EDD holding weeks 'under review' while receiving severance - can I collect both?
Just got laid off from my tech job 4 weeks ago with a 9-week severance package ($3,800 biweekly). I filed for unemployment right away thinking I could collect both, but now I'm confused about what's happening with my claim. My UI Online account shows: Week 1 says 'excessive earnings', Week 2 shows 'waiting period served', but Weeks 3 and 4 are stuck on 'under review' with zero explanation! I've certified on time for everything. I thought California allowed you to collect unemployment while receiving severance? Is EDD going to deny all my weeks until my severance runs out? Has anyone dealt with this situation before? I'm getting anxious because I need to plan my finances...
20 comments
Ava Rodriguez
Severance and unemployment is always confusing! In California, severance payments are considered wages for unemployment purposes. When your severance exceeds your weekly benefit amount, EDD considers you to have 'excessive earnings' for that week, which is why your first week showed that. The system automatically deducts your waiting period week (unpaid). The 'under review' status for weeks 3-4 is common when the system detects you're receiving other income. You'll need to report your severance pay on your certifications. EDD will calculate if your severance amount disqualifies you from receiving benefits during those weeks.
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Dmitry Smirnov
•Thanks for explaining! But I'm still confused - I DID report my severance on all my certifications. If they're going to disqualify me anyway, why are weeks 3-4 'under review' instead of just saying 'excessive earnings' like week 1? And how long will this review take? I'm worried they'll make me wait 9 weeks until my severance ends before paying anything.
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Miguel Diaz
same thing happened to me last yr! my weeks stayed 'under review' for like 3 wks then suddenly changed to 'excessive earnings'. they dont tell u anything lol. u probably wont get paid till ur severance runs out sorry
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Zainab Ahmed
•Not necessarily true. It depends on how the severance is paid out and the amount compared to your weekly benefit amount. My company paid lump sum and EDD only counted it for one week.
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Connor Gallagher
THE SYSTEM IS DESIGNED TO CONFUSE YOU! I went through this exact nightmare in January. Those "under review" weeks will sit there FOREVER unless you talk to a specialist who can override it. Regular tier 1 reps can't help. I wasted 6 WEEKS trying to figure this out and couldn't get through to anyone who knew what they were doing. EDD's computer system doesn't properly handle severance reporting - it flags your account for manual review but then NOBODY ACTUALLY REVIEWS IT unless you call and push them!!
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Dmitry Smirnov
•Oh no, that sounds awful! How did you finally get through to a specialist? I've tried calling several times but can't get past the automated system.
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AstroAlpha
Since your weeks are stuck in review status, you definitely need to speak with an EDD specialist. The key distinction is how your severance is being paid out. If it's biweekly payments like you mentioned, EDD typically treats each payment as wages for those specific weeks. But there are exceptions based on your separation agreement and weekly benefit amount. I was in a similar situation last month and used Claimyr (claimyr.com) to get through to EDD after trying for days on my own. They have a system that calls EDD for you and connects you when an agent is available. Saved me hours of frustration. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Once I reached a tier 2 specialist, they manually reviewed my severance documentation and released my payments for the weeks where my severance was below my benefit amount.
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Dmitry Smirnov
•Thank you! I'll check out that service. Did you have to provide any special documentation about your severance when you finally got through?
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Yara Khoury
hey just wondering, is ur severance being paid as a lump sum or in regular payments like a paycheck? cuz that makes a difference. lump sum usually only affects 1 week but regular payments count as income for each week ur paid. at least thats what happened w/ me
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Dmitry Smirnov
•Mine's being paid in normal biweekly payments, just like when I was working. I guess that means each payment will count against 2 weeks of unemployment? I wish I had negotiated for a lump sum now!
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Keisha Taylor
You need to understand how EDD calculates partial benefits. For each certification week, if you earn more than $599, you're automatically disqualified for that week (assuming your weekly benefit amount is around $450). Since you're getting $1,900/week in severance ($3,800 biweekly), you're over the threshold. The confusion with the 'under review' status happens because: 1. Week 1: System automatically calculated excessive earnings 2. Week 3-4: Something in your certification triggered a manual review - could be how you answered questions about available for work, looking for work, etc. You should still certify every two weeks even if you're receiving severance. Once your severance ends, your benefits should start automatically if you've been certifying correctly.
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Dmitry Smirnov
•That makes so much sense! I think you're right about something triggering a manual review. I did mention in the comments section that I was receiving severance but available for work. I'll keep certifying and hopefully things will sort themselves out once the severance ends. Thank you!
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Connor Gallagher
Anyone telling you to just wait is WRONG!! If those weeks stay "under review" too long they can EXPIRE and then you'll have to appeal to get them fixed! Call EDD NOW and get those weeks processed correctly - even if they're denied for excessive earnings, that's better than stuck in review limbo!!!
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Keisha Taylor
•This isn't entirely accurate. Weeks under review don't "expire" in the way you're suggesting. The benefit year lasts for 12 months from the date you file your claim. As long as you certify within 14 days of the certification becoming available, your weeks remain valid throughout your benefit year.
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Miguel Diaz
btw did u calculate how much ur weekly benefit amount is? if ur severance divided by week is less than ur wba + $25 u might get partial benefits
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Ava Rodriguez
•Great point about partial benefits. To clarify: You can earn up to $25 or 25% of your weekly benefit amount (whichever is greater) without reduction. After that, each dollar reduces your benefit dollar-for-dollar. For most people with substantial severance payments, they'll exceed the threshold for any benefits.
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Zainab Ahmed
I went through this exact thing when I got laid off from Amazon last year!! The EDD website is sooooo confusing about severance. Keep certifying every two weeks even if you think you won't get paid. Once your severance runs out, you'll start getting payments automatically if you've been doing the certifications correctly.
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Dmitry Smirnov
•That's reassuring to hear from someone who went through it! Did your weeks also show as 'under review' or did they show something different?
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Ava Rodriguez
To address the original question more directly: Yes, you can technically collect unemployment while receiving severance in California, but only if your weekly severance amount falls below certain thresholds. Given your biweekly amount of $3,800 (which equals about $1,900/week), you're likely exceeding the threshold for receiving benefits. The 'under review' status means a manual review is needed. Call EDD to have a representative properly categorize those weeks. Even if they're ultimately determined to be 'excessive earnings' weeks, having this correctly recorded is important for your claim history and benefit calculation.
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Dmitry Smirnov
•Thank you for the clear explanation. I'll definitely call EDD to make sure everything is categorized correctly. I just wanted to make sure I wasn't doing something wrong or missing something in my certifications.
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