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Giovanni Colombo

Can I collect Washington ESD unemployment if I receive severance pay?

Just got laid off from my tech job after 6 years and they're offering me a severance package worth about 8 weeks of pay. I really need to know if accepting this severance will disqualify me from filing for unemployment benefits with Washington ESD. My manager said something about it affecting my claim but wasn't sure of the details. Has anyone dealt with this situation before? I'm worried about making the wrong choice here since I have a mortgage and two kids to support.

You can still file for unemployment even with severance, but Washington ESD has specific rules about how it affects your weekly benefit amount. The key thing is whether it's considered 'wages in lieu of notice' or just a separation payment. When did your employment officially end?

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My last day of work was Friday but they said the severance covers 8 weeks from that date. So I guess my employment technically ends 8 weeks from now?

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That might be the issue right there. If the severance is structured as continued employment, you wouldn't be eligible until that period ends.

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I went through this exact situation last year. Washington ESD told me that lump sum severance payments don't usually affect your weekly benefits, but if it's paid out over time like regular paychecks, it can reduce your UI payments week by week.

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They haven't told me yet if it's lump sum or spread out. I should probably ask HR before I sign anything.

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Definitely ask! The structure makes a huge difference in how Washington ESD calculates your benefits.

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This is exactly why I used Claimyr when I had questions about my severance affecting my claim. Trying to get through to Washington ESD on the phone was impossible - kept getting disconnected after waiting 2+ hours. Claimyr got me connected to an actual agent who explained everything clearly. Check out their demo at https://youtu.be/7DieNd3C7zQ - totally worth it for peace of mind.

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Never heard of that service. Is it legit? I'm desperate to talk to someone at Washington ESD but can't get through.

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Yeah it's real, claimyr.com. They basically handle the calling and waiting for you so you don't have to sit on hold for hours.

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The Washington ESD website has a whole section about severance pay but it's confusing as hell. From what I understood, if your severance is more than 1.5 times your weekly benefit amount, it can delay your first payment.

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Where did you find that info? I looked on their site but couldn't find anything specific about the 1.5 times rule.

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I think that might be outdated information. The current rules are different since they updated the system in 2023.

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Whatever you do, DON'T lie about the severance when you file your claim. They WILL find out and then you'll owe everything back plus penalties. Just be honest on your initial application.

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Definitely planning to be completely honest. I just want to understand the rules before I make any decisions about the severance offer.

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Good approach. Washington ESD cross-checks with employers so honesty is the only way to go.

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The most important thing is the timing of when you receive the severance versus when your employment actually ends. If there's no overlap with your benefit year, you should be fine. But if the severance period extends past your separation date, that's when it gets complicated.

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This is so confusing. I wish there was a simple answer but it seems like every situation is different.

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That's why talking to an actual Washington ESD rep is so important. The online info only goes so far.

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I'm in a similar boat - got offered severance but scared to take it because I don't want to mess up my unemployment eligibility. My company is giving me until Monday to decide.

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If you need to talk to Washington ESD quickly, seriously consider using Claimyr. I got through in under an hour instead of spending days trying to call.

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I might have to try that. Running out of time to make this decision.

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Check your severance agreement carefully for any non-compete or job search restrictions. Sometimes those can affect your 'able and available' status for unemployment benefits too.

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Good point! I didn't even think about that. The agreement does have some restrictive language about working for competitors.

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Non-competes generally don't disqualify you from UI benefits in Washington, but you should still mention it when you file.

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My advice? Take the severance but file for unemployment immediately anyway. Let Washington ESD figure out how it affects your benefits rather than trying to guess. You can always repay if there's an overpayment issue later.

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That's risky advice. Overpayment issues with Washington ESD are a nightmare to deal with and they charge interest.

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True, but if you're honest about the severance from the start, overpayments are less likely to happen.

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I had severance and unemployment at the same time. Washington ESD just reduced my weekly benefit amount by the prorated severance amount each week. It wasn't a complete disqualification, just a reduction.

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That doesn't sound too bad. Do you remember what the calculation was? Like dollar for dollar reduction?

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I think it was dollar for dollar but I'm not 100% certain. This was about 2 years ago so the rules might have changed.

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Has anyone actually read RCW 50.20.050? That's the statute that covers severance and unemployment in Washington. It's pretty clear that severance payments can affect benefit timing but not necessarily eligibility.

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Thanks for the legal reference! Most people don't know to look at the actual statutes.

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I'll look that up. At this point I'm willing to read anything that might help clarify this situation.

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Whatever happens, document EVERYTHING. Keep copies of your severance agreement, termination letter, and all communication with Washington ESD. You'll need it if there are any disputes later.

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Good advice. I'm already keeping a folder with all the paperwork from my layoff.

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Smart move. Paper trails are everything when dealing with government benefits.

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The real question is whether you can afford to wait 8 weeks without any income if the severance does delay your benefits. That's a personal financial decision beyond just the rules.

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That's exactly what I'm trying to figure out. The severance would help but not if it means no unemployment for months after.

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Have you considered negotiating with your employer about the structure of the severance payment?

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I used to work in HR and dealt with this all the time. The key is how the severance is classified - wages vs. compensation vs. separation pay. Each category has different rules with Washington ESD.

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That's really helpful! Do you know how I can find out how my company is classifying the severance?

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It should be spelled out in the severance agreement or you can ask HR directly. They have to report it correctly to Washington ESD anyway.

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Bottom line - you need to talk to Washington ESD directly about your specific situation. All the general advice in the world won't help if your circumstances are unique.

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Exactly why I keep recommending Claimyr. Sometimes you just need to talk to an actual person who can look at your specific case.

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I think I'm going to have to bite the bullet and try to get through to them somehow. This decision is too important to guess on.

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Update us on what you decide! I'm sure other people are in similar situations and would benefit from knowing how it works out.

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Will do! I'm meeting with HR tomorrow to go over all the details, then I'll try to reach Washington ESD to get their official answer.

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Looking forward to hearing what you find out. This thread has been really informative.

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