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Can I apply for ESD unemployment while receiving severance payments that exceed weekly benefit?

I just got laid off from my tech job and negotiated a separation package that includes severance pay for 8 weeks (paid every other week). The bi-weekly payments are actually more than what I'd get from unemployment. I'm confused about whether I should still file for unemployment now or wait until the severance runs out? If I file now, will ESD still give me some partial benefit even though my severance exceeds the weekly benefit amount? I don't want to miss out on anything I'm entitled to, but also don't want to mess up and get hit with an overpayment later. Anyone deal with something similar?

Oliver Brown

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You should definitely file for unemployment right away! Don't wait until your severance runs out. Here's why: 1. Your claim's effective date starts when you file, not when you might start receiving benefits 2. You must report your severance payments when you file your weekly claims 3. While receiving severance that exceeds your weekly benefit amount, you'll likely receive $0 in benefits for those weeks 4. BUT - your claim will be established and once severance ends, you can continue filing weekly claims without having to start a new claim This way, you're establishing your benefit year immediately. Just be 100% honest about reporting all severance income on your weekly claims.

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Honorah King

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Thanks for the quick response! So even if I get $0 during these weeks with severance, it's still worth filing the initial claim now? I'm worried about messing something up since the ESD website is confusing.

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Mary Bates

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DONT LISTEN TO THE OTHER COMMENT!!! ESD COUNTS SEVERANCE AS INCOME and they will say you're making too much $$$ and deny you!!! I got laid off last year and my severance package COMPLETELY DISQUALIFIED me from getting ANY unemployment until it ran out!! The system is RIGGED against us!!!

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Clay blendedgen

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Same. Got a 3 month sev package and couldn't collect a dime until it was gone. SUCKS.

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Ayla Kumar

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I was in almost the exact same situation in February when my company downsized. Let me share what I learned: - File your initial claim immediately after separation - Report all severance payments accurately on weekly claims - Your weekly benefit will likely be reduced or eliminated during severance weeks - Your benefit year starts from your application date, giving you the full benefit period While receiving severance, your weekly claims may show as "excess earnings" with $0 benefit. This is normal. Once severance ends, you'll start receiving your full weekly benefit amount if you're still unemployed and actively seeking work. Severance is considered "deductible income" under WAC 192-190-070 and will reduce your unemployment benefit for those weeks.

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Honorah King

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This is super helpful, thank you! Does this mean I need to do the 3 job search activities each week even during the weeks I'm getting $0 because of severance?

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Ayla Kumar

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Yes, you still need to complete and document your 3 job search activities each week, even during weeks when your benefits are reduced to $0 due to severance pay. This maintains your claim as active and ensures there's no gap when your severance ends. Also, make sure you understand how your severance is categorized. Sometimes employers report it differently (as wages in lieu of notice, continuation of wages, etc.) which can affect how ESD processes it. Your separation letter should clarify this.

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Actually, you might qualify for standby status which would exempt you from job search requirements. Worth checking if you're expecting to return to your employer or have a definite job offer lined up within 12 weeks.

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I tried to get thru to ESD last month to ask this exact thing!!! kept getting hung up on after waiting FOREVER. finally found this service called Claimyr that got me connected to an actual ESD agent in like 20 mins. they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 - site is claimyr.com if anyone needs it. worth it to get clear answers instead of guessing

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Clay blendedgen

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Does this actually work? I've been trying to get thru to ESD for 3 weeks about my identity verification issue

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Worked for me! The agent I talked to explained everything about how my severance would affect my claim. Way better than stressing out about it for weeks.

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Kai Santiago

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I think it depends on how they structured your severance? When I got laid off my employers payroll lady said they coded it as "continuation of wages" not "severance" so unemployment treated it differently? i dunno the whole system is confusing af

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Oliver Brown

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This is an important point. The classification of your severance can matter. "Continuation of wages" and true "severance pay" might be treated differently. Check your separation agreement for the specific language used.

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Honorah King

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Update: I went ahead and filed my initial claim. The ESD website had a specific section where I could report the severance arrangement. I also uploaded my separation agreement as supporting documentation. I got an automated message saying my claim was received and that I should continue filing weekly claims even if I'm receiving severance. I'll start my job search activities this week and keep everyone posted on what happens!

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Ayla Kumar

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Great approach! Make sure to keep detailed records of your job search activities. ESD can audit these at any time. A spreadsheet with dates, company names, contact information, and the specific actions you took works well.

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