sum or as part of a separation agreement is NOT counted as wages for UI purposes. It doesn't reduce your weekly benefit amount. This is different from, say, vacation pay that gets paid out — that CAN affect things differently. Severance specifically is generally not deducted from UI benefits in California.

Oh wow okay that's actually really good to know. I always assumed it would affect the benefit amount. Good thing I asked.

Yeah California's treatment of severance is genuinely more favorable than people expect. The confusion usually comes from people mixing up rules from other states or outdated information.

Adjudication doesn't necessarily mean you did something wrong — it just means EDD needs to manually review something before approving your claim. It could be triggered by the severance disclosure or just a random flag. Keep certifying your weekly claims while you wait! Don't stop just because it's in adjudication.

I didn't know I was supposed to keep certifying! I stopped after week 3 because I assumed I should wait for resolution. Oh no. Is there a way to go back and certify missed weeks?

Yes you can usually certify missed weeks — there's an option in UI Online to certify for past weeks. Do it ASAP before the window closes. And seriously call EDD to let them know about the missed certifications too.

I've been trying to call for three weeks. Can not get through no matter what I try. Completely exhausted at this point.

Okay at this point I'll try literally anything. Thank you for the suggestion. Six weeks in adjudication sounds like a nightmare, I'm only 8 weeks in... wait.

lol @ 'only 8 weeks in' the bar for california edd is absolutely underground

Ha seriously. But I did eventually get through and got it resolved. Hang in there.

This is actually an important distinction. If your severance is paid as 'salary continuation' where you remain on the payroll, California EDD may treat those payments differently than a true separation package. In that case, EDD might consider you still employed during those weeks and delay the start of your UI eligibility. I would STRONGLY recommend calling EDD or getting official guidance before filing in that scenario.

That's what I was afraid of. My HR specifically used the term 'salary continuation' so yeah it might be the complicated version. I'll need to actually talk to someone at EDD about this before I file.

Yeah salary continuation is genuinely different and worth getting clarity on. Don't just guess on that one — the difference between 'severance package' and 'salary continuation' can affect your benefit start date significantly.

RIGHT?? The EDD website is so hard to navigate and the answers are always so vague. That's why I came here to ask real people.

The EDD website has gotten a bit better but yes, for nuanced questions like severance it's still very unclear. The UI Online portal at least walks you through the questions when you actually file, which helps.

This is literally why forums like this exist. EDD's official resources are written for lawyers not actual unemployed people trying to figure out what to do

This breakdown is exactly what I needed. I'm in category 1 — lump sum based on years of service — so it sounds like I'm good to file now and just report it.

Great summary. Bookmarking this for when people ask me this question because I end up explaining this to coworkers constantly since my whole team got laid off together last year.

What about commission payouts after separation? Like if your employer pays out commissions earned before you left but the check comes a few weeks later?

Good question — commissions for work performed before your separation date are generally reportable as wages for the week you receive them. So if a commission check lands during a week you're certifying, you'd report that income for that week. It might reduce your benefit for that specific week but shouldn't disqualify you overall.

I hadn't even thought about my employer potentially contesting the claim. My separation seemed pretty amicable but I guess you never know. How long does the employer usually have to respond?

Employers typically have about 10 days to respond to EDD after your claim is filed. If they don't respond in time, it usually goes in your favor. If they do contest it, you'll get a notice and have the opportunity to provide your side.

This might be why my claim went to adjudication! My employer contested it even though I was clearly laid off. I wish someone had warned me about this possibility when I first filed.

Not a dumb question at all. Yes, unemployment benefits ARE taxable income at the federal level. California does NOT tax UI benefits at the state level though. When you file your initial claim, you can elect to have 10% withheld for federal taxes, which I'd recommend doing so you don't get hit with a surprise tax bill at the end of the year. Severance is taxed as regular income by both federal and state.

oh interesting so i should definitely opt in to the federal withholding. thanks for clarifying that

I did not know California doesn't tax UI benefits. That's actually a small silver lining in all of this chaos

I was in a similar situation — try Claimyr (claimyr.com). I know it sounds weird but it's designed specifically to help you get through to an actual EDD agent when normal calling isn't working. There's a video explaining it at https://youtu.be/JmuwXR7HA10 — when I was deep in adjudication hell it was the only thing that actually got me a callback. The agent I talked to was able to look at my file and tell me exactly what was stuck.

I am going to try this right now because i literally have nothing to lose at this point. Nine weeks is absolutely not okay

Also consider contacting your state assembly member's office. Most of them have constituent services staff specifically to help with stuck EDD claims. I've seen that move a claim that's been sitting for weeks within a few days.

The assembly member thing is a great tip i never would have thought of that. Trying both of these tomorrow morning.

That's reassuring to hear. I think I'm overthinking this. I'll just describe it accurately and let EDD make the call.

That's actually the right approach. EDD agents have seen every type of severance arrangement and they know how to classify them. Your job is to accurately report what you received, not to pre-interpret it for them.

This is so good to hear! And congrats on finally getting through to EDD. Going to file my claim today too based on everything I've learned here.

Love a success update in these threads. Good luck to everyone filing!

this thread has been more useful than anything on the actual EDD website. Saving it.

I did sign a release as part of my package! I was actually a little worried about that. Really glad you mentioned this.

Correct. The release of employment claims has no bearing on your UI eligibility. Those are completely separate legal frameworks. Good info to clarify.

I had the exact same worry when I signed mine. The release feels scary but it really doesn't touch your unemployment rights.

Great news! Make sure you certify your first weekly claim on time — you'll get an email from EDD with your certification schedule. And remember week 1 is the unpaid waiting week so don't be alarmed when that shows $0.

Already put a reminder in my calendar for the certification date. I feel so much more prepared now than I did yesterday. Really appreciate everyone who took the time to respond.

Good luck! Most straightforward layoff claims with disclosed severance get processed within 3-4 weeks in my experience. Fingers crossed for you.

Happy for you OP. Still waiting on my own claim but glad this thread helped someone get moving in the right direction