EDD eligibility issue after reporting severance - interview scheduled!
Just got hit with an eligibility issue on my UI claim and I'm panicking a bit. My company eliminated my position last month and I filed for unemployment. I certified for the first time this Sunday and instead of getting paid, I received a message saying 'we detected something that can make you ineligible for benefits.' They've scheduled an eligibility interview for next week. The only thing I can think of is that I honestly reported my severance package (about $5,800 before taxes). Has anyone dealt with this before? What kinds of questions should I prepare for? I've been a W2 employee paying into the system for years, so I'm pretty confused about what could make me ineligible. I'll appeal if necessary, but hoping it doesn't come to that. Any advice on how to handle the phone interview?
26 comments


Avery Flores
This is actually a standard procedure when severance is reported. EDD needs to verify a few things during your interview: 1) That your separation was truly due to position elimination (no fault of your own), 2) How the severance was paid (lump sum or continuing payments), and 3) If any of it counts as wages for UI purposes. Bring your severance agreement document and final pay stub. They'll likely ask if you're available for full-time work despite receiving severance. Just answer honestly - if it was a one-time payment that's already been paid, it shouldn't disqualify you, just potentially delay your first payment.
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Caden Nguyen
•Thank you so much! That makes me feel better. It was a lump sum payment, and I've already received it. Should I mention that I've been actively applying for jobs since the layoff? I'm definitely available for full-time work.
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Zoe Gonzalez
Omg same thing happened 2 me last year!! EDD is sooo frustrating. They make u wait weeks just to tell u what u already know. My severance was way less than urs tho.
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Caden Nguyen
•Did your benefits eventually get approved? How long did it take after the interview?
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Ashley Adams
I went through exactly this in January. The severance package triggers an automatic interview. The main issue they're checking is whether your severance is considered ongoing wages (which can reduce your weekly benefit amount) or a lump sum payment for past service (which doesn't affect your benefits). In my case, I had a $7,200 severance that was paid all at once. The interviewer asked: 1. Was I terminated or did I quit? 2. Was the severance a one-time payment or spread out? 3. Did my severance agreement have any restrictions about working elsewhere? 4. Was I available and looking for full-time work? After I answered these questions and provided my severance letter, they approved my claim within 48 hours. Just be honest and you should be fine if your situation was a legitimate layoff.
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Caden Nguyen
•This is REALLY helpful, thank you! I'll make sure I have my severance agreement ready. Mine also doesn't have any restrictions on finding new work. Fingers crossed it goes as smoothly as yours!
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Alexis Robinson
Don't worry too much, but be prepared with documentation. While reporting severance is honest and correct, EDD's system automatically flags it. During your interview, the key points they'll assess are: - Was your job loss truly no fault of your own? - Is your severance structured as wages (weekly payments) or as a lump sum? - Are you available for and actively seeking work? Bring documentation of your layoff (termination letter stating position elimination), severance agreement, and recent job search activities. If you received a lump sum severance with no strings attached, this shouldn't affect your eligibility - it's just a verification step.
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Aaron Lee
•This is kinda misleading tbh. My friend got her benefits reduced for the weeks that her severance "covered" even though it was a lump sum. EDD calculated it as if it was weekly wages. Depends on the interviewer sometimes.
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Chloe Mitchell
The EDD system is SO BROKEN!! I had the EXACT same issue when I got laid off from tech last year and had a severance. Spent WEEKS trying to call them to explain but couldn't get through. By the time I had my interview scheduled, I was already behind on rent. EDD doesn't care that we have bills to pay while they take their sweet time "investigating" things we've already honestly reported!!! 😡😡😡
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Ashley Adams
•While the process is frustrating, it's actually required by law that they verify income and separation circumstances. The real problem is their understaffing and outdated phone systems making it impossible to reach them when you have questions before your scheduled interview.
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Michael Adams
I had trouble getting through to EDD when I had a similar issue. Try using Claimyr - it helped me actually get through to a representative instead of hearing that annoying "we're experiencing high call volume" message over and over. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Totally worth it to get my questions answered before my interview rather than stressing for days.
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Caden Nguyen
•I hadn't heard of this service before. Did you get good information when you finally got through to EDD? I'm willing to try anything at this point because waiting until next week is making me super anxious.
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Zoe Gonzalez
mine took 6 weeks to clear up even after the interview!! make sure u answer the phone when they call cuz they only try once!!
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Caden Nguyen
•Wow, 6 weeks?? That's crazy. Thanks for the tip about answering - I'll make sure my phone is charged and I'm ready when they call. Did they call exactly at the scheduled time or was it random?
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Avery Flores
To directly answer your question about what might make you ineligible: 1. If you were fired for misconduct (doesn't sound like your case) 2. If you quit without good cause (again, not your situation) 3. If you're not available for full-time work 4. If your severance agreement includes continued pay that counts as wages 5. If you're not actively seeking employment Based on what you've shared, it sounds like the interview is just standard procedure when severance is reported. If your position was eliminated and you reported everything accurately, you should be fine. Just be clear about the lump sum nature of your severance and your availability for work.
