Can I collect ESD benefits during unpaid leave? HR says it's complicated
So my company is struggling and just announced 'temporary unpaid leave' for 3 months for about 25% of staff - including me. My manager said we're still technically employed but won't be paid or working at all until business picks back up (hopefully). HR sent a vague email saying we 'might qualify for unemployment' during this time but weren't clear about it. Has anyone dealt with this before? I've never filed for unemployment and I'm confused if I even qualify since I'm not actually laid off. I need to figure this out ASAP since rent is due next week and I suddenly have zero income. Will ESD approve my claim if I'm on unpaid leave but still 'employed'?
22 comments
Rebecca Johnston
yes u can file! unpaid leave = no income = eligible. did it last yr when my restaurant closed for renovations for 6 wks. just be honest on ur app about the situation
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KingKongZilla
•Thanks! Did you have any issues with the 'reason for separation' part of the application? I'm not sure what to put since technically I wasn't fired or laid off.
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Nathan Dell
You absolutely qualify for unemployment while on unpaid leave, but there are some important details to get right. When you file, select 'temporary layoff' or 'reduction in hours' (not 'still working'). Make sure you explain in the comments that this is employer-mandated unpaid leave - NOT voluntary time off. You'll need to be available for work during this time, which means you technically could take another job while on leave. I went through something similar in 2025 when my healthcare employer put us on rotational furlough for 8 weeks. ESD approved my claim because I had zero earnings during those weeks. Just be completely transparent about your situation and you should be fine.
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KingKongZilla
•This is incredibly helpful, thank you! So even though my employer considers me 'still employed' I should choose temporary layoff? I was worried about saying the wrong thing and getting denied.
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Nathan Dell
•Yes, exactly. What matters to ESD is that you're not currently being paid for work through no fault of your own. 'Still employed but not working or being paid' is functionally a temporary layoff in ESD's system, even if your company uses different terminology. Just make sure to explain the complete situation in the comments section of your application.
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Maya Jackson
CAREFUL!! My company did this exact thing last year and half my coworkers got DENIED because our HR department reported to ESD that we were still employed!!! You need to contact your HR IMMEDIATELY and ask how they will respond when ESD contacts them about your employment status!!! If they say you're still employed with the company but just not working, you could get rejected and have to go through the whole appeal process which took my coworker almost 2 months!!!!!!
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KingKongZilla
•Oh no, that sounds like a nightmare. I'll email HR today to ask specifically how they'll respond to ESD. Did your coworkers eventually get approved after appealing?
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Maya Jackson
•Yes but it was a HUGE HASSLE. You need to get it in writing from HR that they understand you're filing for unemployment and get them to confirm what they'll tell ESD. Our HR was totally clueless and didn't realize they were screwing us over by saying we were 'still employed' even though we weren't being paid a single dollar!!!!
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Tristan Carpenter
I work with unemployment claims and can confirm that in Washington state, you are generally eligible for benefits during a company-mandated unpaid leave period. However, there are some specific requirements: 1. The reduction in hours must be through no fault of your own 2. You must be able and available to work during this time 3. You must be actively seeking work unless you have a definite return date within 8 weeks When you file, be very clear about your situation. If your employer has given you a definite return date within 8 weeks, you may qualify for what's called 'standby' status, which means you wouldn't have to look for other work while collecting benefits. If your return date is beyond 8 weeks or uncertain, you'll need to complete three job search activities each week to maintain eligibility. Document everything carefully, including any communications from your employer about this unpaid leave.
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KingKongZilla
•Thank you for the detailed explanation! My employer said it would be 'approximately 3 months' but didn't give an exact return date. Does that mean I wouldn't qualify for standby and would need to do the job searches?
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Tristan Carpenter
•Since your employer indicated 'approximately 3 months' (which is more than 8 weeks), you likely wouldn't automatically qualify for standby status. However, you can still request standby on your initial application - just be prepared that ESD may deny that specific part while approving your overall claim. If that happens, you would need to complete and document the three job search activities each week.
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Amaya Watson
i was in this exact situation in january!!! my company called it "furlough" not unpaid leave but same thing. i called esd like 40 times trying to get through to ask questions and kept getting disconnected or waiting for hours. super frustrating!!!
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Grant Vikers
•I went through something similar trying to reach ESD last month. After getting hung up on multiple times, I found this service called Claimyr that got me through to an ESD agent within 20 minutes. They basically call ESD for you and then connect you when they get through. Saved me days of frustration. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Worth checking out if you keep hitting walls trying to get through to ESD.
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KingKongZilla
•That's exactly what I was worried about - not being able to get answers from ESD directly. I'll check out that service if I run into problems. Did you eventually get your benefits approved during your furlough?
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Amaya Watson
•yah i got approved but it took like 3 weeks cuz they had to 'verify with employer' or something. make sure u upload any documentation from ur company about the unpaid leave when u file
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Giovanni Martello
When I was put on unpaid leave last year, I made sure to use very specific language in my application. I said I was experiencing a "temporary layoff due to lack of work" even though my employer called it "unpaid administrative leave." ESD approved my claim within a week. I think the key was that I made it very clear I wasn't being paid and had no choice in the matter. I also uploaded the letter from my employer explaining the situation. This might help your application go through more smoothly. And make sure to file right away! Don't wait, as benefits aren't retroactive before your application date.
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KingKongZilla
•Thank you! This is really useful. I'll definitely upload the email from HR about the unpaid leave. I'm filing today so hopefully that helps things process quickly.
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Savannah Weiner
does anyone know how much they take out for taxes? should i have them withhold or just deal with it next april?
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Giovanni Martello
•They withhold 10% for federal taxes if you choose that option. I personally preferred having them withhold it so I didn't have a surprise tax bill. Just remember that unemployment benefits are fully taxable income.
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Savannah Weiner
•thx! probably smart to withhold
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KingKongZilla
Update: I filed my claim yesterday and made sure to select 'temporary layoff' as suggested here. I also uploaded the official unpaid leave notice from my company and explained everything clearly in the comments section. Now I'm just waiting for it to process. Thank you all for the advice - this has been incredibly helpful for navigating a stressful situation!
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Nathan Dell
•Great job! Make sure you file your weekly claims on time even while waiting for the initial claim to be processed. If your claim is approved, they'll pay for those weeks retroactively, but only if you've properly filed the weekly certifications.
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