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Natalie Adams

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

My company is offering voluntary layoffs with a severance package - 8 weeks of pay plus benefits continuation. I'm thinking about taking it since my department is probably getting cut anyway. But I'm worried about whether I can still file for unemployment benefits with Washington ESD if I accept the severance. Does anyone know if taking a voluntary severance disqualifies you from UI benefits? The severance would help but I need to know I can get unemployment after it runs out.

You can still get unemployment benefits but there might be a waiting period depending on how the severance is structured. Washington ESD will look at whether you voluntarily quit or were laid off. If it's a true layoff situation where your job was eliminated, you should be eligible even with severance.

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Thanks! It's definitely a layoff situation - they're eliminating our whole department. I just wasn't sure if accepting the package would count as voluntary.

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Make sure you get documentation from HR that it's a reduction in force, not a voluntary resignation. That paperwork will be important for your UI claim.

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The key thing is how Washington ESD classifies the separation. If you're being offered severance because your position is being eliminated, that's still considered involuntary separation for UI purposes. However, the severance payments might affect the timing of when you can start collecting benefits.

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What do you mean by timing? Would I have to wait until the severance runs out to file?

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You can file your claim right away, but Washington ESD might consider the severance as wages in lieu of notice. This could delay when your benefits start, but you'd still be eligible once the severance period ends.

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Severance doesn't automatically disqualify you from Washington ESD benefits, but the timing matters. If it's paid as a lump sum vs. spread out over time, that affects when you can start collecting UI. You'll need to report it when you file your claim.

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It's being paid weekly over 8 weeks, not a lump sum. So I should still be eligible after the severance period ends?

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Right, weekly severance payments can delay your eligibility week by week. Each week you receive severance pay might make you ineligible for that specific week of unemployment benefits.

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I went through this same thing last year. I was so confused about whether taking the severance would mess up my unemployment claim. Spent weeks trying to get through to Washington ESD to ask questions but their phone lines are impossible. Finally found this service called Claimyr (claimyr.com) that helped me get through to an actual agent who explained everything. Totally worth it - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Really? I've been trying to call for days and can't get through. How does that service work exactly?

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They basically call for you and get you connected to a real person at Washington ESD. Saved me so much time and frustration. I was able to get all my questions answered about the severance situation.

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Never heard of that but sounds useful. I've been trying to reach someone at Washington ESD for weeks about my own claim issues.

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I went through this exact situation last year. Washington ESD considers severance as wages for the weeks it covers. So if you're getting $1,062 per week in severance for 8 weeks, you probably won't qualify for UI during those 8 weeks. But you can file your claim right away - just report the severance payments on your weekly claims.

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That makes sense. Did you have any trouble getting your claim approved after the severance period ended?

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No issues at all. Just make sure you keep filing your weekly claims even during the weeks you're not eligible due to severance. Washington ESD needs that continuous filing history.

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Whatever you do, make sure you report the severance accurately when you file your weekly claims. Washington ESD will find out about it anyway when they do the wage verification with your employer. Being upfront about it from the start will save you headaches later.

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Good point. I definitely don't want to get in trouble for not reporting something I should have.

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Yes! I made the mistake of not reporting some income properly and ended up with an overpayment notice. Not fun to deal with.

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From what I understand, voluntary severance packages are treated differently than regular layoffs. You might face more scrutiny during the adjudication process. Washington ESD might question whether you had good cause to leave since you had a choice.

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That's not necessarily true. If the company is eliminating positions and offering severance to avoid formal layoffs, it's still considered involuntary separation.

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I guess it depends on how the company structures it. OP should definitely get clarity on whether this is truly a RIF situation or just voluntary departure with benefits.

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I had such a hard time getting through to Washington ESD when I had severance questions. Spent hours on hold trying to get clarification. Finally used Claimyr (claimyr.com) and got connected to an actual agent who explained everything clearly. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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How much does that service cost? I'm already stressed about money.

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It's worth it to get accurate info rather than guessing. The peace of mind knowing you're doing everything correctly is huge when you're dealing with severance and unemployment timing.

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Never heard of that service but honestly anything that gets you through to Washington ESD faster sounds good to me

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wait so if the severance is like vacation payout does that count the same way?? my company said they're paying out my unused PTO separately from severance

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Vacation payout is typically considered wages for unemployment purposes too. You'll need to report both the severance and the PTO payout to Washington ESD.