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Caden Nguyen
•Thank you for breaking this down! My separation letter clearly states "position elimination" so hopefully that helps. And I've been applying to jobs almost daily since being laid off, so I can definitely show that if needed.
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Ashley Adams
One more tip - during your interview, stick to answering exactly what they ask. Don't volunteer extra information or try to explain things they haven't asked about. EDD interviews are very standardized and the claims specialists are mainly checking boxes on their forms. Be polite, direct, and have your documents ready. If they determine your severance doesn't affect eligibility, they'll process your payments quickly after the interview. Good luck!
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Chloe Mitchell
•THIS!! I made the mistake of rambling during my interview and it just led to more questions and confusion. Stick to the facts they ask for!
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Luca Russo
I work for a nonprofit that helps people navigate UI claims, and I see this situation frequently. The good news is that reporting your severance was absolutely the right thing to do - failing to report it would have been much worse. EDD's system automatically flags any severance reporting for review, but this doesn't mean you're ineligible. The interview is typically just to verify: 1) your separation was involuntary, 2) the severance structure (lump sum vs. ongoing payments), and 3) your work availability. Since you mentioned position elimination and a one-time payment, you should be fine. Just bring your termination letter, severance agreement, and be ready to confirm you're actively job searching. Most of these interviews result in approval within a few days.
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Isabella Silva
•This is so reassuring to hear from someone who works in this field! I was worried I did something wrong by reporting the severance, but you're right that hiding it would have been much worse. I have all the documents you mentioned ready to go. Quick question - when you say "actively job searching," do they want to see specific proof like applications I've submitted, or is it more about confirming I'm available and looking?
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Taylor Chen
Hey! I went through this exact same thing about 8 months ago when my marketing position was eliminated. Got the same scary message after my first certification and totally panicked too! But honestly, it turned out to be pretty routine once I understood what was happening. The interview was actually much less intimidating than I expected - the EDD representative was professional and just went through a standard checklist. They asked about my layoff reason, confirmed my severance was a lump sum (mine was around $4,200), and verified I was looking for work. The whole call took maybe 15 minutes. I had my benefits approved and received my first payment about 3 days later. Just have your paperwork ready and answer their questions directly. You've got this! The fact that you reported everything honestly from the start shows you're doing everything right.
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Miguel Harvey
•Thank you so much for sharing your experience! It's really helpful to hear from someone who went through the exact same situation. 15 minutes doesn't sound too bad at all - I was imagining some intense hour-long interrogation. The fact that you got approved so quickly after gives me a lot of hope. I've been keeping track of all my job applications in a spreadsheet, so hopefully that shows I'm serious about finding work. Really appreciate you taking the time to reassure me!
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Natasha Orlova
I'm going through something very similar right now! Just got laid off from my retail management position two weeks ago and reported my severance package ($3,200) when I filed. Haven't gotten my interview scheduled yet but seeing all these responses is making me feel so much better about the process. It sounds like as long as you were honestly laid off and the severance was a one-time payment, the interview is just a formality. Thanks everyone for sharing your experiences - this community is such a lifesaver when dealing with EDD's confusing system!
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Elijah Knight
•Welcome to the club nobody wants to be in! But seriously, it sounds like you're in a really similar situation to what everyone else has described here. The fact that your severance was also a lump sum and you were laid off (not fired for cause) should work in your favor. I'm still waiting for my interview next week, but reading all these experiences has me feeling much more confident. Definitely keep documenting your job search activities - seems like that's something they ask about. Hope we both get through this process smoothly! This community really is amazing for navigating all of EDD's quirks.
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Rebecca Johnston
I went through this exact same process about 6 months ago and completely understand your anxiety! When I got that "something that can make you ineligible" message after reporting my $4,800 severance, I was convinced I'd somehow messed up my claim. But it really is just standard procedure when any severance is reported - their system automatically triggers the interview requirement. During my phone interview, the EDD representative was actually pretty straightforward and professional. They asked: 1) Why I was separated from work (layoff vs. firing vs. quitting), 2) Whether my severance was paid as a lump sum or ongoing payments, 3) If there were any work restrictions in my severance agreement, and 4) Whether I was available for full-time work and actively job searching. The whole interview took about 20 minutes, and I had my benefits approved within 2 business days afterward. My biggest advice is to have your termination letter and severance agreement documents ready to reference, and keep your answers clear and direct. Since you were laid off due to position elimination and received a lump sum payment, you should be in good shape. The fact that you reported everything honestly from the start definitely works in your favor!
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Zara Mirza
•Thank you so much for sharing your detailed experience! It's incredibly reassuring to hear that the interview was straightforward and professional rather than some kind of interrogation. I was really worried I had somehow made a mistake by reporting my severance, but it sounds like being honest upfront was definitely the right call. I love that you broke down the exact questions they asked - that gives me a much better idea of what to expect. I have my termination letter (clearly states "position elimination") and severance agreement ready to go. The 2-day approval timeline after your interview gives me a lot of hope too! Really appreciate you taking the time to walk through your whole experience.
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