Can I get severance package and Washington ESD unemployment benefits at same time?
My company is laying me off next month and offering a severance package worth about $8,000. I'm wondering if I can still file for Washington ESD unemployment benefits while receiving this severance? I've heard conflicting information - some people say severance disqualifies you completely, others say it just delays when you can start collecting. Does anyone know the actual rules for Washington state? I really need both to cover my expenses while job hunting.
54 comments


Zoe Dimitriou
Yes you can receive both but there are specific rules about timing. Washington ESD considers severance as wages for the weeks it covers. So if your severance equals what you normally make in 4 weeks, you'd be disqualified for those 4 weeks but can file immediately after that period ends.
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Andre Lefebvre
•That makes sense! So I should calculate how many weeks my $8000 severance covers based on my weekly gross pay?
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Zoe Dimitriou
•Exactly. Divide your severance by your weekly gross wages to get the number of weeks you'll be disqualified.
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QuantumQuest
I went through this same situation last year. The key is being upfront about the severance when you file your initial claim. Washington ESD will calculate the disqualification period automatically. Don't try to hide it or you'll have overpayment issues later.
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Andre Lefebvre
•Good point about being honest. Did you have any problems with the calculation or was it straightforward?
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QuantumQuest
•Pretty straightforward once I got through to someone. Took forever to reach an actual person though - kept getting disconnected.
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Jamal Anderson
I had similar issues reaching Washington ESD about my severance questions. Ended up using Claimyr (claimyr.com) to actually get through to an agent. They have this system that calls for you and waits on hold - saved me hours of frustration. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.
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Andre Lefebvre
•Never heard of that service before. Does it actually work or is it just another scam?
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Jamal Anderson
•It's legit - they don't ask for any personal info, just dial the number for you and wait. Got me connected to an agent in about 20 minutes instead of calling all day.
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Mei Zhang
•I used them too when I had adjudication issues. Much better than hitting redial for hours.
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Liam McGuire
Wait so if I get 6 weeks severance I can't get unemployment for 6 weeks? That seems unfair since I'm still unemployed and looking for work.
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Zoe Dimitriou
•It's because Washington ESD considers severance as wages for those weeks. You're technically being 'paid' even though you're not working.
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Liam McGuire
•I guess that makes sense legally but it still sucks financially
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Amara Eze
Be careful about lump sum vs periodic severance payments too. If they pay you weekly over 8 weeks that might be different than getting $8000 all at once. The timing affects your UI eligibility differently.
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Andre Lefebvre
•Mine is a lump sum payment. Does that change anything about the calculation?
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Amara Eze
•Lump sum is what I described earlier - they divide it by your weekly wages to determine disqualification weeks.
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Giovanni Ricci
also make sure you file your claim right away even if you have the severance disqualification. you want to get in the system and establish your claim date. the waiting doesnt start until you actually file
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Andre Lefebvre
•That's really good advice. I was thinking I should wait until after the severance period to file.
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Giovanni Ricci
•nope file immediately when you lose your job. the sooner the better
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NeonNomad
I'm dealing with something similar but my employer is being weird about whether it's severance or vacation payout. They keep changing their story. Anyone know if vacation pay is treated the same as severance?
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Zoe Dimitriou
•Vacation pay is treated differently - it's considered wages for the actual time period it represents, not calculated the same way as severance.
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NeonNomad
•Great so I need to figure out what my employer is actually calling this payment
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QuantumQuest
One more thing - make sure you understand if your severance includes COBRA payments or other benefits. Sometimes what looks like $8000 severance is actually less in actual wages once you subtract benefit payments.
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Andre Lefebvre
•Good point. I need to read the severance agreement more carefully to see what's included.
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Mei Zhang
The Washington ESD handbook has all this info spelled out but it's buried in like 200 pages of bureaucratic language. Basically: report severance, let them calculate disqualification period, file claim anyway, wait out the period, then start collecting UI.
