Can I collect Washington ESD unemployment if business is sold?
My employer just sold their business to another company and I'm not sure what happens to my job. The new owners haven't said anything about keeping existing employees yet. If they don't offer me a position or if the terms are significantly different, can I file for unemployment benefits through Washington ESD? I've been working there for 3 years and never collected UI before. Does anyone know how this works when ownership changes?
42 comments


Charlotte Jones
Yes, you can potentially collect unemployment if you lose your job due to a business sale. The key is whether you have 'good cause' for leaving. If the new owners don't offer you comparable work or significantly change your job terms, that could qualify.
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Logan Greenburg
•What counts as 'significantly different' terms? They mentioned they might reduce hours or change the pay structure.
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Charlotte Jones
•Substantial reduction in hours or pay can qualify as good cause. Washington ESD looks at whether the changes would make any reasonable person quit.
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Lucas Bey
I went through this exact situation last year when my company was acquired. You have to wait and see what the new owners offer first. If they don't offer you a position, it's considered a layoff and you can file immediately. If they offer you something but it's substantially worse, you can quit and still potentially qualify.
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Logan Greenburg
•How long did you have to wait for them to make their decision about keeping employees?
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Lucas Bey
•In my case it was about 2 weeks. But I had the hardest time getting through to Washington ESD to file my claim. The phone lines are constantly busy.
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Harper Thompson
•Same problem here with calling Washington ESD! I used claimyr.com to get through faster. They have this system that calls for you and connects you when an agent picks up. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.
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Caleb Stark
Be careful about quitting too quickly. Washington ESD requires you to give the new employer a chance to provide comparable work. Document everything - the original job offer, any communications about changes, etc.
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Logan Greenburg
•Should I be documenting things now before the sale is finalized?
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Caleb Stark
•Absolutely. Keep records of your current job duties, pay, hours, benefits. You'll need this to show what constitutes 'comparable' work.
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Jade O'Malley
ugh this is so stressful!! my company got bought 6 months ago and they kept changing our schedules and cutting benefits. finally quit last month and now washington esd is taking forever to process my claim. still in adjudication
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Logan Greenburg
•How long has your claim been in adjudication? I'm worried about that happening to me.
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Jade O'Malley
•going on 3 weeks now. called like 50 times and can never get through to an actual person
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Harper Thompson
•Try that claimyr service I mentioned above. It's been a lifesaver for getting through to Washington ESD agents when you need to check on adjudication status.
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Charlotte Jones
Important point - if you do qualify for UI after the business sale, your benefits will be based on wages from your previous employer, not the new company. Make sure you have your wage records ready when you file.
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Logan Greenburg
•Do I need to get anything from HR before the sale goes through?
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Charlotte Jones
•Get copies of your pay stubs, especially recent ones. Washington ESD can verify wages electronically but having your own records helps if there are any discrepancies.
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Hunter Edmunds
The whole system is rigged anyway. They'll find some excuse to deny your claim no matter what the circumstances are. Washington ESD just wants to save money.
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Lucas Bey
•That's not true. I got approved when my company was sold. You just have to follow the rules and document everything properly.
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Hunter Edmunds
•Maybe you got lucky. I've seen plenty of people get denied for business closure situations.
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Logan Greenburg
Update: The new owners want to meet with all employees next week to discuss our 'future with the company.' Should I wait until after that meeting to start gathering documentation?
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Charlotte Jones
•Start gathering docs now, but definitely wait for the meeting before making any decisions. That meeting will give you crucial information about what they're offering.
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Lucas Bey
•Yes, and take notes during the meeting. If they make verbal promises about job security or benefits, follow up with an email summarizing what was discussed.
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Ella Lewis
just wanted to say good luck!! going through job uncertainty is the worst. at least unemployment benefits exist as a safety net
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Logan Greenburg
•Thanks! Trying to stay positive but it's definitely stressful not knowing what's going to happen.
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Caleb Stark
One more thing - if you do end up filing for unemployment, you'll still need to do your weekly claims and job search requirements even if you're hoping the new company will hire you back or offer you something better.
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Logan Greenburg
•How many jobs do you have to apply for each week in Washington?
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Caleb Stark
•It's 3 job search activities per week. Can include applications, networking, interviews, etc. You log them in WorkSourceWA.
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Jade O'Malley
•that job search requirement is such a pain when you're dealing with other stuff. wish they would make exceptions for situations like business sales
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Andrew Pinnock
My sister went through this and the new company offered her a job but cut her pay by 30%. She quit and got unemployment approved. Washington ESD said the pay cut was substantial enough to qualify as good cause.
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Logan Greenburg
•30% cut! That's huge. I'm hoping they don't try anything like that but good to know UI would cover it.
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Andrew Pinnock
•Yeah it took her a while to get through to Washington ESD to explain the situation though. The phone system is terrible.
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Lucas Bey
Actually that reminds me - when I was dealing with my business sale situation, I tried calling Washington ESD for weeks and kept getting hung up on. Finally used claimyr to get through. It's this service that handles the calling for you and connects you when they get an agent. Saved me so much frustration.
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Logan Greenburg
•Is that expensive? I'm already worried about money if I lose my job.
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Lucas Bey
•It's worth it to avoid the stress of calling hundreds of times. Plus you can watch their demo video to see exactly how it works before deciding.
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Brianna Schmidt
•I was skeptical about services like that but honestly after trying to call Washington ESD myself for days, I get why people use them.
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Charlotte Jones
Final advice - don't make any hasty decisions. If the new owners offer you a position, you have the right to consider it. If it's not comparable to your current job, you can decline and likely qualify for unemployment. Just make sure you can document why the offer wasn't reasonable.
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Logan Greenburg
•This has been really helpful everyone. I feel much more prepared for whatever happens next week.
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Charlotte Jones
•Good luck! Remember that business sales can be opportunities too. Sometimes the new owners bring better benefits or growth potential.
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Alexis Renard
Keep us posted on how the meeting goes! Situations like this happen more often than people realize.
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Logan Greenburg
•Will do! Hopefully it's good news but at least now I know my options if it isn't.
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Alberto Souchard
I went through something similar when my company was acquired two years ago. The waiting period is definitely the hardest part - not knowing if you'll have a job or what the terms will be. In my case, the new owners actually improved our benefits package, but I know that's not always how it goes. One thing I learned is that Washington ESD considers each situation individually, so having good documentation of your current job terms really matters if you do need to file a claim. The fact that you've been there 3 years and never collected UI before should work in your favor. Try to stay calm during next week's meeting and ask specific questions about salary, hours, and responsibilities if they do make you an offer.
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