Will my severance package reduce my weekly EDD benefit amount?

Yes, severance can affect your unemployment benefits, but it depends on how it's paid out. Since you're getting a lump sum, EDD typically treats this as payment for the weeks it would have covered if paid biweekly (so in your case, 12 weeks). You'll need to report this when you file your claim. EDD will likely delay the start of your benefits until after that covered period ends. However, you should still apply for unemployment immediately - don't wait until your severance period would be over.

The EDD system is SUCH GARBAGE when it comes to severance! When I got laid off last year, they made me wait 8 weeks before I could get a SINGLE DOLLAR even though I had bills due right away. They don't care that you have to pay the full tax burden immediately! Meanwhile they take FOREVER to even process your claim. File immediately and expect to fight with them!!

my company did the same thing but called it a "separation agreement" not severance and i didnt have to wait. might depend on what they call it on your paperwork

I went through this exact situation in March. My company paid 6 weeks severance as a lump sum. I applied for unemployment immediately after being laid off, and during the application process there's a specific question about severance. I was completely honest and reported the full amount. What happened: EDD processed my claim but set the benefit start date for 6 weeks after my last day of work. So I was approved, but didn't receive any payments until after that 6-week "severance period" was over. The good news is the claim process continued in the background while I waited, so payments started automatically when the waiting period ended. Definitely file right away! The claim establishment process itself can take 2-3 weeks, so by the time that's done, you'll already be partway through your waiting period.

The payments started automatically once I reached the end of the severance period, but I still had to do the bi-weekly certifications during the waiting period even though I wasn't getting paid. Don't skip those! If you miss certifications, you'll delay things even more.

I had a similar situation but couldn't get through to EDD for weeks trying to confirm how my severance would affect my claim. Kept getting the "we're experiencing high call volume" message. Finally used Claimyr (claimyr.com) and got through to a rep in about 20 minutes. They explained exactly how my severance would affect my benefits and fixed an issue with my claim. You can see how it works in their video: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The rep told me that while I wouldn't get benefits during my "severance period," I should still certify every two weeks so that once that period ended, payments would begin automatically without delay.

Yes, the EDD rep explained that severance pay is considered "wages" under California unemployment law, which is why it delays benefits. But she also told me to make sure I report it correctly on my application. If you accidentally enter it as "vacation pay" or some other category, it could cause problems with your claim later.

Thanks everyone for all the helpful information! I'm going to file my claim today and make sure I report the severance correctly. I'll also make sure to keep up with certifications even during the waiting period. It sounds like I should plan for about 12 weeks without unemployment benefits, which is tough but at least I know what to expect now.

sorry about your layoff im in the same boat. my severence was only 2 weeks and its already gone lol. the waiting is the worst part especially when you have bills!!

I'm sorry you're going through this too. Getting laid off is stressful enough without having to navigate the unemployment system on top of it. From what everyone's shared here, it sounds like the key things are: 1) File immediately even though you'll have to wait, 2) Be very precise about how you report your severance, and 3) Keep doing those bi-weekly certifications during the waiting period. At least with 12 weeks of severance you have some breathing room to get everything sorted out. Hang in there and best of luck with the job hunt!