EDD unemployment after severance - can I file when layoff payments end?

I went through something similar last year. You CAN file for UI as soon as your regular paychecks stop - don't wait until after severance. The severance package will affect your benefits though. EDD considers severance as "wages" if it's paid out periodically, which can reduce your weekly benefit amount during those weeks. If it's a lump sum, it's typically allocated to the week you receive it. My advice: File immediately after your last regular paycheck. Be 100% honest about the severance when you certify. EDD will adjust your benefits accordingly.

The advice above isn't completely accurate. How EDD treats severance depends on how it's characterized by your employer. If it's designated as "severance pay" rather than "continuation of wages," it won't reduce your weekly benefit amount, but if it's characterized as wages, then yes, it will affect your benefits. Also, it DOES matter whether you take lump sum vs. installments. Lump sum is usually better because EDD often only counts it against the week you receive it. With installments, each payment can reduce your benefits for multiple weeks. Make sure to report any severance when you certify for benefits and indicate the specific week you received it. EDD will decide how to treat it based on how your employer reported it.

I suggest calling EDD directly to get a definitive answer for your specific situation. With severance packages, the details really matter, and general advice might not apply perfectly to your case. Of course, reaching EDD by phone can be nearly impossible sometimes. I recently discovered a service called Claimyr that helped me get through to an EDD representative in less than 20 minutes after I tried for days on my own. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km They basically call EDD for you and connect you when they get through. Really helped when I needed clarification on my severance situation.

THIS IS WHY THE SYSTEM IS SO FRUSTRATING!!! Everyone gets different answers depending on who you talk to at EDD!! I got totally screwed on my claim last year because nobody told me my severance would count as wages!!! I had to pay back $2,400 in "overpayments" even though I reported everything honestly. The EDD website is USELESS on explaining this clearly!!

are u sure ur actually being laid off? sounds like they might be just transitioning u to a different role or something. my company did something similar where they said i was being laid off but they kept me on payroll for 3 months and then offered me a different position with less pay. if they're keeping u on payroll you might not qualify for ui yet.

I used that Claimyr service the other commenter mentioned when I was dealing with my severance situation. They got me through to an EDD rep who explained that for my specific case, the severance wouldn't count against my benefits because of how my employer classified it. Not sure if that will be the same for you, but talking to EDD directly was the only way I got a clear answer.

just make sure ur honest on ur application!! thats the most important thing. dont try to hide the severance or theyll come after u for fraud. my cousin did that and now owes like $8k in penalties 😬

i had something kinda similar happen with my job at target last year we all got "transition pay" for 6 weeks after they closed our store and i was able to get ui after that ended but the lady at edd told me id have to report any severance when i certified and they might reduce my weekly amount depending on how much i got

To clarify a few points based on the discussion: 1. You can and should file for UI immediately after your regular paychecks end in March 2025. 2. How your severance affects your benefits depends on: - How your employer classifies and reports it - Whether it's a lump sum or installments - The specific language in your severance agreement 3. When you file, you'll need to report the severance package. Be prepared to provide your severance agreement documentation if requested. 4. Most importantly, be completely truthful in your application and certification. Misreporting, even accidentally, can lead to overpayment demands and penalties. Given the complexity of your situation, speaking directly with an EDD representative is your best course of action.