Receiving severance until June 2025 - Will EDD disqualify my unemployment claim?
I just got laid off yesterday from my tech support job after 5 years with the company. HR told me they're providing severance pay that will continue until June 2025 (about 4 months from now). The paperwork says my official termination date is in June even though I'm not working anymore. I'm confused about how this affects filing for unemployment. Can I apply for EDD benefits now or do I have to wait until my severance payments end in June? Will reporting this severance income disqualify me completely? I need to start looking for work right away but don't know if I should bother with EDD yet. Has anyone dealt with unemployment while receiving severance?
20 comments
Emily Parker
You can and should apply for unemployment immediately. Your termination date for EDD purposes is when you stopped working (yesterday), not the date your severance ends. However, you must report your severance payments as income when you certify each week. Depending on the amount, your weekly benefit might be reduced or zeroed out during the severance period - but you'll still establish your claim now which is important for your benefit year.
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Justin Evans
•Thanks for the quick reply! So even if my severance is more than what I'd get from unemployment, it's still worth applying now? What happens after June when the severance ends - will I automatically start receiving the full benefit amount?
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Ezra Collins
ya def apply now!! my company did same thing last yr nd i waited 2 months b4 applying BIG mistake!! once ur severance ends u might hav problems if u wait 2 long to file
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Victoria Scott
I faced a similar situation in 2024 and learned through experience that you should file immediately. Here's why: 1. Your benefit year starts from when you file, not when payments begin 2. Severance is reportable income that may reduce your weekly benefit amount 3. When your severance ends, your full EDD benefits should automatically kick in (if you're still unemployed) 4. Most importantly, if you wait until June to file, you could potentially lose months of eligibility During certification, report your severance income accurately. When I did this, my payments were reduced to $0 during my severance period, but once that ended, I received my full benefit amount without having to file a new claim.
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Justin Evans
•This is super helpful! So I'd basically be getting $0 while receiving severance, but at least the claim would be established. Do I still need to do the job search requirements even during weeks when I'm getting $0 from EDD?
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Victoria Scott
•Yes, you must still meet all work search requirements even during weeks you receive $0 due to your severance. Document at least 3 job search activities each week. If you don't maintain these requirements, you could be disqualified when your severance ends and you'd otherwise be eligible for payment.
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Benjamin Johnson
wait, i thought severance doesnt count as income for EDD?? my brother got a lump sum payment and EDD didn't reduce his benefits at all last year. maybe depends on how they classify it??
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Emily Parker
•It absolutely counts as income. There's a difference between lump sum payments and ongoing severance payments. How the severance is structured matters, but in most cases, it must be reported. Your brother's situation might have been different or he may have misunderstood the reporting requirements.
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Zara Perez
THE EDD SYSTEM IS DESIGNED TO CONFUSE PEOPLE!!! I went through this exact nightmare in 2023 - applied while on severance, then got FLAGGED for an eligibility interview because they claimed I wasn't "truly unemployed" until my severance ended!! Took 6 WEEKS to get an interview and another 2 weeks for them to decide I was eligible all along. By then I'd already missed out on thousands in benefits I should have gotten. The whole system is BROKEN!!!!
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Daniel Rogers
•omg this is what I'm afraid of happening! did you ever get back pay for those weeks?
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Zara Perez
•Eventually yes, but only after HOURS of being on hold and explaining the same thing to like 5 different reps who all told me something different. Total nightmare.
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Aaliyah Reed
If you're having trouble reaching EDD to ask these questions (which let's be honest, we all do), you might want to try Claimyr. I was in a similar situation with severance questions and couldn't get through for weeks. Found this service that gets you through to an actual EDD rep - worked for me after trying for days on my own. Their site is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km I'd definitely recommend talking to an actual EDD rep about your specific severance situation rather than risking doing something wrong.
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Justin Evans
•Thanks for the tip! I've been trying to get through to EDD for the past two days with no luck. I'll check this out if I still can't get through by the end of the week. Did you find the information they gave you about severance was accurate?
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Aaliyah Reed
•Yes, the EDD rep I spoke to was really helpful. She explained exactly how to report my severance on the certification forms and what to expect. The key was actually getting to speak to someone instead of just guessing based on the confusing website info.
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Ezra Collins
i had 2 file a new claim when my severance ended even tho i already had 1 going did anyone else hav to do this??
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Emily Parker
•No, that's not the standard procedure. If you already had an active claim, you should have continued certifying for benefits throughout your severance period (reporting the income). You shouldn't need to file a new claim until your benefit year ends (12 months from your initial filing date).
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Daniel Rogers
I'm in almost the exact same boat as you! Got laid off last week but getting severance through July. I'm so confused about all this too. My HR department was absolutely no help explaining how unemployment works. Following this thread to see what I should do...
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Victoria Scott
Everyone's situation is a bit different, but here's what happens in most cases with severance and EDD: 1. Apply immediately after your last day worked 2. Report all severance payments during bi-weekly certification 3. Continue meeting work search requirements every week 4. Once severance ends, if you're still unemployed, you'll start receiving your full benefit amount The most important thing is to be completely transparent about your severance when you certify. Marking that you received income and entering the correct amounts will prevent potential overpayment issues later.
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Justin Evans
Update: I applied for unemployment yesterday and already got confirmation my claim was received! I reported my upcoming severance payments and put my last day of work as the date I was laid off (not the June date). Thanks everyone for the advice. I'll update again once I find out if my claim is approved or if I run into any issues with the severance reporting.
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Emily Parker
•Great job! Just remember to keep certifying every two weeks even if you know you'll get $0 due to your severance income. And don't forget to do and document your work search activities each week. Best of luck with your job search!
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