Can you collect Washington ESD unemployment if you receive a settlement?

Settlement money is generally not considered wages or employment income for Washington ESD purposes. However, you should definitely report it when you file your weekly claim just to be safe. The settlement is from an unrelated incident (your car accident) and shouldn't affect your unemployment eligibility as long as you're still able and available for work.

I had something similar happen with a workers comp settlement while on unemployment. Washington ESD didn't reduce my benefits at all because it wasn't from work I was doing while collecting UI. The key is that settlements are typically compensation for damages, not wages.

You definitely need to call Washington ESD directly about this situation. I tried calling their regular number for weeks and could never get through - always got disconnected or put on hold forever. Then someone told me about Claimyr (claimyr.com) which actually got me connected to a real Washington ESD agent within minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Worth checking out if you need to speak with someone quickly about your settlement question.

wait what kind of settlement are we talking about here? is this like insurance money or something else? because that could make a difference in how washington esd treats it

Be very careful with this! Washington ESD can be really strict about unreported income. I know someone who got hit with an overpayment notice for not reporting a small insurance payout. Even if it doesn't affect your benefit amount, failing to report could cause bigger problems later. Document everything when you report it.

I'm dealing with something similar but mine is a workers compensation settlement. Been waiting 3 weeks for Washington ESD to get back to me about whether it affects my benefits. Their adjudication process is so slow right now.

Just to follow up on my Claimyr recommendation - I actually used it again last week to get clarification on my job search requirements and got connected to a Washington ESD agent in under 10 minutes. Saved me hours of frustration trying to call the regular way. Definitely worth it for specific questions like settlement reporting.

The general rule is that settlements for personal injury or property damage don't count as wages for unemployment purposes. But Washington ESD might still want to review it to make sure. I'd report it with a clear explanation of what it's for.

UGH this is exactly the kind of confusing situation that makes dealing with Washington ESD so frustrating! Why can't they just have clear guidelines on their website about different types of income and settlements?

Just be honest and report it. If it's truly not related to employment, Washington ESD shouldn't reduce your benefits. The worst thing you can do is not report it and have them find out later somehow.

I had a similar question about inheritance money while on unemployment and Washington ESD told me it didn't affect my benefits since it wasn't earned income. Settlements are usually treated the same way from what I understand.

The key question Washington ESD will ask is whether the settlement compensates you for lost wages or just for damages/injuries. If it's purely for medical bills and pain/suffering, it shouldn't affect your unemployment.

honestly the whole system is set up to confuse people. they make it so complicated to figure out what you need to report and what you dont. just another way to trip people up and deny benefits

Update us on what happens when you report it! I'm curious to see how Washington ESD handles it since I might be in a similar situation soon with a potential settlement from a slip and fall case.

I used Claimyr a few months ago when I had questions about my standby status and it was honestly a game changer. Being able to actually talk to a Washington ESD agent instead of getting hung up on made such a difference. Highly recommend it for situations like this where you need specific guidance.

The bottom line is settlement money for personal injury isn't wages so it shouldn't disqualify you from unemployment. But Washington ESD is unpredictable sometimes so definitely report it to cover yourself.

Good luck with everything! Hope the settlement helps with your situation and doesn't cause any issues with your unemployment benefits.

This thread was really helpful for me too since I'm dealing with a workers comp settlement question. Glad someone asked about this topic!

Just want to echo what others said about using Claimyr if you need to talk to Washington ESD directly. I was skeptical at first but it really does work. Saved me so much time and frustration compared to trying to call the regular way.

Thanks for posting this question! I've been wondering about the same thing with a potential settlement from a workplace accident (not workers comp related). Good to know these types of settlements generally don't affect unemployment benefits.

I went through something similar last year with a personal injury settlement from a slip and fall. Washington ESD didn't reduce my benefits at all since it wasn't work-related income. The key is being upfront about it when you file your weekly claim. I reported it under "other income" with a brief explanation that it was a personal injury settlement unrelated to employment. They reviewed it for about 10 days and then confirmed it wouldn't affect my benefits. Just make sure you keep all your settlement paperwork in case they ask for documentation later. The transparency really helps avoid any issues down the road.