Can I claim unemployment benefit after a settlement agreement with my employer?
I just signed a settlement agreement with my former employer last week after they terminated me. The settlement included a severance payment of about $8,000 and a non-disclosure clause. I'm wondering if I can still file for unemployment benefits through NYS Department of Labor or if the settlement disqualifies me somehow? The termination wasn't my fault - they said it was due to restructuring but I think there were other issues involved. Has anyone dealt with this situation before? I really need the unemployment income while I look for a new job.
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Miguel Hernández
You can definitely file for unemployment benefits after a settlement agreement. The NYS Department of Labor will look at the actual reason for your termination, not whether you received a settlement. The key factors are whether you were terminated through no fault of your own and if you're able and available for work. The severance payment might affect the timing of when you can start collecting benefits though - you'll need to report it when you file your initial claim.
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KylieRose
AuthorThanks! Do I need to report the exact settlement amount or just that I received severance? I'm worried they'll think I don't need the benefits.
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Sasha Ivanov
same thing happened to me two years ago, got a settlement from my company and still qualified for UI benefits
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Liam Murphy
Be very careful about what you tell NYS Department of Labor about the settlement terms. If there's anything in that agreement about you voluntarily leaving or resigning, that could cause problems with your claim. The adjudication process will review all the circumstances. I'd suggest being completely honest about the termination being involuntary due to restructuring. You might want to have copies of any documentation that shows it was their decision, not yours.
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KylieRose
AuthorThe settlement agreement does say 'involuntary termination due to business restructuring' so I think I'm okay there. Should I bring a copy when I file or just mention it?
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Amara Okafor
I had issues trying to reach NYS Department of Labor when I had questions about my settlement situation. Kept getting busy signals and when I did get through, I'd get hung up on after waiting forever. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person at unemployment. There's even a video demo showing how it works: https://youtu.be/qyftW-mnTNI. Made the whole process so much easier than trying to call myself.
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CaptainAwesome
Interesting, never heard of that service before. Did they charge you a lot for it?
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Amara Okafor
It was worth it just to avoid the frustration of trying to get through on my own. They focus on the value of actually reaching someone rather than spending days calling.
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Yuki Tanaka
Wait, I'm confused about this whole settlement thing. If you got money from your employer, doesn't that mean you can't get unemployment? I thought you had to choose one or the other. This is making me nervous about my own situation.
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Miguel Hernández
No, that's not correct. Settlement payments and unemployment benefits serve different purposes. The settlement is typically compensation for the circumstances of your termination, while unemployment benefits are there to support you while you search for new work. You can receive both, though the timing might be affected.
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Yuki Tanaka
Oh okay, that makes me feel better. I was worried I messed up by accepting the settlement.
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Esmeralda Gómez
The NYS Department of Labor system is so confusing about this stuff! I spent hours reading through their website trying to figure out similar questions. Why can't they just have clear examples of different scenarios instead of all this bureaucratic language?
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CaptainAwesome
Make sure you file your weekly claims correctly and report any income from the settlement period accurately. The job search requirements will still apply once your benefits start, so keep track of your applications and contacts. Also, if there are any ongoing legal matters related to your termination, be prepared to explain those during the adjudication process if they ask.
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KylieRose
AuthorGood point about the job search log. I've already started keeping track since I figured I'd need to file soon. The legal stuff is all settled now, no ongoing issues.
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Philip Cowan
I went through something similar about 6 months ago. The settlement itself won't disqualify you from unemployment benefits, but timing matters. NYS DOL will want to know the exact dates of your last day of work versus when you received the settlement payment. If the settlement covers a period where you would have been working (like payment in lieu of notice), that might delay when your benefits can start. I'd recommend filing your claim as soon as possible since there's usually a waiting period anyway. The worst they can do is adjust the start date if needed. Also keep all your settlement paperwork - they might ask for copies during the review process.
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