Can I collect Washington ESD unemployment if I get a severance package?

Thanks for the info! Do you know if there's a way to find out exactly how it will affect my claim before I sign the severance agreement?

You can call Washington ESD to ask about your specific situation, but be prepared for long wait times. They can give you guidance based on the exact terms of your severance package.

It's being paid as a lump sum when I leave. Does that make a difference compared to if they spread it out over 8 weeks?

Yes, lump sum is generally better for unemployment purposes. Washington ESD will determine how many weeks that severance covers based on your regular weekly wage, and you'll have to wait that period before benefits start.

Did you have to report the severance when you filed your initial claim?

Yes, you absolutely have to report it. They ask about severance pay specifically in the application. Being honest upfront saves you headaches later.

This is good to know. I'm potentially facing a layoff too and wasn't sure about the severance implications.

So I don't have to wait for the severance to end? That's a relief! They haven't told us yet if it's lump sum or weekly payments.

Wait, I thought any income would disqualify you from UI benefits? This is confusing.

That's exactly what I was worried about. Did you have to report the severance amount when you filed your initial claim?

Yes, I had to report it and they calculated how many weeks it would delay my benefits. Make sure you understand the terms before signing anything.

This is really helpful! I'm going to ask HR about the payment structure tomorrow.

I had the same situation last year. Got 6 weeks severance as lump sum and was able to collect full UI benefits right away. Just had to report the severance amount when I filed my initial claim.

Thanks for this! I've been dreading trying to call Washington ESD. How much does this service cost?

I don't remember the exact cost but it was totally worth it to avoid spending hours on hold. The peace of mind knowing I was talking to an actual ESD representative was huge.

Good point. My severance does include my unused PTO payout. Does that get calculated separately?

Usually vacation pay is treated the same as severance for unemployment purposes, but sick pay might be different. Best to ask Washington ESD directly about your specific package.

I had the same problem until I found Claimyr - it's a service that helps you get through to Washington ESD agents. Check out claimyr.com and they have a video demo at https://youtu.be/7DieNd3C7zQ. Really helped me get my questions answered without spending hours on hold.

Never heard of that before but I'm desperate at this point. Does it actually work?

Yeah it worked for me. I was able to speak with someone about my adjudication issue within a day instead of waiting weeks trying to call myself.

Are you sure about this? I thought it depended on how the severance was structured and whether it was for a specific time period or just a general payment.

It's actually more nuanced than that. The specific language in the severance agreement matters a lot. Some severance payments don't delay benefits if they're not tied to specific time periods.

I recently discovered Claimyr.com - they help you get through to Washington ESD agents without the endless hold times. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling.

Thanks, I'll check that out! My sister really needs to talk to someone before she makes her decision about the severance package.

How long has your claim been in adjudication? I'm worried mine will get stuck there too if I take the severance.

3 weeks so far with no updates. I can't get through to anyone to find out what's taking so long. The waiting is killing me financially.

You might want to try that Claimyr service someone mentioned earlier. Adjudication delays are exactly the kind of thing they help with.

True, having a clear timeline is better than uncertainty. How long did your overall unemployment claim take to process?

once the severance waiting period ended, my weekly claims started processing normally. took about 2 weeks to get the first payment after that

Good point! I'll need to ask about COBRA vs continued coverage as part of the package.

Good point about the wording. I should probably have someone look at the agreement before I sign it. Do you know if there are specific phrases I should look for?

Look for language about whether it's 'wages in lieu of notice' or 'continuation of salary.' Also check if it's tied to specific dates or just a lump sum payment. That affects how Washington ESD will treat it.

What happened in your case? Did the severance delay your benefits?

Yeah, it delayed them for about 6 weeks. But the worst part was not knowing what was happening. Washington ESD kept my claim in pending status forever while they 'reviewed' the severance information.

I hadn't thought about that. The agreement does mention I need to be available for transition assistance. Could that be a problem?

It might be. If you're required to be available for work with your former employer, Washington ESD might question whether you're truly available for other employment. Definitely something to clarify with them.

This is why I hate corporate severance packages. They always try to sneak in these gotchas that mess with your benefits.

This is why I hate dealing with unemployment stuff - so many little details that can trip you up!

It's definitely complex, but the Washington ESD website has a good breakdown of different payment types and how they affect benefits. Worth reading through before you file.

Mine would be paid out over 2 months, so that might be a problem. I should probably ask my HR department about restructuring it as a lump sum.

That would probably be better for your unemployment claim, but make sure you understand any tax implications of taking it as a lump sum too.

Should I start looking for work right away or wait until the severance period is over?

Start looking right away! The job market can be tough, and you don't want to waste those 8 weeks. Plus when your benefits do start, you'll already have your job search documentation ready.

Absolutely, I would never try to hide it. I just want to understand how it will affect my claim before I make any decisions about the severance offer.

Smart approach. And definitely get any information about how it affects your benefits in writing if possible.

Yeah, at least now I know what to expect. The waiting period isn't ideal but it's predictable.

Exactly. Better to know upfront than be surprised later when filing your claim.

Non-competes don't typically affect UI eligibility as long as you're able and available for work in your field. But you should definitely review any restrictions with an employment attorney if the non-compete is broad.

Ugh, I hadn't even thought about non-compete issues. This is getting complicated fast.

Did you have any say in how the severance was structured? Our HR hasn't given us details yet.

At my second company, they offered both options. Most people didn't realize the UI implications and just took weekly payments. I specifically asked for lump sum after researching Washington ESD rules.

Turning down severance shouldn't affect UI eligibility since it's not refusing work. But you'd want to document your reasons and maybe get that clarified with Washington ESD if you're considering it.