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ugh this is so confusing. why can't they just make it simple

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The Washington ESD handbook says severance pay is allocated to the period it's intended to cover. If your employer doesn't specify which weeks it covers, ESD will allocate it starting from your last day of work. This is why weekly payments are different from lump sums in terms of UI eligibility.

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My severance letter says it's 'in lieu of 8 weeks notice' so I guess that means it covers 8 specific weeks?

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Exactly. That language makes it clear which weeks the severance is intended to cover, so those would be the weeks you're likely ineligible for unemployment benefits.

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Ugh, the whole system is so confusing. I've been trying to figure out similar stuff with my claim and can't get straight answers from anyone. The Washington ESD website is useless for specific situations like this.

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That's exactly why I ended up using Claimyr to get through to someone. The website info is so general and doesn't cover edge cases.

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Maybe I should try that too. Getting tired of sitting on hold for hours just to get disconnected.

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Don't forget you still have to do job search activities during this time! Even if you're not getting UI payments because of severance, you need to be able and available for work and actively seeking employment.

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Good point. I need to keep track of my job search efforts in WorkSourceWA even during the severance weeks.

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Yes! And make sure you're meeting the minimum job search requirements each week. The fact that you're receiving severance doesn't change those obligations.

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I'm in a similar boat but my severance is based on years of service, not a specific time period. Anyone know how Washington ESD handles that?

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For severance based on years of service without specified weeks, ESD typically divides the total amount by your weekly wage to determine how many weeks it covers.

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That makes sense. So if I made $1,200/week and got $9,600 severance, that would cover 8 weeks starting from my termination date?

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That's the general formula, but definitely confirm with Washington ESD since every situation can have unique factors.

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I took a severance package in 2023 and was able to collect unemployment afterwards. The important thing is that my employer coded it as a layoff, not a voluntary quit. Make sure HR processes your separation correctly in their system.

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That's reassuring to hear. Did you have any issues during the application process?

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Nope, went pretty smoothly. I think because it was clearly a business decision to eliminate roles, not me choosing to leave. Just be honest about everything when you file.

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Check if your severance includes continuation of benefits. Sometimes that can affect how Washington ESD views your separation date and benefit eligibility. Also, make sure you understand if there are any non-compete or rehire restrictions that come with the package.

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Good point about the benefit continuation. I need to read through all the fine print on this offer.

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Definitely read everything carefully. Some severance agreements have clauses that could complicate your unemployment claim.

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My friend went through this exact situation. She was worried about the same thing but ended up being fine. Just make sure you can show that your department was being eliminated regardless of whether you took the package or not.

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That makes sense. I think I have emails from management about the department restructuring that would show it wasn't really voluntary.

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Just file your claim as soon as you're laid off. Be honest about the severance on your weekly claims. Washington ESD will sort out the eligibility week by week. Better to have the claim active than to wait and potentially miss your filing window.

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That's good advice. I was thinking about waiting until after the severance ended to file, but sounds like I should file right away.

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Definitely file right away. There's a time limit on when you can file after losing your job, and you don't want to miss that window.

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THE SYSTEM IS SO BROKEN. They make you jump through hoops just to get benefits you paid into for years. Severance, no severance, they find ways to deny you either way!!!

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I feel your frustration but the severance rules actually make sense when you think about it. You can't collect unemployment for weeks when you're essentially still being paid by your employer.

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Easy for you to say. Some of us have bills to pay and kids to feed.

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One thing to consider is whether the severance amount will affect your weekly benefit amount. Washington ESD calculates benefits based on your earnings history, so a lump sum severance might not change your weekly rate, but ongoing severance payments could.

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The severance is structured as continued regular pay for 8 weeks, not a lump sum. Would that make a difference?

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Yes, that structure means Washington ESD will likely treat those 8 weeks as a continuation of employment for benefit calculation purposes. You'd probably start receiving UI benefits after that period ends.

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Pro tip: if your severance puts you over the weekly benefit amount limit, you might still qualify for partial unemployment benefits in some cases. The calculation gets complex but it's worth asking Washington ESD about.

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I didn't know partial benefits were possible with severance. How does that work exactly?

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It depends on your weekly benefit amount and how much severance you receive each week. If the severance is less than your weekly benefit amount plus your earnings allowance, you might get a reduced payment.

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Just went through this process and Claimyr was a lifesaver for getting specific questions answered about my severance timing. Way better than trying to decode the Washington ESD website or sitting on hold for hours.

