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Fatima Al-Sayed

Can I collect Washington ESD unemployment if I take severence package?

My company is laying off a bunch of people and offered me a severance package worth about $8,000. I really need the money but I'm worried it might mess up my ability to get unemployment benefits. Does Washington ESD consider severance as wages that would make me ineligible? The HR person wasn't sure and told me to check with the unemployment office but I can't get through on the phone. Has anyone dealt with this before?

Dylan Hughes

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Severance usually doesn't disqualify you from Washington ESD benefits, but the timing matters. If it's paid as a lump sum when you're terminated, it typically won't affect your weekly claims. However, if it's structured as continued wages over several weeks, that could delay your eligibility.

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It's being offered as a lump sum payment when I leave. So I should be able to file right away?

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Dylan Hughes

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Yes, with a lump sum severance you can typically file immediately. Just make sure to report it accurately when you file your initial claim.

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NightOwl42

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I took a severance package last year and had no issues with my UI claim. Washington ESD asked about it during the initial application but it didn't delay anything. The key is being honest about it upfront.

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That's reassuring! Did they ask for any documentation about the severance amount?

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NightOwl42

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They didn't ask me for documentation initially, but I kept all the paperwork just in case they needed it later.

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If you're having trouble reaching Washington ESD by phone to get this clarified, I recently discovered claimyr.com - it's a service that helps you get through to actual ESD agents. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out since this is exactly the kind of question you want to get answered directly from an agent.

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Never heard of that before, is it legit? I'm desperate to talk to someone at Washington ESD.

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Yeah it's legitimate. I used it when I was stuck in adjudication hell for weeks. Much better than spending hours trying to call yourself.

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Dmitry Ivanov

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TAKE THE SEVERANCE! I made the mistake of turning mine down because I was scared about unemployment and regretted it immediately. You need that money and it won't hurt your claim.

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Ava Thompson

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why did you turn it down? that seems crazy to me

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Dmitry Ivanov

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I was young and stupid and listened to bad advice from someone who didn't know what they were talking about. Don't make my mistake!

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There are different types of severance arrangements that Washington ESD treats differently. If it's vacation payout or pay in lieu of notice, that might be treated as wages. But if it's just a separation payment, usually no problem. The distinction matters for your weekly claim filing.

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How do I know which type mine is? The paperwork just says 'separation package' but doesn't get specific.

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You'll need to ask HR to clarify exactly what the $8,000 represents - vacation buyout, notice pay, or just a general severance payment.

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Zainab Ali

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i got severance and unemployment at the same time no problem. washington esd doesnt care as long as you report it correctly when you file

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Thanks, that makes me feel better about taking it. Did you report the severance on your initial application or wait until they asked?

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Zainab Ali

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i put it on the initial app in the section about final wages. better to be upfront

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Dylan Hughes

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Just remember that severance might affect your job search requirement timeline. Washington ESD expects you to be actively looking for work, so if the severance gives you some breathing room, don't let it make you complacent about your job search log.

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Good point. I was planning to take a week or two to decompress but I guess I need to start looking right away.

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Dylan Hughes

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You can take some time for yourself, just make sure you're meeting the minimum job search requirements each week you claim benefits.

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NightOwl42

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One thing to watch out for - if your company is asking you to sign a non-compete or other restrictive agreement as part of the severance, that could potentially impact your ability to find new work and satisfy Washington ESD's able and available requirements.

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There is a non-compete clause in the agreement. Should I be worried about that?

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NightOwl42

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It depends on how restrictive it is. If it prevents you from working in your field entirely, Washington ESD might have questions about whether you're truly available for work.

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Non-competes are generally unenforceable in Washington state now anyway, so I wouldn't worry too much about that part.

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Ava Thompson

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definitely take the money! worst case scenario they ask you about it later but it wont disqualify you. i know people who got way more than 8k in severance and still collected full unemployment

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That's what I'm leaning toward. The $8,000 would really help while I'm job hunting.

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Since you mentioned having trouble getting through to Washington ESD, I want to emphasize again that Claimyr really does work for getting past the busy signals and hold times. I know it sounds too good to be true but I was skeptical too until I tried it. Worth it for peace of mind on questions like this.

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Connor Murphy

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How much does something like that cost? I'm already going to be tight on money.

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I'd rather not get into pricing here, but for me it was worth it to get answers quickly instead of spending days trying to call. Check their site for current info.

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Dmitry Ivanov

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The bottom line is Washington ESD sees severance and unemployment as two different things. One is compensation for past work, the other is insurance for being unemployed. Take both if you're entitled to both!

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That makes sense when you put it that way. I think I was overthinking it.

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Zainab Ali

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just make sure whatever you do, you file your ui claim as soon as possible after your last day of work. dont wait around thinking about the severance, just file

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Good reminder. My last day is Friday so I'll file over the weekend.

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One more consideration - if your severance puts you over the income threshold for any other assistance programs you might be eligible for, factor that into your decision. But from a pure Washington ESD unemployment perspective, you should be fine to take both.

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I hadn't thought about other programs. I'll look into that too. Thanks for all the help everyone!

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Dylan Hughes

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Final advice - keep excellent records of everything related to your layoff, severance agreement, and unemployment claim. If any questions come up later during your claim period, you'll want to have all the documentation ready.

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Will do. I'm going to scan everything and keep it organized just in case.

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