Can you get unemployment if you sign a separation agreement with NYS Department of Labor?
My company offered me a separation agreement with a decent severance package but I'm worried about whether I'll still qualify for unemployment benefits through NYS Department of Labor. The agreement says I'm voluntarily resigning but honestly they were probably going to let me go anyway due to budget cuts. Has anyone been in this situation? Will signing this hurt my UI claim or does NYS Department of Labor treat separation agreements differently than regular resignations?
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Clarissa Flair
This is actually a common situation and the good news is that separation agreements don't automatically disqualify you from unemployment benefits. NYS Department of Labor looks at the underlying circumstances, not just the paperwork. If you can show the separation was really involuntary (like company downsizing or restructuring), you should still qualify for UI benefits even with the agreement.
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Eve Freeman
AuthorThat's reassuring! Should I mention the separation agreement when I file my initial claim or just focus on explaining that it was really a layoff situation?
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Caden Turner
Be very careful about the language in that agreement though. Some companies include clauses that specifically state you're resigning voluntarily and that can complicate your UI claim. Read through it carefully and maybe have someone look at it before you sign. NYS Department of Labor will review the actual circumstances but having 'voluntary resignation' in writing makes it harder to argue.
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McKenzie Shade
This happened to my coworker last year - she signed without reading the fine print and had to go through a whole appeal process to get her unemployment approved.
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Harmony Love
I had this exact situation 6 months ago when my company 'restructured' half the department. I signed the separation agreement for the severance but was honest with NYS Department of Labor about the circumstances during my phone interview. They approved my claim within 2 weeks because it was clearly an involuntary separation disguised as voluntary. The key is being upfront about what really happened - don't try to hide the agreement but explain the context around it.
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Eve Freeman
AuthorDid you have to provide a copy of the separation agreement to NYS Department of Labor or just explain it verbally?
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Harmony Love
They didn't ask for a copy during the initial claim but I had it ready just in case. I think they were more interested in hearing about the company's financial situation and the fact that multiple people were being let go at once.
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Rudy Cenizo
ugh this is so stressful!! i'm in a similar boat and can't get through to anyone at NYS Department of Labor to ask about this stuff. been calling for days and either get disconnected or the line is busy. how is anyone supposed to get answers about their claim when you can't even talk to a human??
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Caden Turner
Have you tried using Claimyr? It's a service that helps you get through to NYS Department of Labor agents by phone. I found out about it from someone on Reddit and it actually worked - got connected to a real person within an hour instead of spending days calling. They have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Worth checking out at claimyr.com if you're desperate to talk to someone about your separation agreement situation.
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Rudy Cenizo
omg thank you!! never heard of this but definitely going to try it. anything has to be better than hitting redial 100 times a day
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Natalie Khan
Just want to add that timing matters too with separation agreements and unemployment. If you're getting severance pay, that might delay when your UI benefits start even if you're approved. NYS Department of Labor has rules about how severance affects your benefit timing so make sure you understand that part too before making your decision.
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Oliver Becker
That's a really good point about severance timing! I didn't even think about that aspect. Do you know if NYS considers it week-by-week or if they calculate it differently? Like if I get 8 weeks severance, does that mean I can't collect UI for those 8 weeks even if I'm approved?
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