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Andre Lefebvre

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.

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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That makes sense! So I should calculate how many weeks my $8000 severance covers based on my weekly gross pay?

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Exactly. Divide your severance by your weekly gross wages to get the number of weeks you'll be disqualified.

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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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Good point about being honest. Did you have any problems with the calculation or was it straightforward?

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Pretty straightforward once I got through to someone. Took forever to reach an actual person though - kept getting disconnected.

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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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Never heard of that service before. Does it actually work or is it just another scam?

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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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I used them too when I had adjudication issues. Much better than hitting redial for hours.

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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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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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I guess that makes sense legally but it still sucks financially

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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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Mine is a lump sum payment. Does that change anything about the calculation?

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Lump sum is what I described earlier - they divide it by your weekly wages to determine disqualification weeks.

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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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That's really good advice. I was thinking I should wait until after the severance period to file.

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nope file immediately when you lose your job. the sooner the better

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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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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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Great so I need to figure out what my employer is actually calling this payment

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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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Good point. I need to read the severance agreement more carefully to see what's included.

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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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Simple enough when you put it that way. Thanks everyone for the help!

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Yeah this thread was super helpful. I was totally confused about this stuff before.

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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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I might try that if I can't get through the normal way. The phone system is definitely frustrating.

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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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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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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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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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That's a relief! I was worried the severance would eat into my total benefit time.

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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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I'll definitely review the paperwork with that in mind. Thanks for the warning.

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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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I mean, severance is better than nothing. At least you get some money while you're job hunting.

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True but the timing is just frustrating when you need every dollar

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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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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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Ugh, more paperwork. But thanks for the heads up.

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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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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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About 3 hours of calling on and off. This was back in October though, might be different now.

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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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Good point. I should start networking now even before the layoff happens.

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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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How much does it cost? Might be worth it if it saves that much time.

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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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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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Glad it helped! Everyone here gave really solid advice.

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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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Already started a spreadsheet with all the details. Documentation is definitely key with government agencies.

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