Can I get Washington ESD unemployment if I get severance pay from my employer?

Severance pay in Washington doesn't automatically disqualify you from unemployment benefits, but it can affect the timing. Washington ESD considers severance as wages paid for a specific period. If your severance is equivalent to 2 weeks of pay, you typically can't collect UI benefits for those 2 weeks. The key is how your employer reports it - whether it's allocated to specific weeks or given as a lump sum.

That makes sense. My HR department said they're paying it as a lump sum but it represents 4 weeks of my regular salary. So I'd have to wait 4 weeks before I could start collecting?

Not necessarily. If it's paid as a lump sum without allocation to specific weeks, Washington ESD might not consider it as wages for particular weeks. You should still file your claim right away and let them make the determination.

I went through this exact situation last year. Filed my claim immediately after my last day even though I got severance. Washington ESD asked for documentation about the severance - how much, when paid, what period it covered. They ended up approving my benefits but deducted the severance amount from my first few weeks of payments.

What kind of documentation did they want? I want to be prepared when I file.

They wanted a copy of my severance agreement and a letter from HR explaining the payment terms. Make sure you keep all that paperwork!

This is so confusing. I've been trying to get through to Washington ESD for weeks about my severance situation but their phone lines are always busy. Has anyone found a better way to reach them? I'm getting desperate here.

I had the same problem until someone told me about Claimyr. It's a service that helps you get through to Washington ESD agents by phone. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of dialing.

Really? That sounds almost too good to be true. How does it actually work?

Basically they handle all the redialing and waiting for you. When they get an agent on the line, they connect you. Way better than sitting there hitting redial for hours.

Washington ESD is a nightmare to deal with. They'll probably tell you that your severance disqualifies you even if it doesn't. The system is designed to deny benefits first and ask questions later. I'd get ready for a fight.

That's what I'm worried about. I can't afford to wait months for an appeal if they deny me initially.

While Washington ESD can be difficult, severance rules are pretty straightforward. As long as you're honest about the severance on your application, they should handle it correctly.

Just file your claim now! Don't wait. Even if there's a severance issue, you want to get the process started. The worst thing you can do is delay filing because you're unsure about something.

Good point. I'll file as soon as I get my final paperwork from HR.

I'm dealing with something similar but my severance is being paid out over 6 months instead of a lump sum. Anyone know if that changes things?

That's actually more complicated because Washington ESD will likely treat each monthly payment as wages for that specific period. You'd probably be ineligible for benefits during any week you receive a severance payment.

Ugh, that's what I was afraid of. Might be better to negotiate for a lump sum instead.

Whatever you do, don't lie about the severance on your weekly claims. Washington ESD will find out eventually and then you'll owe back all the benefits plus penalties. I've seen people get hit with huge overpayment notices because they weren't honest about severance.

Definitely planning to be completely honest. Not worth the risk of fraud charges.

Smart. The overpayment notices are no joke. They'll garnish wages and tax refunds to get their money back.

Does anyone know if vacation pay is treated the same as severance? I'm getting both when I'm laid off next week.

Vacation pay is treated differently than severance. Unused vacation is typically considered wages for the period when you would have used it. So if you have 2 weeks of unused vacation, that might delay your benefits by 2 weeks.

So confusing. Wish Washington ESD would just publish clear examples of these scenarios.

Been there! Got laid off with severance in 2023. The key thing is timing - make sure you understand exactly when your severance period ends so you know when to expect your UI benefits to start. Also keep detailed records of everything.

Good advice on the record keeping. I'm starting a folder with all my employment and severance documents now.

I used Claimyr when I had severance questions and it was worth every penny. Took forever to get through on my own but they connected me to an agent in like 20 minutes. The agent was able to explain exactly how my severance would affect my claim.

How much does Claimyr charge? Is it expensive?

It's not free but honestly way cheaper than sitting on hold for hours or missing work to call during business hours. Check their website for current rates.

Pro tip: if you're getting severance, make sure you understand whether it includes continuation of health benefits. That can affect your job search requirements with Washington ESD.

Good point. My severance includes COBRA payment for 3 months. I'll mention that when I file.

This whole thread is making me nervous about my own situation. I got severance 2 months ago and have been collecting unemployment. Now I'm worried I did something wrong.

If you were honest about your severance when you filed and on your weekly claims, you should be fine. Washington ESD would have caught any issues by now.

I think I was honest but now I'm second-guessing myself. Maybe I should call and double-check.

Question about severance and work search requirements - do I still need to look for work during the weeks I'm receiving severance pay?

Yes, you still need to meet work search requirements even during severance periods. Washington ESD expects you to be actively looking for work as long as you're filing weekly claims.

That seems counterintuitive but good to know. I'll keep track of my job search activities.

Has anyone dealt with severance from a federal job? I'm wondering if the rules are different for government employees.

The basic severance rules should be the same regardless of whether you worked for private or government employers. What matters is how the severance is structured and paid.

Honestly, the whole severance thing is why I almost turned down my package. Seemed like it might cause more problems than it was worth with unemployment.

I thought about that too, but $8,000 is too much to turn down. I'll figure out the unemployment stuff later.

Smart choice. Take the severance. Even if it delays your UI benefits, you're still better off financially.

One more thing - make sure your employer doesn't report your severance incorrectly to Washington ESD. I had to fight with both my ex-employer and ESD because they coded my severance wrong initially.

How would I know if they reported it wrong?

You'll see it on your wage and benefit inquiry in your ESD account. If the amounts or dates don't match what you actually received, contact them immediately.

Thanks for all this info everyone. I feel much more prepared to file my claim now. Going to gather all my severance paperwork and file online this weekend.

Good luck! This discussion has been really helpful for me too.

One last thought - if your severance includes stock options or bonuses, those might be treated differently than regular severance pay. Worth asking about if that applies to your situation.

Mine is just regular salary continuation, but good to know for others reading this.

For what it's worth, I used Claimyr twice last year for different issues and they were great both times. Really takes the stress out of trying to reach Washington ESD by phone.

Alright, you've convinced me. Going to check out their website tonight.

Bottom line for OP - file your claim, be honest about the severance, keep good records, and don't stress too much about it. The system is designed to handle these situations even if it doesn't always feel that way.

Perfect summary. Thanks to everyone who shared their experiences. This community is really helpful!