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Zoe Papanikolaou

Can I use severance pay to qualify for NY unemployment after severance period ends?

I just got laid off and will be receiving severance pay for 8 weeks. My HR told me I can't apply for NY unemployment until the severance period is over. But I'm confused about what happens AFTER my severance ends. Will those 8 weeks of severance payments count as "earnings" for establishing a new unemployment claim? Or will I need to find another job first to qualify? I worked at my company for 3 years before the layoff, if that matters. Anyone know how severance affects establishing a new NY unemployment claim?

Jamal Wilson

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yes u can file after severance ends. thats what i did last yr. severance doesnt count as wages for qualifying for benefits

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Thanks but are you 100% sure? My severance packet says something about it not being considered wages, but I thought you needed wages to qualify for unemployment?

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Mei Lin

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Your HR is partially correct but missing some details. In New York, severance pay does temporarily disqualify you from receiving benefits during the period you receive it (if paid in a lump sum, it's allocated over weeks). However, severance pay is NOT considered wages for establishing monetary eligibility for a new claim. To qualify for NY unemployment, you need wages in your base period - typically the first 4 of the last 5 completed calendar quarters before filing. Your 3 years of regular employment (not the severance) will be what establishes your eligibility. So yes, you should wait until your severance period ends to apply, but those severance payments won't help or hurt your ability to qualify for a new claim.

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Thank you! That makes sense. So I'll file as soon as my severance period is over, and my claim will be based on my regular wages from the past year, not the severance money. That's a huge relief.

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What if the severance doesn't cover all your bills?? Can you file for partial unemployment while getting severance?? I'm getting laid off next month and I'm SO worried because my severance is only going to be 4 weeks but my rent is super high and I have medical bills??? Will they let me get partial benefits????

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Mei Lin

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Unfortunately, in NY you typically can't receive unemployment benefits during weeks you receive severance pay, even if the severance amount is less than your potential benefit. The severance period must end before you can collect benefits. However, you should apply as soon as your last day of work arrives - don't wait until severance ends to submit your initial application.

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GalacticGuru

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Just went through this last month. My company gave me 12 weeks severance. When I called NYSDOL they were completely unhelpful and I couldn't get a straight answer. I waited on hold for almost 2 hours!

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Amara Nnamani

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I had the same frustrating experience trying to reach someone about my claim. After days of trying, I used a service called Claimyr that got me through to an agent in about 20 minutes. They helped me understand exactly how my severance affected my eligibility. Worth checking out their demo at https://youtu.be/Rdqa1gKtxuE if you're still having issues. The website is claimyr.com - it saved me days of redial frustration.

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The official NYSDOL policy on severance and unemployment is very specific. Severance payments are considered remuneration that will delay your eligibility to receive benefits, but they ARE NOT considered wages for establishing a valid claim. Your base period wages (typically from employment in the 5 quarters before filing) determine if you qualify. If you worked consistently for 3 years before being laid off, you'll almost certainly have sufficient wages in your base period to qualify once your severance period ends. One important tip: When you file your claim, you must accurately report your severance. NYSDOL will calculate when you can start receiving benefits based on this information.

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GalacticGuru

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I'm still confused. So does severance count as "days worked" or not?? The form asks about days worked and I don't know if severance days count as days worked!

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For certification purposes, days you receive severance are considered "days worked" even though you're not physically working. This is why you can't receive benefits during your severance period. However, these severance payments don't count as "wages" for determining if you qualify for a claim in the first place. They're treated differently depending on which part of the process you're looking at.

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My brother just got a package with 6 months severance and they told him something like he has to wait until next year to file because of the base period stuff? He was really mad because he said by then his high earning quarters will fall outside some window? Anyone else run into this weird timing issue??

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Mei Lin

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This can happen with longer severance periods. If your brother's severance extends 6+ months, by the time he can file, his base period (which looks back at recent quarters) might indeed no longer include some higher-earning quarters. It's unfortunate but accurate. If he has specific questions about his situation, he should contact NYSDOL directly.

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Jamal Wilson

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ALSO your company might be lying to u. my friend got told she couldnt file during severance but then she did and got both!!! rules change all the time maybe try anyways

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Please be careful with this advice. Filing while receiving severance without properly reporting it is considered fraud by NYSDOL. Your friend may have received benefits incorrectly and could face repayment demands with penalties later. The rules on severance have been consistent - it's considered remuneration that delays benefit eligibility. Always accurately report severance when filing.

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I just wanted to update everyone. I called the unemployment office after struggling to get through for days. They confirmed what many of you said - my severance will delay when I can start receiving benefits, but it won't affect my ability to qualify for a claim. They said I should file my initial claim right after my last day of work (even though I'll be receiving severance), and then they'll determine when I can start receiving benefits after the severance period ends. Thank you all for your help!

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That's great news! Thanks for following up with the official confirmation. It's really helpful when someone actually gets through to NYSDOL to verify the details. Just to add one more tip for anyone else in a similar situation - when you do file that initial claim right after your last day of work, make sure you have all your severance documentation ready. NYSDOL will need the exact amounts and dates to calculate when your benefit period can actually begin. Good luck with everything!

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Axel Bourke

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One thing I learned from my own experience is that you should also check if your employer is offering any other benefits during the severance period, like continued health insurance coverage. Sometimes companies will maintain your benefits during severance which can affect how you report things to NYSDOL. Also, keep detailed records of all your severance payments and dates - if there are any issues with your claim later, having that documentation will save you a lot of headaches. The key is being completely transparent about everything when you file!

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Miguel Silva

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This is really solid advice! I went through a similar situation last year and wish I had known about the health insurance reporting aspect. My company continued my benefits during severance and I initially forgot to mention it when I filed. It caused some delays in processing my claim because they had to verify the details. Also, keeping a spreadsheet with all the severance payment dates and amounts made everything so much smoother when I had to recertify later. Documentation is definitely key - NYSDOL asks for very specific information and having it organized saves so much time and stress!

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Just wanted to chime in as someone who went through this exact situation about 6 months ago. I was laid off from a tech company after 4 years and received 10 weeks of severance. The waiting period was definitely stressful, but everything worked out exactly as described here. A few things I learned that might help: 1. File your initial claim online the day after your last day of work - don't wait until severance ends. This gets your claim in the system and they'll calculate your waiting period. 2. Keep checking your online account during the severance period. NYSDOL will sometimes request additional documents or clarification, and responding quickly helps avoid delays once you become eligible. 3. Your weekly benefit amount will be calculated based on your regular wages from the base period, not the severance. So if you were making good money before the layoff, your benefits should reflect that. 4. Start your job search during the severance period if possible. You'll need to be actively seeking work once benefits kick in, and having a head start really helps. The system actually works pretty well once you understand it. Hang in there - those 8 weeks will go by faster than you think!

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This is incredibly helpful, thank you! I'm in a very similar situation - just got laid off from a marketing firm after 2.5 years and have 6 weeks of severance coming. Your point about starting the job search during severance is something I hadn't considered but makes total sense. Did you find that employers were understanding about your severance timeline when you were interviewing? I'm worried about explaining the gap or having to turn down offers that come too early. Also, when you say "check your online account" - is there a specific portal or app that NYSDOL uses for updates?

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