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Did they help you figure out exactly which weeks you'd be eligible vs ineligible?

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Yes, the agent walked through my specific severance terms and explained exactly how it would affect my weekly claims. Made the whole process much clearer.

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make sure you keep all your severance paperwork!! washington esd might ask for documentation later and you'll need those letters and pay stubs

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Good reminder. I'll scan everything and keep both digital and paper copies.

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smart move. also screenshot your weekly claim submissions showing the severance amounts in case there are any disputes later

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Question - if I negotiate my severance to be paid later, like 3 months from now, does that change when it affects my unemployment eligibility?

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The timing of when you actually receive the severance payment can affect when it impacts your UI eligibility. But this gets into complex territory that's best discussed with Washington ESD directly.

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Yeah, I figured this might be too specific for a forum discussion. Sounds like I need to talk to an actual agent.

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Had a friend who didn't report her severance thinking it wouldn't matter since she wasn't getting UI those weeks anyway. Washington ESD found out later and she had to deal with an overpayment mess. Always report everything!

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Yikes, that sounds like a nightmare. I definitely plan to report everything accurately on my weekly claims.

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Smart. It's not worth the risk of having to pay back money later or deal with fraud allegations.

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Anyone know if COBRA payments affect this calculation at all? My severance includes continuing health insurance coverage.

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COBRA continuation is separate from severance pay for unemployment purposes. The health insurance continuation shouldn't affect your UI eligibility calculations.

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Thanks, that's one less thing to worry about in this whole process.

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This whole thread is super helpful. I'm in the same situation and was totally confused about how severance would affect my unemployment claim. Sounds like the key is just being upfront about everything when filing.

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Glad it's helping you too! It's reassuring to know others are dealing with the same questions.

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Definitely. Sometimes you feel like you're the only one who doesn't understand how all this works.

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One more thing to consider - if your severance includes non-compete restrictions, that might affect your job search requirements. Make sure Washington ESD knows about any limitations on the types of work you can accept.

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Good point. My severance does have a 6-month non-compete clause. I should mention that when I file my claim.

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Yes, because it could affect whether you're considered 'available for work' in certain industries or roles.

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Bottom line - take the severance if it's offered, file your unemployment claim right away, report everything honestly on your weekly claims, and be prepared to not receive UI benefits during the weeks covered by severance. After that period ends, you should be eligible for regular unemployment benefits.

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Perfect summary. I feel much clearer about how to handle this now. Thanks everyone for all the helpful advice!

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You're welcome! The Washington ESD system can be confusing but it's manageable once you understand the rules.

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Actually used Claimyr again last week for a different question and they're still super helpful. If you run into any issues with your severance claim, definitely worth using their service to get through to an agent quickly.

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I'll keep that in mind if I run into any problems. Sounds like having that option available is really valuable.

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It really is. Takes all the stress out of trying to reach Washington ESD when you have urgent questions.

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Don't forget about the job search requirements. Even if you're eligible for benefits, you'll still need to actively look for work and log your job searches. Taking severance doesn't exempt you from those requirements.

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Good reminder. I'll need to start job searching right away even if I'm getting severance pay.

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I'd be careful about assuming anything. The rules can be tricky and every situation is different. I ended up in adjudication hell for weeks because I didn't understand all the nuances. If you're unsure, try to get official guidance from Washington ESD before making your decision.

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Good luck getting through to them though. I've been trying for weeks with no luck. The hold times are insane.

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That's where Claimyr really helped me out. Worth every penny to actually talk to someone who could give me real answers instead of guessing.

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Also think about the timing strategically. If you know you'll be job hunting anyway, the severance pay might give you a buffer period to be more selective about your next position while still having unemployment benefits as backup.

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That's a really good point. The severance would definitely take some pressure off the job search.

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Just went through a similar situation. Company offered voluntary severance, I took it, and had no issues getting unemployment after the severance period ended. Key was that the company was clear it was a workforce reduction, not people choosing to quit.

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Thanks for sharing your experience! That's exactly the kind of real-world example I needed to hear.

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Same here. As long as the company doesn't try to code it as voluntary resignation, you should be fine.

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Make sure you keep all documentation from your employer about the severance package and the reasons for the layoff. Washington ESD might request this during the application process, especially if there are any questions about the voluntary nature of the separation.

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Absolutely. I'm going to make sure I get everything in writing from HR about the department elimination.

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