Can you get unemployment if you get severance from NYS Department of Labor?
My company is laying off a bunch of people next month and they're offering severance packages - 8 weeks pay for my position. I've never dealt with unemployment before but I'm wondering if getting severance affects whether I can file for NYS Department of Labor benefits? Does the severance payment disqualify me completely or just delay when I can start collecting? I really need to know because I have to decide whether to take the severance or not.
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Kennedy Morrison
You can still file for unemployment benefits even if you receive severance pay. However, NYS Department of Labor treats severance as deductible income during the period it covers. So if you get 8 weeks of severance, you typically can't collect UI benefits for those 8 weeks. The good news is you can file your claim right away - just report the severance on your weekly certification and NYS Department of Labor will calculate when your benefit payments can start.
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Lily Young
AuthorThat's helpful, thanks! So I should definitely take the severance then file immediately? Do I need to wait until my last day of work to file the claim?
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Wesley Hallow
had this same situation last year when my restaurant closed down permanently. they gave me 4 weeks severance and i was still able to get unemployment after that period ended. just make sure you report everything accurately on your weekly claims because nys department of labor will find out about the severance anyway through your employer
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Lily Young
AuthorGood to know it worked out for you! Did you have any issues with the timing or paperwork?
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Wesley Hallow
nope pretty straightforward once i understood how to report it. the hardest part was actually getting through to someone at nys department of labor to ask questions
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Justin Chang
The NYS Department of Labor system is so frustrating when you're trying to get answers about complex situations like this. I spent weeks trying to reach someone by phone last time I had questions about my claim. If you need to speak with an actual agent, I found this service called Claimyr (claimyr.com) that helps you get through to NYS Department of Labor representatives. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of being on hold and getting disconnected.
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Lily Young
AuthorInteresting, I'll check that out if I run into problems. Hopefully the online system will have enough info for my situation.
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Grace Thomas
Take the severance for sure! Even if it delays your unemployment benefits, having guaranteed income for 8 weeks is better than relying on the unemployment system right away. Plus you'll have time to look for work without the stress of waiting for your first UI payment to come through.
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Hunter Brighton
Just to clarify the process - you can file your initial claim as soon as you're laid off, but when you do your weekly certifications, you'll need to report the gross amount of severance you received each week. NYS Department of Labor will then determine your benefit eligibility for that week based on their deductible income calculations. The severance won't affect your overall benefit entitlement, just the timing of when you start receiving payments.
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Aria Washington
I went through this exact situation 6 months ago when my tech company did layoffs. Definitely take the severance - it's basically free money that just shifts your unemployment timeline. I filed my claim the day after my last day of work and reported my severance weekly. NYS Department of Labor was actually pretty clear about the process once I got into the system. One tip: keep all your severance documentation because they may ask for it later to verify the amounts and dates. Also start your job search immediately during the severance period so you're already in the groove when your UI benefits kick in.
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