EDD application timing with WARN Act pay - should I apply now or wait until payments end?
Just learned that my tech startup is shutting down operations in California and I'm part of a mass layoff. The company informed us that we're covered under the WARN Act, so they'll continue paying our regular salaries for 60 days (until mid-June 2025). HR specifically told us NOT to file for unemployment until after the WARN Act payments end. I get that I won't receive any actual unemployment benefits until my regular paychecks stop, but I'm wondering if I should still submit my initial application now? I've heard EDD can take weeks to process claims, and I don't want to be stuck without income if there's a gap. Has anyone here dealt with WARN Act situations and EDD timing? What's the best strategy to ensure a smooth transition from WARN Act payments to unemployment benefits?
21 comments

Nick Kravitz
File your claim IMMEDIATELY! Don't wait until June! HR departments always say this because it benefits the company, not you. Your claim effective date determines your benefit year and base period calculation. If you wait until June, you might lose out on some wages in your calculation period. You can (and should) apply for benefits as soon as you receive notice of termination, even if you're receiving WARN Act pay. Just be sure to report those WARN payments when you certify each week - you won't get EDD payments during that time, but your claim will be established and ready to go once the WARN pay ends.
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Samantha Johnson
AuthorThat makes a lot of sense! I was wondering why HR was pushing so hard for us to wait. Will EDD automatically start paying me after my WARN Act payments end, or will I need to do something else at that point?
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Hannah White
i got warn act pay last year when my manufacturing plant closed... waited til it ended to apply for edd like HR said and HUGE mistake!! took like 8 weeks to get my first payment after that. wish someone told me earlier
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Michael Green
Exactly the same happened to me when my retail store closed! HR is NOT looking out for your interests - they're protecting the company. Always file as soon as you know your job is ending.
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Mateo Silva
Your HR department is giving you incorrect information, probably because they don't want their UI account charged earlier than necessary. California specifically addresses this on their website: you can file a UI claim while receiving WARN Act payments. You'll just need to report these payments when you certify, which will likely disqualify you from receiving benefits during that period due to excessive earnings. But your claim will be established and processed, so when your WARN pay ends, you can immediately start receiving UI benefits without delay. When you file, make sure to accurately report your last day of work (which would be the day you stopped working, not when WARN payments end). Also clearly indicate you're receiving WARN Act payments when asked about severance or continued payments.
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Samantha Johnson
AuthorThanks! I'll definitely file now. One last question - will the WARN Act payments affect the amount of my weekly benefit when I start receiving unemployment after June?
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Mateo Silva
WARN payments won't affect your weekly benefit amount (WBA) at all. Your WBA is calculated based on your highest quarter of earnings during the base period (typically the 12-month period ending just before the last completed calendar quarter before you file). So file now to lock in that calculation period. Just remember, when you certify every two weeks during your WARN period, you'll need to report those payments. You'll answer "yes" to the question about receiving other income, and then indicate it's separation pay or WARN Act pay. You'll also need to report that you're not looking for work because you're still technically employed - but once your WARN period ends, you'll start your work search and report that accordingly.
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Samantha Johnson
AuthorThis is super helpful - thank you! I feel much more confident about how to handle this now.
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Victoria Jones
If your trying to reach EDD to ask about WARN act stuff, good luck! I spent 3 weeks trying to get through to them because I had a similar situation with my aerospace company last year. Started calling at exactly 8:00am every day and just got the "we're receiving too many calls" message. Finally found Claimyr (claimyr.com) and they got me through to an EDD rep in less than an hour. They have this demo video that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Worth it because the EDD rep actually knew about WARN Act rules and straightened everything out for me.
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Samantha Johnson
AuthorI've been worried about that too - seems like actually getting through to EDD is half the battle! I'll check out the link if I have any issues getting through. Thanks for sharing!
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Michael Green
Just to add what everyone else is saying - don't trust HR for unemployment advice! Their interests are not aligned with yours! I worked in HR for 6 years and we ALWAYS told people to wait to file claims because it helped our UI tax rates... I'm not proud of it now but that's how companies operate.
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Cameron Black
omg this is so shady but not surprised at all!! companies always trying to save pennies at our expense!!! my cousin works in hr and confirms they do this ALL THE TIME!!
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Jessica Nguyen
i went thru this exact situation last yr. WARN act pay for 60 days then unemployment. made the mistake of waiting to file and had 6 weeks with NO INCOME while EDD processed the claim. file now so it's already set up when your warn payments end!!!
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Hannah White
ya and be careful with the "continue looking for work" question during certification. When ur getting WARN pay u need to answer differently than when ur unemployed. i messed this up andit took forever to fix
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Nick Kravitz
One more tip - keep detailed records of your WARN Act notification and all communications with your employer. You'll want documentation showing when you were notified, the expected end date of your employment, and your payment schedule. EDD sometimes requests this information, especially if there's any confusion about your last day of work versus when your payments end.
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Mateo Silva
Great advice. I'd add that you should also print out your final pay stubs when they come in, particularly the ones showing your WARN Act payments. These will be extremely helpful if EDD has questions about your income during the certification process.
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Cameron Black
Guys I'm confused about something related to this... If you're getting WARN Act pay does that mean you're still technically employed? Like do you still have health insurance during those 60 days? My friend just got laid off from her job and they're giving her WARN pay but she's panicking about losing her health insurance right away.
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Mateo Silva
Yes, typically during a WARN Act period, you remain an employee of the company for benefits purposes. Most companies continue health insurance during this time. Your friend should check her WARN notification letter or contact HR to confirm, but it would be unusual to cut off benefits during this period since the whole purpose of the WARN Act is to provide a transition period.
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Samantha Johnson
Thank you everyone for the helpful advice! I'm definitely going to file my EDD claim right away instead of waiting until June. I'll make sure to accurately report my WARN Act payments during certification and keep all documentation from my employer. Really appreciate all the insights - this could have been a costly mistake if I'd followed HR's advice!
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Nick Kravitz
Glad we could help! The system isn't always intuitive, and most people only deal with unemployment a few times in their lives. Just remember to start your work search activities as soon as your WARN period ends and document everything. Good luck with your claim and future job search!
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Jason Brewer
This thread is exactly what I needed to see! I'm in a similar situation with my company shutting down and giving us WARN Act pay. Our HR team told us the same thing - wait until the payments end before filing. But after reading all these responses, I'm definitely filing my claim this week. It's crazy how HR departments consistently give advice that benefits the company's UI tax rates rather than helping employees. Thanks everyone for sharing your experiences - this could have saved me weeks of waiting without income!
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