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Andre Lefebvre
•Simple enough when you put it that way. Thanks everyone for the help!
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Liam McGuire
•Yeah this thread was super helpful. I was totally confused about this stuff before.
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Jamal Anderson
Just to follow up on the Claimyr thing - I know some people are skeptical but it really did help me get answers about my severance situation. When you're stressed about money the last thing you want is to spend all day on hold with Washington ESD.
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Andre Lefebvre
•I might try that if I can't get through the normal way. The phone system is definitely frustrating.
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Fatima Al-Hashemi
Does anyone know if signing a non-compete as part of the severance affects UI eligibility? My company wants me to sign one but I'm worried it might impact my job search requirements.
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Zoe Dimitriou
•Non-competes don't affect UI eligibility directly, but they might limit which jobs you can accept. Washington ESD still expects you to search for suitable work within your abilities.
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Fatima Al-Hashemi
•That's what I was worried about. Don't want to get disqualified for refusing work I legally can't take.
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Giovanni Ricci
btw the severance disqualification weeks dont count toward your total UI benefit weeks. so if you get 26 weeks of UI and have 4 weeks severance disqualification, you still get the full 26 weeks once you start collecting
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Andre Lefebvre
•That's a relief! I was worried the severance would eat into my total benefit time.
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Dylan Mitchell
Had a similar situation but my severance was tied to a release agreement. Make sure you read everything carefully before signing - some companies try to sneak in language that could affect your UI claim or ability to file complaints.
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Andre Lefebvre
•I'll definitely review the paperwork with that in mind. Thanks for the warning.
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Sofia Martinez
This is exactly why I hate corporate America. They lay you off then make you wait even longer for benefits because of their severance 'gift'. The whole system is rigged against workers.
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QuantumQuest
•I mean, severance is better than nothing. At least you get some money while you're job hunting.
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Sofia Martinez
•True but the timing is just frustrating when you need every dollar
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Dmitry Volkov
Quick question - do you have to pay taxes on both the severance and UI benefits? That's going to be a nightmare at tax time.
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Zoe Dimitriou
•Yes, both are taxable income. You can have taxes withheld from UI benefits or pay quarterly estimates to avoid a big bill next year.
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Dmitry Volkov
•Ugh, more paperwork. But thanks for the heads up.
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Ava Thompson
I went through this exact situation 6 months ago. $7500 severance, took 5 weeks to burn through based on my wages. Washington ESD was actually pretty helpful once I got someone on the phone - they walked me through the whole calculation.
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Andre Lefebvre
•That gives me hope that the process isn't too complicated. How long did it take to get through to someone?
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Ava Thompson
•About 3 hours of calling on and off. This was back in October though, might be different now.
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CyberSiren
Don't forget about the job search requirements during your severance period. Even though you can't collect UI benefits, you should still be looking for work to avoid issues later.
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Andre Lefebvre
•Good point. I should start networking now even before the layoff happens.
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Jamal Anderson
Final thought on the calling situation - if you do end up needing to reach Washington ESD, Claimyr really is worth trying. I was skeptical at first but after wasting two full days trying to get through normally, spending a few bucks to have them handle the waiting was totally worth it.
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Miguel Alvarez
•How much does it cost? Might be worth it if it saves that much time.
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Jamal Anderson
•They don't post prices on the site but it was reasonable for what I saved in time and frustration. Check out their demo video to see if it's right for you.
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Zainab Yusuf
This thread has been super helpful! I'm in a similar boat with a potential layoff coming. Going to bookmark this for reference when the time comes.
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Andre Lefebvre
•Glad it helped! Everyone here gave really solid advice.
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Connor O'Reilly
One last tip - keep detailed records of everything. Dates, amounts, who you talked to at Washington ESD, etc. Makes everything easier if there are any issues down the road.
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Andre Lefebvre
•Already started a spreadsheet with all the details. Documentation is definitely key with government agencies.
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