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AstroAce

Can I claim Washington ESD unemployment benefits after a settlement agreement?

I just signed a settlement agreement with my former employer last week after they terminated me for what I believe was retaliation. The settlement included a lump sum payment but didn't specify anything about unemployment benefits. I'm wondering if I can still file for Washington ESD benefits or if the settlement disqualifies me somehow? The termination was definitely not my fault but I'm worried the settlement might complicate things. Has anyone dealt with this situation before?

Settlement agreements don't automatically disqualify you from unemployment benefits in Washington. What matters more is the reason for your termination and whether you were separated through no fault of your own. Did the settlement agreement include any language about the reason for termination?

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The settlement says something about 'mutual separation' but I was definitely fired. Should I mention the settlement when I file my claim?

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Yes, you should be honest about everything when filing. Washington ESD will review the circumstances of your separation regardless of how the settlement characterizes it.

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i got unemployment after settling with my employer but it took forever to get approved. they had to do some kind of investigation because of the settlement money.

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How long did the investigation take? I need to start getting benefits soon to pay my bills.

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like 6 weeks total, kept showing adjudication in progress on my account

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I had a similar situation and ended up using Claimyr to actually get through to a Washington ESD representative who could explain exactly what documentation they needed for my settlement case. The adjudication process was taking forever and I couldn't get anyone on the phone normally. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me weeks of calling and getting busy signals.

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never heard of that service before, does it actually work?

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Yeah it worked for me. Got connected to an actual person at Washington ESD within a few days instead of calling hundreds of times myself.

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I might try this if my claim gets stuck in adjudication. Did they help you figure out what paperwork to submit?

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The key issue is whether the settlement includes any severance pay or payments in lieu of wages. If it does, that might affect your benefit timing. Washington ESD considers any payments that substitute for wages as potentially disqualifying during the period those wages would have covered. You'll need to report the settlement amount and date when you file your initial claim.

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The settlement was a lump sum but wasn't specifically called severance. It was more like compensation for the wrongful termination. Would that make a difference?

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Washington ESD will determine how to classify the payment based on its purpose and timing. Since it wasn't designated as wages or severance specifically, it might not delay your benefits, but they'll review it during adjudication.

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ANOTHER person getting screwed by the system! These employers think they can just throw money at you and make their problems disappear. File for benefits anyway and make them prove you don't qualify!!

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That's not really helpful advice. The person needs to follow proper procedures or they could end up with an overpayment.

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I'm just saying don't let them intimidate you out of filing. You have rights!

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Make sure you have copies of your settlement agreement, termination letter, and any other documentation about why you were fired. Washington ESD will want to see the actual circumstances of your separation, not just what the settlement says about it.

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Good point. I have emails showing the retaliation too. Should I include those when I file online?

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You can upload them with your initial application or wait until Washington ESD requests additional documentation during adjudication.

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just make sure you report the settlement money amount correctly when you file weekly claims. i made a mistake with that and had to pay back some benefits later.

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Do I report it as earnings or something else on the weekly claim?

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Settlement payments typically aren't reported as weekly earnings since they're not wages. But you should mention it during the initial application process so Washington ESD can make the proper determination.

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wait so if you get a settlement you might not qualify for unemployment? that seems wrong

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It's not that you don't qualify, but depending on what the settlement payment represents, it might delay when you can start receiving benefits.

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oh ok that makes more sense i guess

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I'm dealing with something similar right now and my claim has been in adjudication for almost a month. The settlement is complicating everything and I can't get through to Washington ESD to explain the situation. This is so stressful when you need the money to survive.

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That's exactly why I used Claimyr - the adjudication process drags on forever if you can't talk to someone who understands your specific situation. Worth checking out if you're stuck.

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I might have to try that. I've called probably 200 times and either get busy signals or get disconnected after waiting on hold for hours.

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depends on what kind of settlement it was and whether it included wages you should have been paid

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It was compensation for the wrongful termination and legal fees, not back wages.

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then you should be fine but they'll still investigate it

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One important thing to consider is the timing of when you file. If the settlement agreement has any non-compete or non-disclosure provisions that might affect your ability to seek work, Washington ESD needs to know about that too since you have to be able and available for work to receive benefits.

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There is a non-compete clause but it's pretty narrow - just prevents me from working for direct competitors for 6 months. I can still work in my field otherwise.

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You should be fine then, but make sure to mention that during your eligibility interview if Washington ESD schedules one.

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my lawyer told me to file for unemployment right away even with the settlement. said waiting would just make things more complicated.

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That's good advice. I was worried about waiting too long and missing deadlines.

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this whole system is so confusing. why can't they just make it simple?

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Because they don't want people to actually get benefits! They make it complicated on purpose.

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The complexity exists because there are many different situations that need to be evaluated fairly. Settlement agreements can involve various types of payments that need different treatment under unemployment law.

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Update: I finally got through to Washington ESD using that Claimyr service someone mentioned earlier. The rep explained that my settlement won't affect my benefits since it wasn't severance pay or back wages. My claim should be approved within the next week. Thanks for the suggestion!

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That's great news! I'm going to file my claim today and see what happens.

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Glad it worked out for you! It's so much better when you can actually talk to someone who knows what they're talking about.

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make sure you keep good records of everything related to your settlement and termination. if washington esd has questions later you'll need documentation

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Good point, I've been keeping copies of everything in a folder.

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Just to summarize for anyone else reading this: settlement agreements don't automatically disqualify you from unemployment benefits in Washington state. What matters is the reason for separation and whether any portion of the settlement represents wages or severance. Always be honest about the settlement when filing your claim, and be prepared for a potentially longer adjudication process as Washington ESD reviews the circumstances.

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Thanks for the clear summary. I feel much more confident about filing now.

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Excellent overview. The key is transparency with Washington ESD about all the details of your separation and settlement.

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filed my claim yesterday after reading this thread. hopefully it goes smoothly but at least now i know what to expect if they have questions about my settlement

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Good luck! Let us know how it goes.

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the most important thing is that you were fired through no fault of your own. the settlement is secondary to that main qualification

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Exactly, and I have plenty of evidence that the termination was retaliation for reporting safety issues.

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For anyone still struggling to get through to Washington ESD about complex situations like this, I can't recommend Claimyr enough. Having an actual conversation with a knowledgeable rep made all the difference in understanding how my settlement would be handled. The peace of mind was worth it.

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How long did it take them to connect you with someone?

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They called me back within 2 days with a scheduled time to call Washington ESD together. Way better than trying to get through on my own.

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