Collecting EDD benefits while receiving severance pay - confused about start date
I just got laid off from my tech company after 6 years and I'm trying to figure out this whole unemployment thing. My severance package pays me through July 12th, but I haven't actually been working since April 15th (that was my last day). I've been actively job hunting for almost a month now with no luck. Can I apply for unemployment now while still receiving severance, or do I have to wait until my severance payments stop completely? Also, if I do have to wait, can I backdate my claim to when I actually stopped working rather than when the severance ends? I'm starting to get worried about my finances and want to make sure I understand how this all works. Thanks for any help!
18 comments
Lourdes Fox
You generally cannot collect unemployment while receiving severance in California. EDD considers severance as wages, so you'll need to report that income during certification. Your claim eligibility typically begins after your severance period ends. However, you should still file your claim now - select your last actual working day (April 15th) as your last date of employment, not when severance ends. When certifying, you'll report the severance income which will reduce or eliminate your weekly benefit until severance ends. This establishes your claim in the system though, which is important.
0 coins
Teresa Boyd
•Thanks for explaining! So I should file right away but just report my severance on the certification forms? Will I still get partial benefits if my severance is less than what my unemployment would be?
0 coins
Bruno Simmons
To add to what the previous person said, if your severance payments are less than your potential weekly benefit amount, you might qualify for partial benefits. For example, if your weekly benefit would be $450 but your weekly severance is $300, you could receive the difference of $150. Also, the key thing is whether your severance is paid as a lump sum or as continued wages. If it's a lump sum, the EDD treats it differently than if it's paid out like regular paychecks.
0 coins
Teresa Boyd
•That makes sense. Mine is being paid out in regular installments like a paycheck, not a lump sum. I'll definitely file now and make sure I report everything accurately.
0 coins
Aileen Rodriguez
just fyi my company did somethign similar to me last year. filed right after my last day even tho i was gettin severance for 3 months. didnt get any $ until severance ended but at least my claim was in the system. dont wait to file!!
0 coins
Teresa Boyd
•Thank you! Good to hear from someone who went through the same thing.
0 coins
Zane Gray
When I got laid off in 2024, EDD made a mess of my claim because of severance issues. They initially disqualified me completely saying I wasn't unemployed yet because of severance! Had to appeal and wait FOREVER. My advice - DOCUMENT EVERYTHING! Save your termination letter showing your last day worked vs. severance period. You'll need it if there's confusion.
0 coins
Maggie Martinez
•same thing hapnd to me!!! my claim was stuck in pending for 6 weeks cuz of severance confusion and i couldnt get anyone on the phone to explain. nightmare!
0 coins
Alejandro Castro
I went through this exact situation last year! File your claim now using April 15th as your last day worked. When you certify, answer YES to the question about receiving other income and report your severance. You probably won't get benefits until your severance ends, but at least your claim will be established and ready to go. The most important thing is that you need to be truthful about your severance when certifying. If you don't report it, they'll eventually find out and you'll end up with an overpayment situation which is a nightmare to deal with.
0 coins
Teresa Boyd
•Thanks for sharing your experience. I'll definitely make sure to report everything correctly. Did you have any issues getting through to EDD when you had questions about your claim? I've heard horror stories about the phone lines.
0 coins
Monique Byrd
I've had so much trouble getting through to EDD on the phone lately. I spent two weeks trying to reach someone about my severance situation back in March - kept getting "we're experiencing high call volume" messages. Finally used a service called Claimyr that got me through to an EDD rep in about 20 minutes. Totally worth it for peace of mind. They have a video demo at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their site is claimyr.com if you end up needing to actually speak with someone at EDD.
0 coins
Teresa Boyd
•I've never heard of this service, but I'll definitely keep it in mind if I run into phone issues. Thanks for the tip!
0 coins
Lourdes Fox
One more thing to consider - make sure you're fulfilling the work search requirements even while on severance. Since you mentioned you've been job hunting, keep detailed records of all applications, interviews, networking, etc. You'll need to certify that you're looking for work, and EDD can audit those records later. Also, once you file, set up your UI Online account right away so you can manage everything electronically.
0 coins
Teresa Boyd
•That's really good advice. I've been keeping track of my applications in a spreadsheet, but I'll make sure it has all the details EDD might want to see. I'm definitely eager to get this process started now rather than waiting.
0 coins
Maggie Martinez
wait i thot severance and unemployment were totally different???? my friend got both at same time last year!!! why is everyone saying u cant???
0 coins
Bruno Simmons
•Your friend was likely receiving partial benefits if their severance was less than their weekly benefit amount. Or possibly they received a lump sum severance which is sometimes treated differently. Every situation is unique, but in most cases, full severance payments reduce or eliminate UI benefits for that period. This is why it's important to talk to EDD directly about your specific circumstances.
0 coins
Alejandro Castro
After reading through all these comments, I think the consensus is pretty clear: 1. File now with April 15th as your last working day 2. Report your severance income when certifying 3. Keep detailed records of your job search 4. Expect to receive reduced or no benefits until severance ends 5. Make sure you have your termination letter and severance agreement ready in case there are questions This is exactly what worked for me when I was in your situation. The system is designed to handle this common scenario, but you need to be patient and thorough with your documentation.
0 coins
Teresa Boyd
•Thank you so much for summarizing everything! This really helps clarify what I need to do. I'm going to file my claim today.
0 coins