Laid off with severance offer - Can I collect EDD unemployment while receiving severance?

I went through this last year. You CAN apply for unemployment immediately after your last day of work, but you have to report the severance pay when you certify. The severance will delay when your benefits start but won't disqualify you completely. On your certification, EDD will ask if you received any income, and you'll need to report the severance in the week you receive it (not when it was earned). Your UI benefits will be reduced or eliminated for those weeks depending on the amount. After your severance period ends, you'll get your regular UI amount. Make sure you clarify with your employer exactly WHEN the severance will be paid - lump sum or spread out - as that affects how you report it.

When i got layed off i got a sevrence but didnt tell EDD about it and still got my full benifits. They never found out and it was fine. just saying

I AM GOING THROUGH THIS RIGHT NOW and EDD is a NIGHTMARE!!!! I reported my severance honestly when I certified and they completely STOPPED my benefits for 6 weeks even though my severance was only for 4 weeks of pay!! Now I'm calling them DAILY trying to get this fixed and CAN'T GET THROUGH!! The system is BROKEN and punishes people for being honest. Should've just taken the money and not said anything like everyone else does.

There's a specific way severance impacts UI benefits in California: 1. Severance is considered "wages in lieu of notice" by EDD 2. You must report it during certification for the week(s) you receive payment 3. If your severance exceeds your weekly benefit amount, you'll receive $0 for that week 4. If it's less than your weekly benefit, you'll receive a partial payment 5. This does NOT reduce your total benefit amount - just delays when you can access it Make sure your severance letter clearly specifies the payment is severance/wages in lieu of notice, not vacation payout or something else, as different types of final pay are treated differently by EDD.

my cousin got laid off from Amazon and had the same thing happen. u def need to apply for ui right away don't wait! the severance gets reported but when his ran out the ui kicked in automatically. the system knows when ur eligible cuz they see the reported earnings each week. he said make sure u certify every 2 weeks even if ur getting $0 otherwise ur claim can get messed up.

wait does this apply to bonuses too?? I got a retention bonus when my company was going under but I was still laid off lol

OK so based on everyone's advice, it sounds like I should: 1. Take the severance package (duh) 2. File for unemployment immediately after my last day 3. Report the severance honestly when certifying 4. Keep certifying EVERY week even if I'm getting $0 during the severance period 5. Once severance runs out, benefits should kick in automatically as long as I've kept certifying Does that sound right? Thank you all for the help - this has been so confusing!

Just wanted to add one more tip that saved me a lot of hassle - when you're reporting your severance during certification, EDD will ask for the EXACT dates you received the payment, not when it was earned. So if you get laid off on March 15th but receive your lump sum severance on March 20th, you report it for the week containing March 20th. I made the mistake of reporting it for my termination week initially and it created a mess that took weeks to sort out with EDD. Keep documentation of when payments actually hit your bank account!

One thing I learned the hard way - if your company offers you the choice between lump sum or installment payments for severance, consider how it might affect your cash flow. I took the lump sum thinking it would be better, but it completely wiped out my UI benefits for like 3 weeks straight since my severance was pretty substantial. In hindsight, spreading it out over 6 weeks might have been smarter because I could have gotten partial UI payments during some of those weeks. Just something to think about when you're weighing your options!

One more thing to consider - check if your severance package includes continuation of health benefits (COBRA) and how that timing works with your unemployment application. When I was laid off last year, my health insurance was tied to my severance period, so I had coverage during those 6 weeks but then had to figure out COBRA vs. getting on Covered California quickly. EDD doesn't affect your health insurance directly, but the timing of when your benefits kick in can impact your overall financial planning. Also, some people don't realize that if you find a new job during your severance period, you might need to pay back some of the severance depending on your agreement - definitely read the fine print!

Something I wish someone had told me when I went through this - keep ALL your documentation organized from day one! I'm talking severance agreement, termination letter, pay stubs showing your last regular paycheck vs severance payment, bank deposit records, everything. When EDD inevitably has questions or if there's any confusion in their system, having that paper trail ready makes resolving issues SO much faster. I spent hours on hold with EDD trying to explain my situation without proper documentation the first time. Also, screenshot your EDD account after each certification showing exactly what you reported - I've heard of cases where people's reported amounts somehow got entered incorrectly in the system. Better to have the proof and not need it than be scrambling later when you're already stressed about finding work.

This thread is incredibly helpful! I just wanted to add something that might help with the timing confusion - when I was laid off from my startup last year, I called EDD's customer service line BEFORE filing my claim to ask specifically about my severance situation. Even though it took forever to get through, the rep walked me through exactly how to report my severance and what to expect week by week. She even noted my account so if I had issues later, there would be a record of the guidance I received. It was worth the wait because I avoided a lot of the confusion others have mentioned. Also, she told me that tech companies sometimes structure severance in ways that can be tricky to report, so having that conversation upfront helped me ask my HR team the right questions about payment timing and categorization. Definitely recommend this approach if you can get through to someone!