Why would anyone turn down free money though? Even if it delays UI benefits slightly, severance is usually better than unemployment payments.

Great advice! I'll definitely get everything documented. This whole process is stressful enough without adding uncertainty about payment details.

Good point about taxes. I should probably talk to an accountant too. This is turning into more research than I expected!

Yeah, severance is taxed as regular income, so you'll want to set aside money for taxes if they're not withholding enough.

You might need to speak directly with Washington ESD about your specific situation. That's where Claimyr really helped me - I was able to get through to an actual agent who could explain how different severance structures would affect my benefits timeline.

Thanks, I keep seeing Claimyr mentioned. Might be worth trying since my company's HR is being useless.

I'm skeptical of paying for something that should be free, but I have to admit I've wasted so many hours trying to reach ESD that it might be worth it.

I was skeptical too initially, but the time saved and stress reduction made it worthwhile for me. Everyone's situation is different though.

Good reminder. I'll make sure to save copies of everything before I sign.

Yes, and keep digital copies backed up somewhere safe. You might need them months later for verification purposes.

Job search requirements start as soon as you file your initial claim with Washington ESD, regardless of when benefits start paying. You need to be actively looking for work from day one.

That makes sense but seems unfair if you're getting severance. Like, why do I need to job search if I'm still being paid by my old employer?

The logic is that you're unemployed regardless of severance payments. Washington ESD wants to ensure you're actively seeking work rather than just riding out the severance period without looking.

That's encouraging! Did you have any issues with the adjudication process or did it go smoothly?

Went smoothly because I had all my paperwork organized and reported everything accurately. I think problems arise when people try to hide income or aren't clear about their situation.

Stock options that vest in the future typically don't affect current UI benefits since they're not immediate income. But if you exercise options while on UI, that could be considered income depending on the situation.

Thanks! My situation is pretty complex so I'll probably need to talk to Washington ESD directly about the specifics.

That's really helpful insight from the HR perspective. Do you think it would be worth asking my company to structure the severance as a true severance payment rather than wages in lieu of notice?

It might be worth discussing with them, but they may have their own reasons for structuring it the way they do. Companies often have standard severance policies they follow.

I understand the frustration, but the logic is that severance is intended to bridge the gap until you find new work. The system assumes you don't need immediate unemployment assistance if you're getting severance pay.

I get the logic, but in practice it just adds another layer of complexity to an already stressful situation.

No, the severance waiting period doesn't count against your total benefit duration. You still get your full 26 weeks (or whatever your benefit year allows) once benefits actually start.

That's a relief. Thanks for clarifying that!

Definitely start gathering documents now. You'll need your employment history, wage information, and details about your separation. Having everything ready makes the filing process much smoother.

Good thinking. I'll start putting together a folder with all my employment records and pay stubs.

Good luck with everything! Planning ahead definitely makes the process smoother.

You're welcome! Don't hesitate to ask if you run into any issues during the actual filing process.

So they basically treat it as if you're still employed for that period? That makes sense I guess, even if it's frustrating.

Exactly. The logic is that you're getting paid for that time period, so you don't need unemployment benefits during those weeks.

Interesting idea. Though based on what others said, lump sum might actually be better for unemployment purposes.

You're right, lump sum is generally better for unemployment. I was thinking more about cash flow management, but for ESD purposes lump sum is usually the way to go.

It really is more complex than most people realize. That's why it's worth taking time to understand your specific situation before filing.

Definitely. Better to do the research upfront than deal with complications later.

Good to hear another positive experience with that service. I'm definitely considering it if I run into issues.

Yeah, I was hesitant at first but ended up being really glad I used it. Saved me hours of frustration.

That's crucial information! I would have waited to file until after the severance period. Thanks for that tip.

You're welcome! It's a common mistake that can really mess up your benefit timeline.

I think I'm going to have to do that too. This thread helped a lot but I still have specific questions about my situation that probably need an agent to answer.

Same here. My company's severance terms are pretty unique and I need to understand exactly how Washington ESD will treat them before I make any decisions.

Great advice! I'll make sure to keep copies of everything. Thanks to everyone who contributed to this thread - you've all been incredibly helpful!

This is why I love this forum. Real people sharing real experiences instead of just reading confusing government websites.

Same here! I'm definitely going to try to get more specific information about how it would affect my claim before I sign anything.

If you need to talk to Washington ESD about it, seriously consider using Claimyr. It's so much easier than trying to get through on your own. The peace of mind is worth it.

Just the timing usually. Your weekly benefit amount is based on your earnings history, not on any severance you receive. The severance mainly affects when you can start collecting.

That's a relief at least. Thanks for clarifying that!

I know right? It would be so much easier if they just had clear examples of different scenarios on their website.

They do have some information on their site, but it's pretty general. Each situation is unique enough that you really need to talk to someone who can look at your specific circumstances.

That's great to hear! I think I'm going to try Claimyr too. What did they tell you about your severance situation?

They said mine would delay benefits for 6 weeks but wouldn't affect my weekly benefit amount. At least now I know what to expect and can plan accordingly.

That's smart thinking. I'm going to ask my HR department if that's an option for me too.

It's worth asking. The worst they can say is no, but they might be willing to work with you if you explain your situation.

Good point. I'll make sure to get the exact payment schedule in writing so I can report it accurately to Washington ESD.

Exactly. The more documentation you have, the smoother the process will go with Washington ESD.

Good luck with everything! Make sure to document all your communications with both your employer and Washington ESD.

And remember, if you have trouble reaching Washington ESD, Claimyr is there to help. It really makes the whole process much easier.