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Boeing layoff severance package and ESD benefits - can I apply while receiving severance?

Just found out I'm part of the Boeing layoffs happening next month. The severance package they're offering is one week's pay for every year of service (capped at 26 years). I've been with Boeing for 12 years, so that means I'd get about 3 months of severance pay. My question is about timing for unemployment benefits: 1. Can I apply for ESD unemployment as soon as I'm laid off, or do I have to wait until after my severance runs out? 2. Will ESD count my severance as income and reduce my benefits? 3. If I wait to apply until after my severance ends, will that affect my benefit amount? This is my first time dealing with unemployment and I'm trying to plan my finances for the next few months. Really appreciate any advice from folks who've been through this before!

Eli Wang

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Boeing severance payments DO affect your unemployment benefits, but not in the way most people think. The severance is considered "deductible income" by ESD, not disqualifying income. This means: 1. You should apply for unemployment immediately after your last day of work (don't wait) 2. You must report your severance payments when you file your weekly claims 3. Your benefits will be reduced during weeks you receive severance Since Boeing typically pays severance as a lump sum, ESD will allocate that across the weeks it represents (12 weeks in your case). Your weekly benefit might be reduced to $0 during those weeks, but you MUST continue filing weekly claims to maintain your claim and get full benefits once the severance period ends.

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Nora Brooks

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Thanks for the detailed explanation! So even if I'm getting $0 in benefits during my severance period, I should still file every week? Will my claim eventually expire if I keep filing but getting $0?

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my wife went thru this with boeing 2 yrs ago. they gave her 10 wks severance (10 yr employee) and she still applied for unemployemnt right away. ESD made her report the severance $ each week and she got $0 for those weeks but kept claiming. after the 10 wks she started getting the full benefit amount. DONT WAIT to apply!!!

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Nora Brooks

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This is really helpful, thank you! Did she have any issues with ESD understanding how the Boeing severance works? I'm worried about messing up the reporting.

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I disagree with the others. Boeing severance is actually considered separation pay not wages, so IT DOESN'T affect your benefits at all!! When I got laid off from Boeing in 2023, I received both full unemployment AND my severance with no reductions. The key is how you report it - don't list it as "wages" on your weekly claim. ESD's system is confusing on this.

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Eli Wang

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This is incorrect information that could get the OP in trouble. Boeing severance is absolutely considered deductible income. The RCW 50.04.323 and WAC 192-190-070 clearly classify employer-paid severance as deductible income. The confusion might be about how it was reported, but officially, severance reduces UI benefits for the period it covers.

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Have you tried calling the ESD directly to get the most up-to-date info? Their rules sometimes change and Boeing layoffs usually have specific guidance. I tried calling them last month about something else and was on hold foreverrrrr then got disconnected twice 😫

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Ethan Scott

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I had the same issue trying to reach ESD until I found Claimyr (claimyr.com). They got me through to an ESD agent in about 15 minutes instead of waiting for hours. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Definitely worth it for situations like this where you need specific answers about Boeing severance and unemployment. The ESD agents can look at your specific situation and tell you exactly how to report the severance correctly.

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Lola Perez

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I work at WorkSource helping laid off Boeing employees. Here's what you need to know: 1. Apply for unemployment immediately after your last day 2. Report your severance correctly as "separation pay" on your weekly claims 3. Continue filing EVERY week even when receiving $0 benefits 4. After your severance allocation period ends, your regular benefits will start 5. Your benefit year lasts 52 weeks from application, so you won't lose benefits Also, Boeing layoffs qualify for additional assistance through our Aerospace Tax Credit program. Come to a WorkSource center to learn about training opportunities and job search assistance specifically for aerospace workers.

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Nora Brooks

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This is incredibly helpful, thank you! I didn't know about the Aerospace Tax Credit program. Is there a specific WorkSource location that specializes in helping Boeing employees?

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ESD IS A COMPLETE NIGHTMARE!!! I got laid off from Boeing in January and they're STILL fighting me about my severance pay calculations. First they said I reported it wrong, then they said I didn't provide proof, then they said I need to pay back $4200 for "overpayment"!!!! The system is designed to confuse you so they can deny benefits. DOCUMENT EVERYTHING and get names of every person you talk to!!!

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same happened to my cousin! ESD is terrible with boeing layoffs, always trying to say people did something wrong. its like they dont understand how boeing severance even works.

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Eli Wang

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To respond to your follow-up question: Yes, you should absolutely file every week even when receiving $0. Your claim will NOT expire as long as you continue filing weekly claims without interruption. The benefit year lasts 52 weeks from your application date. What happens is your total benefit entitlement (typically 26 weeks worth) remains available to you throughout your benefit year. The weeks when your benefits are reduced to $0 by severance don't count against your 26 weeks of benefits - they're essentially paused. So if you have 12 weeks of severance and file claims during that entire period (getting $0), you'll still have your full 26 weeks of benefits available to use during the remainder of your benefit year.

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Nora Brooks

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That makes so much more sense now! Thank you for explaining it clearly. I was worried I'd lose potential benefits by filing during severance, but it sounds like that's actually the right approach.

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Riya Sharma

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Boeing employee here - just went through this in December. Make sure you attend the layoff information session HR provides. They'll give you a packet that explains exactly how to handle unemployment with the severance. There's actually a specific code Boeing gives ESD for our layoffs that helps them process everything correctly. Don't skip that meeting!

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Nora Brooks

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Oh! I didn't know about a specific meeting. We just got the initial notification. I'll ask my manager about this tomorrow - thank you for the heads up!

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